Mortgage Rates Increase This Week but Will Decline in the Coming Days
The Fed's program was designed to suppress bond yields and mortgage rates so ending it should send rates higher but that isn't happening yet. Bond yields and stock market futures are down sharply this morning following European stocks lower. By the beginning of next week average mortgage rates will be 0.10 percent to 0.15 percent lower.
Current mortgage rates on 30 year conforming mortgages are averaging 4.21 percent, an increase from last week's average 30 year rate of 4.19 percent. By next Monday average 30 year rates will fall below 4.10 percent and possibly as low as 4.05 percent. While current 30 year rates are above 4.00 percent there are plenty lenders quoting 30 year refinance rates below 4.00 percent with points and without points.
15 year mortgage rates today are averaging 3.29 percent, a slight increase from last week's average 15 year mortgage rate of 3.24 percent. By early next week average 15 year rates will fall below 3.20 percent towards 3.10 percent. There are lenders quoting 15 year refinance rates well below the average rate.
Searching on the rate tables for the state of California we see the lowest 15 year refinancing rate at 2.75 percent with just 0.10 mortgage points. The same lender is also quoting 15 year refi rates in other states with the same rate/point combination. There are also many other lenders quoting 15 year rates below 3.00 percent with different points.
Today's mortgage rates on 30 year jumbo loans are averaging 4.57 percent, a slight decline from last week's average 30 year jumbo mortgage rate of 4.58 percent. Since bond yields are lower average 30 year jumbo rates will also fall in the coming days. We are forecasting 30 year jumbo rates will fall below 4.50 percent by next Monday.
There currently are lenders quoting 30 year jumbo refinance rates below the average rate and one lender quoting rates below 4.00 percent. Checking on rates available we see the lowest rate quoted is at 3.875 percent with 2 mortgage points. The lowest 30 year jumbo refi rates available without points are currently at 4.125 percent.
Average 15 year jumbo mortgage rates are at 3.72 percent, a decline from last week's average 15 year rate of 3.74 percent. The best jumbo refinance rates available on 15 year loans are at 3.375 percent with points. The best 15 year rate without points is at 3.625 percent.
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