Mortgage Rates Jumped This Week on Strong Growth

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Conforming mortgage rates jumped this week on strong job growth and consumer credit growth. Average 30 year mortgage rates are at the highest point in over a month, currently averaging 4.50 percent. Last week, average 30 year rates were averaging 4.41 percent.

The Federal Reserve reported that consumer credit for the month of July nearly doubled to 5.1 percent on a seasonally adjusted basis. For the month of June, consumer credit only increased 2.6 percent. The August employment report showed the U.S. added 201,000 jobs in August. Estimates were for the creation of 191,000 jobs.
Loan Type
Purchase    Refinance
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Loan Amt Points FICO % Down
  
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in 06101, 2, 740    Sort by:
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APR
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PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/16/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from New American Funding
New American Funding
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111741.gif
300000
Purchase
3.524%
3.375%
USD
New American Funding Logo
NMLS # 6606
10/16/2019
at 1.875 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $5,625
Direct lender specializing in helping you save money on your home loan.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/16/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.






All of this good news sent bond yields higher, which in turn sent mortgage rates higher. Although mortgage rates increased this year, rates are not much higher than the 2018 lows. At the beginning of 2018, average 30 year rates were at 3.99 percent, about 50 basis points lower than current levels.

mortgage rates jumpedMortgage Rates Jumped


Conforming 15 year mortgage rates today are at 3.80 percent. A week ago, average 15 year rates were at 3.72 percent. Back in January, average 15 year rates were at 3.45 percent, only 25 basis points lower than the current rate.

30 year jumbo mortgage rates are currently averaging 4.53 percent, up from the prior week's average 30 year rate of 4.46 percent. Jumbo mortgage rates are also higher this year but the increases have been smaller than conforming rates. The lowest point for 30 year jumbo rates this year was during the first quarter when rates were at 4.24 percent, only .22 basis points from the current rate.

Current mortgage rates on 15 year jumbo loans are averaging 4.45 percent. This is up from last week's average rate of 4.41 percent. The lowest average 15 year rate in 2018 was in January when rates were at 4.18 percent. Mortgage rates are expected to continue to increase because the Federal Reserve is increasing the fed funds rate. A higher fed funds rate leads to higher bond yields which force lenders to increase mortgage rates.
 
Author: Brian McKay
September 14th, 2018