Mortgage rates recently hit a high for 2015 but will decline this week. This past Sunday, the citizens of Greece voted "no" to a referendum to accept austere bailout terms by creditors. The no vote sent bond yields lower in Europe and the United States.
Yields on 10 year U.S. Treasuries fell 12 basis points on Monday and are down another 5 basis points this morning. Lower bond yields will send mortgage rates lower because lenders set rates based on bond yields. Average 30 year mortgage rates are already down from 4.17 percent to 4.09 percent this morning.
30 year Mortgage Rates Will Fall Back Below 4.00%
30 year rates will fall further this week and possibly fall back below 4.00 percent. The last time average 30 year mortgage rates were below 4.00 percent was at the end of May 2015. Mortgage rates were forecast to head higher in 2015 but so far that hasn't happened. 30 year rates were forecast to hit 5.00 percent this year but that is looking more and more unlikely.
In late June I wrote an article about the short term direction of mortgage rates being dependent on what plays out in Greece. The no vote on more austerity puts Greece one stop closer to a Grexit, an exit from the Eurozone. If Greece does leave the Eurozone, we could see 10 year bond yields and 30 year mortgage rates fall towards record lows set in 2013.
Bond Yields and Mortgage Rates Will Eventually Head Higher
After the dust settles in Greece, bond yields and mortgage rates will head higher because the Federal Reserve is set to increase interest rates. The Fed is expected to increase their key benchmark interest rate, the federal funds rate, sometime this year. An increase in the fed funds rate will send bond yields higher, which will send mortgage rates higher.
The CME Group's FedWatch has the probability of a 0.25 percent rate hike in September at 52.6 percent. A 0.25 percent rate hike will send 10 year bond yields higher by the same amount or more. 10 year yields are currently at 2.22 percent will probably move above 2.50 percent. 30 year mortgage rates currently at 4.09 percent will head towards 4.50 percent.
Higher Mortgage Rates Spurs Home Buying
Mortgage rates might head lower in the short term but in the long term, mortgage rates are going up. The hint of higher rates is already spurring home buying. The National Association of Realtors reported existing home sales in May soared to the highest mark since 2009 as new home sales climbed to a seven year high.
Lawrence Yun, chief economist of the National Association of REALTORS®, wrote "Buyers are coming back in force. One factor for the recent surge could have been due to the rising mortgage rates."
Listed below are current average mortgage rates today and the lowest mortgage refinance rates available in our rate database.
Average Mortgage Rates
- Conforming 30 Year Rates 4.09%
- Conforming 15 Year Rates 3.15%
- Conforming 5 Year Adjustable Rates 3.18%
- Jumbo 30 Year Rates 4.32%
- Jumbo 15 Year Rates 3.80%
- Jumbo 5 Year Adjustable Rates 3.70%
Lowest Refinance Rates
- 30 Year Conforming Rate - 3.625% with 1.10 mortgage points
- 15 Year Conforming Rate - 2.625% with 1.10 mortgage points
- 5 Year Conforming Adjustable Rate - 2.25% with 0.10 mortgage points
- 30 Year Jumbo Rate - 3.875% with 0.75 mortgage points
- 15 Year Jumbo Rate - 2.75% with 1.10 mortgage points
- 5 Year Jumbo Adjustable Rate - 2.50% with 1.10 mortgage points.
You can search for and compare rates in our state by searching our rate database: Mortgage Rates Today
The lenders whose rates and other terms appear on this chart are ICBs advertising partners they provide their rate information to our data partner RateUpdatecom Unless adjusted by the consumer advertisers are sorted by APR lowest to highest For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart Advertising partners may not pay to improve the frequency priority or prominence of their display The interest rates annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums The actual payment obligation will be greater if taxes and insurance are included Although our data partner RateUpdatecom collects the information from the financial institutions themselves the accuracy of the data cannot be guaranteed Rates may change without notice and can change intraday Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders Please verify the rates and offers before applying for a loan with the financial institution themselves No rate is binding until locked by a lender
7.133%
15-Year Fixed
6.990%
$3,556
Includes 0.889 points for $3,556
Lender Fees: $0
7.154%
15-Year Fixed
6.875%
$7,000
Includes 0.875 points for $3,500
Lender Fees: $3,500
7.425%
30-Year Fixed
7.250%
$7,000
Includes 0.875 points for $3,500
Lender Fees: $3,500
7.582%
30-Year Fixed
7.490%
$3,608
Includes 0.902 points for $3,608
Lender Fees: $0
Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes or insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.
Mortgage Rates September 27, 2023
5Y/6M ARM
8.000%
8.348%
0.991
10Y/6M ARM
8.000%
8.295%
0.812
5-Year ARM FHA
6.625%
8.277%
2.000
5-Year Jumbo ARM
6.125%
8.242%
2.000
5-Year ARM
6.500%
8.213%
2.000
7Y/6M ARM
7.750%
8.176%
0.842
5/1 ARM
7.500%
8.051%
0.950
10/1 Jumbo ARM
7.625%
7.975%
0.990
15-Year Fixed VA
6.750%
7.929%
2.000
15-Year Fixed FHA
6.750%
7.929%
2.000
30-Year Fixed FHA
6.990%
7.913%
2.000
30-Year Fixed FHA
6.990%
7.907%
2.000
20-Year Fixed
7.625%
7.906%
0.512
30 Year Fixed
7.625%
7.891%
0.958
7/1 ARM
7.250%
7.815%
0.715
10-Year Fixed
6.990%
7.788%
2.498
5/1 Jumbo ARM
6.875%
7.764%
0.700
30-Year Fixed
7.375%
7.725%
2.125
5/6 Month ARM
6.750%
7.710%
1.000
30-Year Fixed Jumbo
7.250%
7.700%
0.500
5/6 ARM
6.750%
7.700%
0.500
5/6 ARM Jumbo
6.750%
7.640%
0.500
7/6 Month ARM
7.000%
7.627%
1.000
7/6-Month ARM
6.750%
7.591%
1.000
30-Year Fixed FHA
6.750%
7.572%
1.000
10/6 ARM
7.125%
7.560%
0.500
30-Year Fixed
7.250%
7.520%
0.955
7/6 ARM
6.750%
7.520%
0.500
30-Year Fixed
7.350%
7.500%
0.750
10/6 ARM Jumbo
7.125%
7.500%
0.500
20-Year Fixed Jumbo
7.250%
7.462%
0.740
7/6 ARM Jumbo
6.750%
7.460%
0.500
10/1 ARM
6.875%
7.439%
0.740
30-Year Fixed FHA
6.750%
7.436%
2.000
30-Year Fixed VA
6.750%
7.436%
2.000
7/6-Month ARM Jumbo
6.625%
7.430%
1.000
30-Year Fixed VA
6.875%
7.427%
2.000
30-Year Fixed
6.990%
7.415%
3.191
7/1 Jumbo ARM
6.500%
7.406%
0.590
30-Year Fixed
7.250%
7.343%
1.000
30-Year Fixed
7.250%
7.322%
0.000
30-year Fixed
7.250%
7.320%
0.500
30-Year Fixed
6.990%
7.310%
2.125
30-Year Fixed Jumbo
7.125%
7.279%
0.665
10/6 Interest Only Jumbo ARM
6.750%
7.276%
1.000
15-Year Fixed Jumbo
7.125%
7.270%
0.500
20-Year Fixed Jumbo
7.125%
7.260%
0.500
20-Year Fixed
6.875%
7.256%
1.875
15-Year Fixed
7.125%
7.240%
0.500
30-Year Fixed
7.000%
7.224%
1.000
15-Year Fixed
7.000%
7.220%
1.000
15-Year Fixed
6.875%
7.215%
1.000
30-Year Fixed
7.000%
7.204%
1.000
15-Year Fixed Jumbo
6.875%
7.165%
0.925
10-Year Fixed
7.000%
7.160%
0.500
30-Year Fixed
6.990%
7.145%
0.688
15-Year Fixed
6.625%
7.099%
0.955
20-Year Fixed
7.000%
7.092%
0.000
15-Year Fixed
6.875%
7.092%
0.875
15-Year Fixed
7.000%
7.054%
0.000
20-Year Fixed
6.875%
6.970%
0.500
30-Year Fixed
6.625%
6.944%
2.000
15 Year Fixed Jumbo
6.750%
6.943%
1.000
15 Year Fixed
6.500%
6.889%
0.844
30-Year Fixed Jumbo
6.625%
6.869%
2.000
30 Year Jumbo Fixed
6.625%
6.869%
2.000
30-Year Fixed Jumbo
6.625%
6.856%
1.250
30 Year Fixed Jumbo
6.750%
6.856%
1.000
15-Year Fixed Jumbo
6.625%
6.826%
0.250
30-Year Fixed VA
6.500%
6.824%
1.000
10-Year Fixed
6.375%
6.768%
0.882
15-Year Fixed
6.250%
6.765%
2.000
30-Year Fixed Jumbo
6.500%
6.722%
2.000
20-Year Fixed
6.625%
6.713%
0.601
15-Year Fixed
6.375%
6.653%
0.879
30-Year Fixed
6.250%
6.647%
1.000
15-Year Fixed
5.750%
6.605%
4.346
30-Year Fixed Jumbo
6.490%
6.575%
1.000
15-Year Fixed
6.375%
6.574%
0.250
30-Year Fixed FHA
5.625%
6.567%
1.125
15-Year Fixed Jumbo
5.875%
6.514%
2.000
30-Year Fixed
6.625%
6.474%
0.250
30-Year Fixed Jumbo
6.625%
6.474%
0.025
3/5 Jumbo ARM
5.000%
6.063%
0.250
3/5 Conforming ARM
5.000%
6.053%
0.250
5/5 ARM
5.250%
5.989%
0.250
5/5 Jumbo ARM
5.250%
5.989%
0.250
The mortgage rates presented are solely intended for informational use. Please consult the mentioned lenders for up-to-date mortgage rates. The actual mortgage rates and other loan conditions depend on the lender's approval and are not guaranteed.
