Today’s Mortgage Rates Decline, 30 Year Rates Averaging 4.20%

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Today's mortgage rates moved lower on the heels of lower 10 year bond yields. Last Friday, 10 year bond yields hit a two month high of 2.61 percent but have declined to 2.58 percent yesterday. As a result of lower bond yields average 30 year mortgage rates have fallen to 4.20 percent today, down from a recent high of 4.27 percent on Monday.

Which direction mortgage rates move this week will be up to what the Federal Open Market Committee says. The FOMC concludes its two day meeting on economic policy today. There is a zero percent chance the FOMC will increase the federal funds rate this time around. The big unknown factor is if the FOMC drops it's dovish phrase on leaving interest rates low for a "considerable time."

If the Fed's language on interest rates does change, both short term and long term bond yields will increase. Lender's set mortgage rates based on bond yields. Mortgage rates will higher in the coming days if bond yields increase. If the Fed doesn't drop the considerable time phrase on interest rates, 10 year bond yields will fall below 2.50 percent and average 30 year mortgage rates will fall towards 4.10 percent.

Mortgage rates have been in a tight range for all of 2014, average 30 year rates hit a low of 4.06 percent on September 5th. The high point for average 30 year rates was 4.53 percent in early January. Though average 30 year rates remained above 4.00 percent all year long, there have been lenders quoting 30 year rates below 4.00 percent. The lowest 30 year rates available today on the rate tables are at 3.625 percent with 2 mortgage points.

Mortgage rates today on 15 year conforming loans are averaging 3.27 percent, up from an average 15 year mortgage rate of 4.21 percent. Depending on what the Fed says average 15 year rates could move up towards 3.40 percent or down towards 3.15 percent. The best 15 year refinance rates available right now on the tables are much lower at 2.875 percent with 2 mortgage points.

Listed below are current mortgage rates for both conforming and jumbo mortgages:

Average Conforming Mortgage Rates

  • 30 Year 4.20%

  • 15 Year 3.27%

  • 5/1 ARM 3.53%

Average Jumbo Mortgage Rates

  • 30 Year 4.61%

  • 15 Year

  • 5/1 ARM 3.85%

Lowest Conforming Mortgage Rates

  • 30 Year 3.625% with 2 points

  • 15 Year 2.875% with 2 points

  • 5/1 ARM 2.375% with 2 points

Lowest Jumbo Mortgage Rates

  • 30 Year 3.875% with 2 points

  • 15 Year 3.625% with 1.1 points

  • 5/1 ARM 2.625% with no points

Author: Brian McKay
September 17th, 2014