Average Mortgage Rates Move Higher, 30 Year Rates Now at 3.94%
Fixed mortgage rates moved higher this week. This is the fourth consecutive week average mortgage rates have increased. Rates were driven higher due to higher bond yields based on fears the Federal Reserve will dial back on their accommodative policy stance. The Federal Reserve has forced mortgage rates down to historic lows by buying $85 billion a month in mortgage-backed securities and long term bonds.
Mortgage rates today on 30 year fixed conforming loans are averaging 3.94 percent, a sharp increase from the previous week's average 30 year mortgage interest rate of 3.73 percent. Average 30 year rates have increased from the all-time record low of 3.27 percent. Historically speaking, rates are still low, so if you're thinking about buying a home you will probably get one of the lowest rates in the past 60 years.
Positive economic news combined with soaring home prices has the markets fearing the Federal Reserve will slow down or stop their purchases. When the Fed stops their purchases, interest rates on long term and mortgage rates will move higher. The markets sense this is eminent, and as a result are already forcing rates higher.
Recent positive economic data includes the Conference Board reporting consumer confidence increased in May and is now at the highest level in over 5 years. Home prices in the S&P/Case-Shiller® 20-city composite index for March rose to its highest reading since November 2008 (seasonally adjusted). Prices in all 20 cities in the index had positive monthly gains with the largest gains in Las Vegas at 3.2 percent.
Fixed conforming 15 year mortgage rates are also at a high point for this year. Average 15 year rates are now at 3.08 percent, a big increase from last week's average 15 year rate of 2.85 percent. This is the first time in 2013 that average 15 year rates are above 3.00 percent though you can still easily find lenders offering 15 year rates below 3.00 percent.
Average 30 year jumbo mortgage rates are currently at 4.18 percent, an increase from last week's average 30 year jumbo rate of 4.00 percent. Mortgage rates today on 15 year jumbo loans are also higher averaging 3.60 percent, up from last week's average rate of 3.47 percent.
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Average Mortgage Rates