Mortgage Rates Decline Again this Week, Back Under 4.50%
Mortgage rates decline again this week after heading higher for most of the past 6 months. Average 30 year conforming mortgage rates declined to 4.45 percent, down from the previous week's average rate of 4.53 percent. Mortgage rates hit a 2018 high earlier in June but have fallen three out of the past four weeks.
Although average 30 year mortgage rates are higher this year, the overall increase has only been around 0.50 percent. Historically speaking, 30 year rates in the 4.00 percent range is still low. If you look back a dozen years, 30 year rates were in the 6.00 percent to 7.00 percent range. Looking back even farther, 30 year rates were in the 17 percent range in the early 1980s.
The Federal Reserve has been tightening monetary policy, aka, increasing interest rates. The Fed is widely expected to increase their key bench-mark rate, the fed funds rate, at least two more times this year. Two more increases will put the fed funds rate in a range of 2.50 percent to 2.75 percent.
As the Fed increases rates, U.S. Treasury yields move higher and as a result, lenders increase rates on mortgage loans. If the Fed raises rates a couple of more times this year, it's possible that 30 year conforming rates will hit 5.00 percent by the end of 2018.
Mortgage Rates Decline This Week
Conforming 15 year mortgage rates declined to 3.89 percent, down from last week's average 15 year rate of 3.96 percent. 15 year rates are also higher so far this year, moving up about 0.51 percent from the 2018 low of 3.38 percent set in early January.
5 year adjustable mortgage rates are averaging 4.17 percent, 5 year adjustable mortgage rates decline from the previous week's average rate of 4.18 percent. Average 5 year adjustable rates are up 0.72 percent this year. Shorter term adjustable rates increased more this year than long term rates. This is because short term Treasury Yields have increased more this year than long term yields.
30 year jumbo mortgage rates are averaging 4.61 percent, down from the prior week's average rate of 4.66 percent. Since the start of 2018, average 30 year jumbo rates increased 0.57 basis points from 4.08 percent.
Current mortgage rates on 15 year jumbo loans are averaging 4.52 percent. This is a decline from last week's average 15 year jumbo rate of 4.58 percent. So far this year, 15 year jumbo rates are up 0.56 basis points from the low of 3.96 percent in early January.
5 year jumbo adjustable mortgage rates are averaging 4.25 percent, down from an average rate of 4.31 percent last week. 5 year jumbo rates are up 0.81 percent from the January low of 3.44 percent.
You can search for and compare lenders' mortgage rates and refinance rates in your state by using our rate tables at Mortgage Rates Today.
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