Mortgage Rates Slightly Higher this Week on Strong Economic News
Conforming mortgage rates are slightly higher this week after several weeks of average rates moving lower. Last week, 15 year conforming mortgage rates hit a new all-time record low of 2.56 percent. Average mortgage rates moved higher this week on higher bond yields because of a better than expected employment report that was released last Friday.
Today's mortgage rates on 15 year conventional home loans are averaging 2.71 percent, an increase from the prior week's average rate of 2.64 percent. Current quotes from lenders on our 15 year rate table are much lower than the average rate of 2.71 percent. The lowest 15 year rates currently available are as low as 2.25 percent with points. The lowest rates without points are in the 2.50 percent range, still below the average rate this week.
Low mortgage rates and a healthy housing market are helping the government-sponsored enterprises (GSEs), Freddie Mac and Fannie Mae, repay the United States Treasury billions of dollars they received during the housing collapse. Freddie Mac just reported a record profit of 4.6 billion for the first quarter of 2013. In total both Freddie Mac and Fannie Mae received $170 billion from the U.S. Treasury. So far the GSE's repaid $62 billion back to the Treasury.
Low current mortgage rates and a low number of existing homes for sale have continued to send the median home price higher in the first three months of 2013. The National Association of Realtors reported the median existing single-family home price rose in 133 out of 150 metropolitan statistical areas.
The NAR also reported the national median existing single-family home price was $176,600 in the first quarter, up 11.3 percent from $158,600 in the first quarter of 2012. This is the largest year over year gain since the height of the housing bubble when the average 13.6 percent in the fourth quarter of 2005.
The national average 30 year mortgage rate is averaging 3.52 percent this week, up 10 basis points from last week's average 30 year rate. Although the average 30 year rate is up sharply this week, rates are only 0.25 basis points from the all-time record low of 3.27 percent set late in 2012.
There are lenders that are quoting mortgage rates with points and without points well below the current average of 3.52 percent. If you have a good credit score of 660 or higher, you can easily find lenders quoting rates as low as 3.00 percent with 1.5 to 2 mortgage points. The same credit score will get you rates quoted as low as 3.25 percent without mortgage points.
Today's mortgage rates on 30 year jumbo mortgage loans are averaging 3.91 percent, an increase from last week's record low average rate of 3.87 percent. The lowest 30 year jumbo refinance rates today on our rate tables are around 3.375 percent without points. The lowest 30 year jumbo refi rates without points are also below the average at 3.375 percent.
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