Disappointing Jobs Numbers will Force Mortgage Rates Lower

Already low mortgage rates will decline further in the coming days because of an extremely disappointing May jobs report. Markets expected 165,000 jobs were created in May but only 38,000 jobs were created. The bad news on employment sent 10 year bond yields down 14 basis points to 1.70 percent this past Friday.

By the end of this week, we expect average mortgage rates to decline between 5 to 15 basis points. Current 30 year mortgage rates are averaging 3.73 percent, so we could see average 30 year rates fall towards 3.65 percent. Thirty year rates near 3.65 percent hasn't been seen since May of 2013.

15 year mortgage rates today are averaging 2.71 percent, down 5 basis point from last week's average 15 year rate. Over the next week, average 15 year rates will decline towards 2.65 percent. The last time 15 year rates were as low as 2.65 percent was in April 2013.

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.

The decline in fixed long term mortgage rates won't last for long. Eventually the Federal Reserve will increase their key benchmark interest rate, the federal funds rate. Increases in the fed funds rate will drive bond yields higher and in turn will drive mortgage rates higher.

Average 5 year adjustable rates are currently averaging 2.87 percent, a decline from last week's average rate of 2.90 percent. Current 5 year jumbo adjustable mortgage rates are at 3.41 percent, up from last week's average 5 year jumbo rate of 3.29 percent.