Mortgage Rates Today Increase for the Third Consecutive Week

Follow by Email
Facebook
Twitter
LinkedIn
Mortgage rates today increased making this the third consecutive week that average 30 year mortgage rates are higher in the Primary Mortgage Market Survey released by Freddie Mac. Positive economic news pointing to stronger growth along with lower inflation sent Treasury yields higher which in turn sent current mortgage rates higher as well.

In the PMMS survey average 30 year mortgage rates increased to 3.62 percent with 0.6 mortgage points for the week ending August 16, 2012. The average 30 year mortgage rate is up from last week's average of 3.59 percent.



Right now on our 30 year conforming refinance rates list there are lenders offering 30 year refi rates as low as 3.25 percent with points. You can search for refinancing rates in the state you live in to find lenders offering rates below the averages.

Normally lower inflation data would send bond yields lower but not this time as investors see low inflation and stronger growth as a sign that the Fed will not start another round of quantitative easing. This is why bond yields moved up on the economic news that was released.

The 12-month growth in the core consumer price index fell for the second month to 2.1 percent in July. Industrial production rose 0.6 percent in July compared to a 0.1 percent increase in June and retail sales jumped 0.8 percent in July from a 0.7 percent decline in June.

These three positive reports have sent bond yields up to 1.82 percent today. In late July 10 year bond yields hit an all-time record low of 1.39 percent during the day. Now rates have increased more than 40 basis points in just three weeks.

Today's mortgage rates on fixed conforming 15 year loans are averaging 2.96 percent. In Freddie Mac's survey 15 year mortgage rates averaged 2.88 percent with 0.6 points, up from last week's average 15 year mortgage rate of 2.84 percent.

Currently on our 15 year refinance rates table in California there are lenders offering 15 year refinancing rates as low as 2.375 percent with points. Depending on the state you live in you'll find lenders offering different refi rates for the same types of loans.

Current mortgage rates on adjustable mortgage loans are mixed. The average 5 year adjustable mortgage rate is at 2.76 percent with 0.6 points, down from last week's survey that had the average 5 year adjustable mortgage rate at 2.77 percent.

Current refinance rates today on our rate tables are below the average rate. Right now there are lenders advertising 5 year adjustable refi rates as low as 1.88 percent. Search for refinance mortgage rates in your state to see rates as low as 1.88 percent.

Today's mortgage rates on 1 year adjustable mortgage loans are averaging 2.69 percent with 0.4 mortgage points, up from last week's average 1 year adjustable mortgage rate of 2.65 percent.
 
Author: Brian McKay
August 16th, 2012