Mortgage Rates Set to Move Lower on QE3

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As we expected last week a weak unemployment report was released which should set the stage for the Federal Open Market Committee (FOMC) to start a third round of quantitative easing to drive bond yields and mortgage rates even lower. Current mortgage rates on 30 year loans are right above record lows set in July and will head down after the FOMC meets this week.

The meeting is being held on Wednesday and Thursday of this week. Right after the second day's meeting the Fed will release a statement on economic policy. You can be sure we will hear more of the same that current economic conditions warrant exceptionally low interest rates until the end of 2014. That has been the Fed's policy for several years now ever since the Great Recession.
Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 06101, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed Mortgage Loan from Better.com
Better.com
https://www.brimg.net/system/img/inst/9722_logo.gif
300000
Refinance
4.125
4.125
USD
Better.com Logo
NMLS # 330511
State Lic # ML-330511
at 0.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: None
Thank you for your quote. 
 
30 yr fixed mtg refi Mortgage Loan from First National Bank of Omaha
First National Bank of Omaha
300000
Refinance
4.575
4.500
USD
First National Bank of Omaha
4.575%
4/19/2019
4.500%
at 0.625 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $752
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.403
4.375
USD
Citizens Bank, NA
4.403%
4/19/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $998
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.365
4.250
USD
Bank of America
4.365%
4/15/2019
4.250%
at 0.903 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $1,351
 
 
30 yr fixed mtg refi Mortgage Loan from TD Bank, NA
TD Bank, NA
300000
Refinance
4.154
4.125
USD
TD Bank, NA
4.154%
4/16/2019
4.125%
at 0.000 pts
45 day lock rate
Est payment: $1,453.95
Fees in APR: $1,043
 
 
30 yr fixed mtg refi Mortgage Loan from Savings Bank of Danbury
Savings Bank of Danbury
300000
Refinance
4.397
4.375
USD
Savings Bank of Danbury
4.397%
4/19/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $790
 
 
30 yr fixed mtg refi Mortgage Loan from The Washington Trust Company
The Washington Trust Company
300000
Refinance
4.155
4.125
USD
The Washington Trust Company
4.155%
4/16/2019
4.125%
at 0.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: $1,083
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.557
4.500
USD
Santander Bank, N.A.
4.557%
4/19/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.155
4.125
USD
LincolnWay Community Bank
4.155%
4/16/2019
4.125%
at 0.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: $1,085
 
 
30 yr fixed mtg refi Mortgage Loan from The Guilford Savings Bank
The Guilford Savings Bank
300000
Refinance
4.291
4.250
USD
The Guilford Savings Bank
4.291%
4/19/2019
4.250%
at 0.250 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $719
 
 
30 yr fixed mtg refi Mortgage Loan from Liberty Bank
Liberty Bank
300000
Refinance
4.169
4.125
USD
Liberty Bank
4.169%
4/19/2019
4.125%
at 0.250 pts
60 day lock rate
Est payment: $1,453.95
Fees in APR: $814
 
 
30 yr fixed mtg refi Mortgage Loan from UniBank for Savings
UniBank for Savings
300000
Refinance
4.536
4.500
USD
UniBank for Savings
4.536%
4/19/2019
4.500%
at 0.250 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $500
 
 
30 yr fixed mtg refi Mortgage Loan from Union Savings Bank
Union Savings Bank
300000
Refinance
4.399
4.375
USD
Union Savings Bank
4.399%
4/12/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $852
 
 
30 yr fixed mtg refi Mortgage Loan from United Bank
United Bank
300000
Refinance
4.276
4.250
USD
United Bank
4.276%
4/16/2019
4.250%
at 0.000 pts
30 day lock rate
Est payment: $1,475.82
Fees in APR: $911
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.






What the markets are hoping for is the Fed will say they are starting around around of easing to drive interest rates lower. Traditionally in a slow economy the Fed would lower borrowing costs to spur economic activity but the Fed funds rate is already at a targeted range of zero percent to one quarter percent so the Fed has to use other means to spur activity.

What the Fed can do is buy long term Treasuries to drive mortgage rates even lower. The Fed and do this by using money that is getting back from mortgage backed securities that it bought in the first two rounds of quantitative easing. The Fed can also do the "twist" again, selling short term Treasuries and buying back long term Treasuries to drive long term interest rates lower. If the Fed decides to wait for more negative economic news before acting on more easing you can bet the equities markets will tumble.

Mortgage rates today on 30 year conforming loans are averaging 3.51 percent, a decline from an average 30 year mortgage rate of 3.53 percent set yesterday. If the Fed does start another round of easing we would see average 30 year mortgage rates move down to the 3.35 percent range and possibly lower.

Today you can already find lenders advertising 30 year mortgage rates and refinance rates below the average rate of 3.51 percent, especially if you're willing to pay points. Right now there are a couple of lenders offering 30 year refinance rates at 3.13 percent with points on our rate tables.

Don't want to pay points? You can still get an incredibly low 30 year refinance rate at 3.25 percent depending on the state you live in. Just a few years ago average 30 year mortgage interest rates were a lot right in the 6 percent 7 percent range. If we do see lower mortgage rates in the coming weeks and months you might be able to find a lender offering 30 year rates under 3.00 percent. That would be an incredibly low if you ask me.

Average 15 year conforming mortgage rates are at 2.88 percent today, down from an average 15 year mortgage rate of 2.90 percent. If we see action by the Fed average 15 year mortgage rates would move as low as 2.70 percent. Right now on our 15 year refinance rates list in North Carolina there is one lender, Amerisave, offering 15 year refinance rates at 2.38 percent with 1.977 points so if the Fed acts some lenders might start offering 15 year refinance rates at 2.00 percent. If I ever see a 15 year rate that low I would jump at the chance to lock the rate in for 15 years!

Jumbo mortgage rates today on 30 year loans are averaging 4.19 percent, a decline from an average 30 year jumbo mortgage rate of 4.21 percent. If you're in Connecticut looking for 30 year jumbo refinance rates we have several lenders listed offering 30 year jumbo refinancing rates at 3.75 percent with points. 30 year jumbo refi rates without points can be found as low as 3.88 percent.

Current mortgage rates on 15 year jumbo home loans are averaging 3.39 percent, down from an average 15 year jumbo mortgage interest rate of 3.42 percent. Also on our CT refinance rates list you can find lenders offering 15 year refi rates at 2.88 percent with points. Without points there are lenders offering rates as low as 3.13 percent.

5 year conventional mortgage rates are averaging in at 2.89 percent, higher than Friday's average 5 year conventional adjustable mortgage rate of 2.84 percent. Searching our 5 year adjustable refinance rates list for Nevada I see one lender advertising 5 year adjustable mortgage refinance rates at 2.13 percent with 2 mortgage points. If you don't want to pay any points we have lenders listed offering rates at 2.25 percent with zero points.

Jumbo adjustable 5 year mortgage rates are averaging in at 2.84 percent, down from an average 5 year jumbo mortgage rate of 2.85 percent. Right now on our 5 year jumbo refi list for Virginia there is a lender offering rates as low as 2.38 percent wit 0.90 points. Without points the lowest jumbo rate is at 2.63 percent.
 
Author: Brian McKay
September 10th, 2012