web statistics

Higher Mortgage Rates – 15 Year Conforming Rates at 3.20 Percent

As expected, mortgage rates are were driven higher this week because of higher bond yields. 15 year conforming mortgage rates are averaging 3.20 percent, up 5 basis points from last week's average of 3.15 percent. Historically speaking, current mortgage rates are still very low. Back in 2007, average 15 year rates were as high as 6.36 percent, more than double the current rate.

Home affordably has decreased recently, not because of higher mortgage rates but because of higher home prices. The National Association of Realtors reported the median single-family home price is $230,300 up 8.6% from May 2014. Higher home prices makes homes less affordable. The NAR also reported Home Affordability in May 2015 decreased across the United States.

Higher Home Prices

Both home prices and mortgage rates are expected to continue increasing in the coming years. Mortgage rates will move higher because bond yields will move higher as the FOMC increases the fed funds rate. Home prices will move higher because of rising employment and higher wages.

Home prices have recovered from the housing bust and have reached new highs in 10 states according to CoreLogic. The main reason for this is the limited number of homes for sale is driving prices higher in many states. Overall, 33 states are at or within 10 percent of their price peaks.

Weekly Mortgage Rates Report July 14, 2015

Higher Mortgage Rates

30 year mortgage rates today are averaging 4.22 percent, up from the prior week's average 30 year rate of 4.09 percent. As with 15 year rates, 30 year rates are still low historically speaking. Back in May 2007, average 30 year rates were at 6.70 percent. Back in October 1981, 30 year rates were at an astonishing 18.45 percent.

30 year jumbo mortgage rates are currently averaging 4.43 percent, up from the previous week's average 30 year jumbo rate of 3.32 percent. Average jumbo rates are above 4.00 percent but there are lenders still quoting 30 year rates just below 4.00 percent. Right now in our rate database for California we have two lenders quoting 30 year jumbo refinance rates at 3.875 percent with points.

Average 15 year jumbo mortgage rates are currently averaging 3.90 percent, up 10 basis points from last week's average rate. The lowest 15 year jumbo refinance rates available in our rate database for Colorado are at 3.375 percent with 1 points and at 3.50 percent with no points.

Author: Brian McKay
July 14th, 2015