Mortgage Rates Steady After Budget and Debt Ceiling Deal

Average mortgage rates remain steady as another budget and debt ceiling crisis was averted in Congress. Near the eleventh hour, cooler (or increasingly desperate) heads prevailed on preventing the United States from defaulting for the first time in history. Economists believe the alternative would have been financial disaster and sharply higher mortgage rates.

30 year conventional mortgage rates today are averaging 4.31 percent, up slightly from last week's average 30 year mortgage rate of 4.27 percent. After running up most of the summer to almost near 5.00 percent, 30 year conforming mortgage rates have retreated the past month.

Crisis Averted, Lower Mortgage Rates Headed Our Way

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

Show Advertiser Disclosure

The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #1835285

5.707%

15-Year Fixed

5.500%

$5,404

Includes 0.851 points for $3,404

Lender Fees: $2,000

$3,269 /mo

Next >

NMLS #1835285

6.620%

30-Year Fixed

6.500%

$5,000

Includes 0.750 points for $3,000

Lender Fees: $2,000

$2,529 /mo

Next >

NMLS #3030

6.658%

15-Year Fixed

6.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$3,485 /mo

Next >

NMLS #1835285

7.132%

5-Year ARM

7.000%

$5,328

Includes 0.832 points for $3,328

Lender Fees: $2,000

$2,662 /mo

Next >

NMLS #3030

7.350%

30-Year Fixed

7.250%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,729 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

Now that another manufactured crisis has been averted, mortgage rates should continue to drift lower from current levels. The government shutdown and the potential for default has hurt the economy and soured consumer sentiment. Depending on how much consumers pull back and how badly the economy has been hit, we could see 30 year rates fall back below 4.00 percent before the end of 2013.

Back in mid September, we were predicting average 30 year mortgage rates would climb above 5.00 percent before the end of 2013. A deal has been reached in Washington but it is a short term deal as we could be back in the same mess in January. The government has been funded until mid-January and the debt ceiling breach has been put off until early February.

Just knowing that we are a few short months away from possibly more pain inflicted by politicians in Washington will keep downward pressure on economic growth. A slower growing economy will force bond rates lower which will in turn force mortgage rates lower.

30 Year Conforming Mortgage Rates Today

30 year mortgage rates are higher this week at 4.31 percent but there are many lenders still quoting 30 year mortgage refinance rates below 4.00 percent. Currently on our rate tables for the state of California we have three different lenders quoting 30 year refinance rates at 3.75 percent with various points.

Our rate tables for California also include 8 more lenders quoting 30 year rates at 3.875 percent with various mortgage points.

What are Mortgage Points and Should I Pay Down the Mortgage Rate by Paying Points?

In  case you're unaware of what mortgage points are, they allow a borrower (mortgagor) the ability to secure a lower rate on a loan by paying the lender (mortgagee) money upfront at closing.  1 mortgage point is equal to 1 percent of the loan amount. So for example, a $500,000 loan that has 1 mortgage point will cost the mortgagee $5,000 that has to be paid at the time of closing on the loan. To figure out whether or not it makes financial sense for you to pay down the mortgage rate with points, you have to take several factors into consideration.

The most important factor to think about is how long you plan to stay in the home. You can compare the months you plan to stay in the home with the monthly savings you will achieve by getting lower mortgage rate with points. The easiest way to figure this out is to compare loans, rates and point combinations, by using our mortgage calculator.

Today's Mortgage Rates on 15 Year Conforming Loans

Average 15 year conforming mortgage rates are also slightly higher this week over last. Today's mortgage rates on 15 year loans are averaging 3.36 percent, up from the prior week's average rate of 3.34 percent. The lowest 15 year refinancing rates in our rate database for the state of  Texas are much lower than the average.

The lowest 15 year refi rates on our list for Texas are at 2.75 percent with points. We have three different mortgage lenders quoting 15 year rates at 2.75 percent with points. The lowest 15 year rates without points are still below the average at 3.00 percent. We have 18 lenders quoting 15 year rates without points that are lower than the average of 3.36 percent.

Current Jumbo Mortgage Rates on 30 Year Loans

Current mortgage rates on 30 year jumbo mortgage loans are averaging 4.51 percent, up slightly from the previous week's average 30 year jumbo mortgage rate of 4.49 percent. The lowest 30 year jumbo refinance rates in our database for the state of Florida are much lower than the average.

The lowest 30 year jumbo rate with points in our database for FL is currently at 3.75 percent. The lowest 30 year jumbo rates without points are still below the average rate at 3.375 percent.

15 Year Jumbo Mortgage Rates Today

15 year jumbo mortgage rates are averaging 3.84 percent, up slightly from last week's average 15 year jumbo mortgage rate of 3.82 percent. The lowest 15 year jumbo rates available right now for the state of New Jersey are currently at 3.25 percent with no points. The lender offering that incredibly low rate with zero mortgage points is Spencer Savings Bank.

Today's Adjustable Mortgage Rates

Average 5 year conforming rates and 5 year jumbo rates didn't change week over week. 5 year conforming rates are averaging 3.50 percent and 5 year jumbo rates are averaging 3.08 percent. We have lenders quoting 5 year adjustable rates below the average for both types of loans.

The best 5 year conforming adjustable rates without points in our database in many different states are at 2.25 percent with points. The lowest 5 year conforming rates without points in our database are still well below the average at 2.50 percent. The best jumbo rates on 5 year loans with or without points are at 2.59 percent from Third Federal Savings & Loan.