Mortgage Rates Fall Again This Week: Lowest 30 Year Refinance Rates at 3.50%

30 year mortgage rates are lower again this week, falling back below 4.00 percent. Mortgage rates will continue to move lower in the coming days as a result of lower U.S. bond yields. 10 year bond yields declined below 2.00 percent yesterday and the decline will send 30 year mortgage rates down another 5 to 10 basis points in the next few days.

Lower bond yields and mortgage rates can be attributed to the decline in equity markets across the globe. Sharp declines in markets have sent investors into the safely of U.S. bonds. As bond prices move higher, bond yields move lower. Lenders tie mortgage rates to 10 year bond yields so when yields decline, mortgage rates also decline.



Mortgage rates today on 30 year loans are averaging 3.89 percent, down from last week's average 30 year rate of 4.00 percent. Average rates are at 3.89 percent but there are many lenders quoting rates below the average. The lowest 30 year conforming rates in our rate database are quoted at 3.50 percent with points.

Low mortgage rates are continuing to help the housing market recover. The National Association of Realtors reported total existing-home sales rose 2 percent in July to a seasonally adjusted annual rate of 5.59 million. Existing home sales are up 10.3 percent above a year ago and are at the highest pace since February 2007.

Not only are home sales higher, home prices are also moving higher. A strong jobs market combined with a low number of homes available for sale are driving prices sharply higher. The NAR reported the median existing-home price for all housing types was $234,000 in July, up 5.6 percent above a year ago.

Weekly Mortgage Rate Report August 25, 2015

Conforming Mortgage Rates

• 30 year mortgage rates are averaging 3.89 percent, down from last week's average rate of 4.00 percent.


• 15 year mortgage rates are averaging 2.93 percent, down from 3.03 percent the prior week


• 5 year adjustable mortgage rates are averaging 3.11 percent, down from 3.24 percent last week.

Jumbo Mortgage Rates

• 30 year jumbo mortgage rates are currently averaging 4.23 percent, down from the previous week's average of 4.28 percent.


• 15 year jumbo mortgage rates are averaging 3.74 percent, a decline from last week's average of 3.79 percent.


• 5 year jumbo adjustable mortgage rates are averaging 3.71 percent, a sharp decline from last week's average of 3.92 percent.

Lowest Refinance Rates Available in the Rate Database August 25, 2015

Conforming Refinance Rates

• 30 year refinance rates at 3.50 percent with 2 mortgage points


• 20 year refinance rates at 3.25 percent with 2 mortgage points


• 15 year refinance rates at 2.625 percent with 2 mortgage points


• 10 year refinance rates 2.50 percent with 2 mortgage points


• 10 year adjustable refinance rates at 3.25 percent with 0 points


• 7 year adjustable refinance rate at 2.75 percent with 1 mortgage point


• 5 year adjustable refinance rates at 2.50 percent with 1 mortgage point


• 3 year adjustable refinance rate at 1.99 percent with 0 mortgage points

Jumbo Refinance Rates

• 30 year jumbo refinance rates at 3.625 percent with 0.75 mortgage points


• 15 year jumbo refinance rates at 2.875 percent with 1.10 mortgage points


• 10 year jumbo adjustable refinance rates at 2.875 percent with 1.10 mortgage points


• 7 year adjustable refinance rates at 2.75 percent with 0.88 mortgage points


• 5 year adjustable refinance rates at 2.375 percent with 1.10 mortgage points


• 3 year adjustable refinance rate at 1.99 percent with 0 mortgage points

Search for the best mortgage rates in your state by searching our rate database here: MonitorBankRates.com/Mortgages