Mortgage Rates Decline this Week: 30 Year Conventional Rates Averaging 3.94%

Average mortgage rates have been on a tear recently and after five weeks of gains, average mortgage rates have finally fallen. 30 year conventional mortgage rates which were at 3.35 percent in early May, rose above 4.00 percent two weeks ago and have since fallen back below 4.00 percent. Mortgage rates today on 30 year conventional loans are averaging 3.94 percent, down from last week's average rate of 4.03 percent.

Mortgage rates moved much higher and well above record lows because 10 year bond yields moved higher. 10 year yields were just above 1.50 percent in early May, hit a recent high of 2.25 percent and have since declined to 2.14 percent. The future direction of both Treasury yields and mortgage rates will hinge on the Federal Open Market Committee's two day meeting this week.

Right after the two day meeting the FOMC will release a statement about future policy direction. While most believe the Fed will keep the federal funds rate at near zero percent they may announce some changes to their asset purchases. Each month the Fed has been buying $40 billion a month in mortgage-backed securities and $45 billion a month in long term U.S. Treasuries to keep long term interest rates low.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

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The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from 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 RateUpdate.com 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.

Lender

APR / Rate

Fees / Points

Payment

NMLS #1835285

5.315%

15-Year Fixed

5.125%

$5,000

Includes 0.750 points for $3,000

Lender Fees: $2,000

$3,190 /mo

Next >

NMLS #401822

5.554%

15-Year Fixed

5.250%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$3,216 /mo

Next >

NMLS #2059741

5.626%

15-Year Fixed

5.490%

$3,536

Includes 0.884 points for $3,536

Lender Fees: $0

$3,267 /mo

Next >

NMLS #1025894

5.756%

15-Year Fixed

5.625%

$3,404

Includes 0.676 points for $2,704

Lender Fees: $700

$3,295 /mo

Next >

NMLS #6606

5.884%

15-Year Fixed

5.740%

$3,732

Includes 0.933 points for $3,732

Lender Fees: $0

$3,320 /mo

Next >

NMLS #1835285

6.356%

30-Year Fixed

6.250%

$4,500

Includes 0.625 points for $2,500

Lender Fees: $2,000

$2,463 /mo

Next >

NMLS #1835285

6.513%

5-Year ARM

6.375%

$5,804

Includes 0.951 points for $3,804

Lender Fees: $2,000

$2,496 /mo

Next >

NMLS #2059741

6.569%

30-Year Fixed

6.490%

$3,312

Includes 0.828 points for $3,312

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1025894

6.721%

30-Year Fixed

6.625%

$3,956

Includes 0.814 points for $3,256

Lender Fees: $700

$2,562 /mo

Next >

NMLS #401822

6.770%

30-Year Fixed

6.625%

$5,995

Includes 1.000 points for $4,000

Lender Fees: $1,995

$2,562 /mo

Next >

NMLS #3030

6.889%

15-Year Fixed

6.750%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,540 /mo

Next >

NMLS #6606

6.960%

30-Year Fixed

6.875%

$3,468

Includes 0.867 points for $3,468

Lender Fees: $0

$2,628 /mo

Next >

NMLS #3030

7.589%

30-Year Fixed

7.500%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$2,797 /mo

Next >

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 and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

The recent run-up in long term Treasury yields and mortgage interest rates is due to the markets believing the Fed will announce a slowing or ending to their purchases. Just the possibly of this happening has already sent rates higher. If the Fed does announce a slowing or end to their buying these assets, rates will shoot even higher.

We could see 10 year bond yields move to 2.50 to 2.75 percent in a matter of weeks or months. 30 year conforming mortgage rates would move to the 4.50 percent to 5.00 percent. The last time 30 year mortgage rates were above 5.00 percent was back in January 2010. A quick increase in mortgage rates would slow down the housing recovery and the economy.

Average 15 year conventional mortgage rates are currently at 3.07 percent, a decline from last week's average 15 year mortgage rate of 3.18 percent. 30 year jumbo mortgage rates are averaging 4.35 percent, an increase from the prior week's average jumbo rate of 4.29 percent. 15 year jumbo rates are averaging 4.35 percent, a decline from last week's average rate of 4.49 percent.