Refinance Rates Move Lower Today, Expect Lower Rates in 2013
refinance rates moved lower today and will move lower in 2013 as the Federal Reserve continues to purchase mortgage-backed securities in order to drive rates lower. Refinance rates today on 30 year conforming mortgages are averaging 3.38 percent, down 6 basis points from last week's average refinance rate of 3.44 percent. Current refinance rates on 30 year conforming loans are only slightly higher from the 2012 all-time record low of 3.27 percent.
Other factors beside the Fed that could force mortgage refinance rates even lower are the economy and the politicians. If Washington can't come to an agreement to avoid the fiscal cliff and the economy falls back into a recession, bond yields' plummeting will force mortgage rates even lower from the expected declines.
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With a fiscal cliff compromise and no recession, average 30 year mortgage rates will fall as low as 3.25 percent. Without an agreement we could see average 30 year conventional mortgage rates fall as low as 3.00 percent. There are mortgage companies already quoting 30 year mortgage rates below 3.25 percent and believe it or not, below 3.00 percent.
The lowest rates quoted are usually for those who have credit scores of 740 or higher, although you can still get a decent mortgage rate even if your credit score is below 740. Right now on our New Jersey refinance rates list for homeowners with credit scores between 700 and 719, there is a lender quoting 30 year refinancing rates at 2.875 percent with 1.781 mortgage points. The same lender is also quoting 30 year refi rates in NJ at 3.00 percent with 1.781 points for homeowners with credit scores between 660 and 679.
Current refinance rates today on 15 year conventional loans are averaging 2.78 percent, a decline from last week's average 15 year refinance rate of 2.82 percent. In 2013 average 15 year refinance rates will fall to around 2.60 percent with a budget deal and will fall below 2.50 percent if no deal is reached and the economy falls into a recession.
Right now there are mortgage lenders quoting 15 year conventional refinance rates below the average and below 2.50 percent. On our California refinance rates list we have lenders quoting today's refinance rates on 15 year loans as low as 2.25 percent with points for homeowners with credit scores above 740. Rates quoted for those with credit scores less than 740 are still incredibly good - we have one lender quoting 15 year rates also at 2.25 percent with points.
Current refinance mortgage rates on 30 year jumbo loans are averaging 4.02 percent, a decline from last week's average 30 year jumbo mortgage rate of 4.05 percent. Regardless of whether or not there is a recession in 2013, average 30 year jumbo mortgage rates will fall from these levels. Without a recession, 30 year jumbo rates will fall as low as 3.90 percent. With a recession, 30 year jumbo rates will fall to around 3.75 percent.
These days you can already find mortgage companies quoting 30 year jumbo refinance rates below 4.00 percent and even below 3.75 percent if you're willing to buy down the rate by paying points. The lowest California jumbo refinance rate right now on our rate list are at 3.50 percent with 1.25 points for those with credit scores of 680 or higher. The lowest jumbo refi rates without points on our rate list are at 4.00 percent for those with credit scores above 680.
Average 15 year jumbo mortgage rates today are at 3.42 percent, a decline from an average 15 year jumbo mortgage rate of 3.45 percent. In 2013, average 15 year jumbo rates will fall as low as 3.25 percent and below 3.25 percent if there is a recession. Currently we have lenders in Florida quoting 15 year jumbo refi rates as low as 3.125 percent with points for homeowners with credit scores of 740 or higher.
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