Mortgage Refinance Rates Move Higher As We Head Over the Fiscal Cliff

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Boehner's failure to get his own "plan B" passed points to an almost certainly that we are heading over the fiscal cliff. The markets are finally starting to realize this and look to decline again today after Friday's steep decline. Average mortgage refinance rates are higher today but will start to head lower following bond yields lower. Investors will flee equities in the coming days, pile into U.S. Treasuries which will send bond yields and mortgage rates lower.

Fixed conforming 30 year mortgage rates today are averaging 3.44 percent, an increase from Friday's average 30 year mortgage rate of 3.42 percent. Average 30 year conforming mortgage rates are slightly higher from an all-time record low set just over a month ago and will break new lows in 2013 with the uncertainty in Washington and the Federal Reserve continuing to purchase mortgage backed securities (MBS) to force mortgage rates lower.



30 year rates will break through 3.25 percent in 2013 and probably head even lower, though right now you can already find lenders quoting mortgage rates below 3.25 percent. Currently, on our 30 year refinance rates list for the state of Indiana we have one lender offering 30 year refinancing rates at an incredibly low rate of 2.875 percent with 1.935 mortgage discount points. That same lender is also offering 30 year refi rates just as low in many other states, just search for rates in your state and see for yourself.

Current mortgage rates on 15 year conventional loans are also higher today averaging 2.82 percent, an increase from an average 15 year mortgage rate of 2.80 percent. The future direction of 15 year mortgage rates in 2013 will also be lower and rates will make new lows as well. We will probably see average 15 year mortgage rates fall below 2.60 percent and possibly as low as 2.50 percent in the coming months.

The funny thing is you can already find 15 year refinance mortgage rates below the average of 2.82 percent and even below our prediction of 2.50 percent if you're willing to buy down the rate with points. Right now on our 15 year conforming refinance rates list for the state of Texas we have one lender quoting rates as low as 2.25 percent with 1.567 points. The lowest 15 year refinance rate without points on our list is at 2.50 percent.

Average 30 year jumbo mortgage rates currently are at 4.05 percent, an increase from Friday's average 30 year jumbo mortgage rate of 4.01 percent. Average 30 year jumbo mortgage refinance rates have been around 4.00 percent for several months now, the record low set back in November was at 3.94 percent. In 2013 we will see average jumbo rates fall below 4.00 percent again and possibly fall as low as 3.80 percent.

If you live in the state of California and are looking for 30 year jumbo refinance rates we have lenders offering rates well below the average of 4.05 percent. The lowest California refinance rate on our jumbo rate list is at 3.50 percent with 1.375 points. The lowest CA refinance rate without points is at 4.00 percent, jumbo below the average rate. We also have lenders in many other states offering 30 year jumbo rates just as low as 3.50 percent with points.

15 year jumbo mortgage rates today are averaging 3.41 percent, an increase from an average 15 year jumbo mortgage rate of 3.39 percent. Right now on our 15 year jumbo refinance rates list we have several lenders quoting rates well below the average jumbo rate of 3.41 percent. The best rate right now on our list for New Jersey are at 2.625 percent with 1 mortgage point and the best rate without points is at 2.875 percent.
 
Author: Brian McKay
December 24th, 2012