Record Low Mortgage Rates are History as Fixed Rates Soar 50 Basis Points

Record low mortgage rates are a thing of the past as rates continue to march higher this week. Average 30 year mortgage rates broke above 4.00 percent in a big way and soared an incredible 53 basis points. Mortgage rates today on 30 year conforming loans are averaging 4.51 percent, up from last week's average rate of 3.98 percent.

Current mortgage rates on 15 year fixed conforming loans surged almost 50 basis points this week. The average 15 year conforming rate is at 3.57 percent, up almost 50 basis points from last week's average rate of 3.09 percent. Fixed conforming rates moved higher this week due to 10 year bond yields also moving sharply higher. 10 year bond yields were averaging 2.20 percent last week are now averaging 2.55 percent.

30 Year Mortgage Rates Move Above 4.00 Percent as we Predicted

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

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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

5.315%

15-Year Fixed

5.125%

$5,000

Includes 0.750 points for $3,000

Lender Fees: $2,000

$3,190 /mo

Next >

NMLS #401822

5.554%

15-Year Fixed

5.250%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$3,216 /mo

Next >

NMLS #2059741

5.626%

15-Year Fixed

5.490%

$3,536

Includes 0.884 points for $3,536

Lender Fees: $0

$3,267 /mo

Next >

NMLS #1025894

5.756%

15-Year Fixed

5.625%

$3,404

Includes 0.676 points for $2,704

Lender Fees: $700

$3,295 /mo

Next >

NMLS #6606

5.884%

15-Year Fixed

5.740%

$3,732

Includes 0.933 points for $3,732

Lender Fees: $0

$3,320 /mo

Next >

NMLS #1835285

6.356%

30-Year Fixed

6.250%

$4,500

Includes 0.625 points for $2,500

Lender Fees: $2,000

$2,463 /mo

Next >

NMLS #1835285

6.513%

5-Year ARM

6.375%

$5,804

Includes 0.951 points for $3,804

Lender Fees: $2,000

$2,496 /mo

Next >

NMLS #2059741

6.569%

30-Year Fixed

6.490%

$3,312

Includes 0.828 points for $3,312

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1025894

6.721%

30-Year Fixed

6.625%

$3,956

Includes 0.814 points for $3,256

Lender Fees: $700

$2,562 /mo

Next >

NMLS #401822

6.770%

30-Year Fixed

6.625%

$5,995

Includes 1.000 points for $4,000

Lender Fees: $1,995

$2,562 /mo

Next >

NMLS #3030

6.889%

15-Year Fixed

6.750%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,540 /mo

Next >

NMLS #6606

6.960%

30-Year Fixed

6.875%

$3,468

Includes 0.867 points for $3,468

Lender Fees: $0

$2,628 /mo

Next >

NMLS #3030

7.589%

30-Year Fixed

7.500%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$2,797 /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.

We predicted average 30 year mortgage rates would move above 4.50 percent but not as high as 4.50 percent in one week. This is the first time since July 11, 2011 that average 30 year rates are above 4.50 percent. The recent sharp run-up in mortgage rates has slowed demand for refinance loans but demand for loans for home purchases continues to move higher.

In EllieMae's May Origination Insight Report, the percentage of home loans for a home purchase was 42 percent and the percentage for a refinance was at 58 percent. Back in January's report, the percentages were 27 percent for a home purchase and 73 percent for a refinance. During that time, average 30 year mortgage rates moved up from an average of 3.45 percent to 4.51 percent today, an increase of over 100 basis points in just 6 months.

Mortgage Rates are Higher but Still Low Historically Speaking

Granted, mortgage rates have moved sharply higher in 2013, higher than most people anticipated, but rates are still low when compared to just a few years ago. Back in 2010, 30 year rates were above current levels and if you go back to the height of the housing bubble, average rates were in above 6.00 percent.

This coming week, average rates will continue their upward trend since 10 year U.S. Treasury yields continue to move higher. In the beginning of May, 10 year yields were around 1.60 percent. This morning 10 year yields are up another 3 basis points, averaging 2.55 percent - a very sharp increase in just over a month.

Jumbo Mortgage Rates Move Higher

Average 30 year mortgage rates will move to 4.75 percent and average 15 year rates will move to 3.75 percent. Jumbo mortgage rates also moved higher this past week but not as sharply as conforming rates. 30 year jumbo mortgage rates today are averaging 4.67 percent, 34 basis points higher from last week's average of 4.33 percent.

Today's mortgage rates on 15 year jumbo loans are now just below 4.00 percent at 3.99 percent. Last week average 15 year jumbo rates were at 3.67 percent. This coming week average 15 year jumbo rates will move above 4.00 percent and as high as 4.15 percent. Average 30 year jumbo rates will move towards 4.80 percent.

Average 5 Year Adjustable Mortgage Interest Rates

Short term adjustable mortgage rates moved higher this week as both 5 year conforming and jumbo rates are now above 3.00 percent. Average 5 year conforming mortgage rates are at 3.37 percent, up from the prior week's average 5 year rate of 2.85 percent. 5 year jumbo adjustable mortgage rates are averaging 3.22 percent, up from last week's average 5 year jumbo rate of 2.98 percent.