Mortgage Rates Today Surge Higher: 30 Year Conventional Rates Back Above 4.00 Percent
Mortgage rates surged today higher, marching in lockstep with 10 year bond yields which have on a tear recently. Just last week, average 30 year conforming mortgage rates fell to 3.94 percent, that was the first time in six weeks that average rates fell week over week. The good news didn't last as 30 year rates surged 30 basis points higher today and are averaging 4.24 percent.
Historically speaking, current mortgage rates available are still at bargain levels and still way below the highest rates the past decade. The all-time low rate for 30 year conventional lows was at 3.27 percent earlier this year. Current rates are only 1 percent higher from the all-time low. Back in the early 1980's, 30 year rates were at an incredibly high level of 17.25 percent so a rate around 4.25 percent is still a good deal.
Conventional Mortgage Rates Will Surge Higher Next Week
Mortgage interest rates continue to move higher because 10 year bond yields are also moving higher. 10 year bond yields are up another 8 basis points today at 2.50 percent. This means mortgage rates will also move higher over the next several days. Early next week we could see 30 year conventional rates move up to 4.50 percent if bond yields continue to rise.
Just last week 15 year rates declined to 3.14 percent, also the first decline in six weeks. Current rates on 15 year conventional home loans are averaging 3.31 percent. By the end of June, 2013, average 15 year rates quite possibly will move above 3.50 percent and as high as 3.60 percent.
While average conforming mortgage rates are moving higher you still can find lenders quoting both 15 year and 30 year rates below the average. In our rate database right now for the state of California, we have lenders quoting 30 year refinance rates today as low as 3.625 percent with points. The lowest refinance rates without points in our database for CA as still below the average at 3.99 percent.
Jumbo Mortgage Rates Also Move Higher on Higher Bond Yields
Jumbo mortgage rates on both fixed 30 year and 15 year loans have also surged higher this past week. Today's mortgage rates on 30 year jumbo loans are averaging 4.49 percent, an increase from last week's average 30 year rate of 3.34 percent. Earlier in 2013 average 30 year jumbo rates spent many weeks below 4.00 percent but those days are long gone.
In our jumbo rate database for the state of Connecticut we will have three lenders quoting 30 year jumbo refinancing rates below the national average of 4.49 percent. Bank of Internet USA, Rate 30 and Integrity First are all quoting 30 year refi rates at 4.25 percent with 2 mortgage discount points.
Average 15 year jumbo mortgage rates today are at 3.81 percent, a sharp increase from last week's average 15 year jumbo rate of 3.56 percent. The lowest 15 year jumbo refinance rates available in our database for the New Jersey are also below the average. Integrity First is currently quoting 15 year jumbo rates in NJ at 3.125 percent with 2 mortgage points.
Future Direction of Jumbo Rates Next Week
This coming week we expect average 30 year jumbo rates to increase above 4.65 percent and possible move up to 4.75 percent. Average 15 year jumbo mortgage rates will move above 4.00 percent and possibly as high as 4.10 percent, which will be the first time in 2013 that average 15 year rates are above 4.00 percent.
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