Mortgage Rates: Average 30 Year Mortgage Rates Fall to 4.25 percent

Uncertainty in the financial markets in the United States and abroad is causing mortgage rates to move lower. Average 30 year conforming mortgage rates have fallen to 4.25 percent this week, a new low this year. Investors have indirectly forced mortgage rates lower by purchasing U.S. Treasuries.

When investors buy bonds, prices move higher and bond yields move lower. Mortgage lenders tie their rates to long term bond yields, so when bond yields fall, mortgage rates follow lower. Average 30 year mortgage rates started 2014 near 5.00 percent and looked to move above 5.00 percent but now rates might drop as low as 4.00 percent.



Fed's Actions Will Lead to Higher Mortgage Rates in 2014


Everyone believed bond rates and mortgage rates would move higher because the Federal Reserve started tapering their monthly purchases of long term bonds and mortgage-backed securities. The Fed cut their purchases from $85 billion a month to $65 billion a month and will continue slowing their buys throughout 2014.

The Fed's actions will eventually lead to higher mortgage rates sometime in 2014, so if you're thinking of getting a mortgage you should lock in a rate now. Average 30 year rates are at 4.00 percent but there are many lenders quoting 30 year rates with points below 4.00 percent.

Mortgage Rates Fall This WeekLowest 30 Year Mortgage Refinance Rates at 3.75 Percent


The lowest 30 year rates in our database have fallen 0.125 percent this past week. The best 30 year mortgage rates today on our rate table for the state of California are now at 3.75 percent with 2 mortgage points. The two lenders quoting 30 year rates at 3.75 percent are Aimloan.com and Nations Choice Mortgage. We also have five other lenders quoting 30 year rates at 3.875 percent with various point combinations.

The lowest 30 year rates without points on our table are still below the average rate of 4.25 percent. The lowest 30 year refinance rates quoted on our table for CA are currently at 4.00 percent. The three lenders quoting a 4.00 percent rate with no points are Loan Depot, Home Loan Enterprise, and Sebonic Financial.

Today's Mortgage Rates on 15 Year Conforming Loans


15 year mortgage rates have fallen to a new low for 2014 and will continue to move lower this week because of lower bond rates. 15 year conforming mortgage rates today are currently averaging 3.29 percent, a decline from last week's average 15 year mortgage rate of 3.40 percent.

The best 15 year conforming refinance rates available on our rate table have also fallen 0.125 percent this past week. The best 15 year mortgage rates in our database for the state of Massachusetts are currently at 2.75 percent. We have three lenders quoting this rate, Roundpoint Mortgage Company, Aimloan, and American InterBanc.com Mortgage Bankers.

Current 30 Year Jumbo Mortgage Rates


30 year jumbo mortgage rates are back under 4.50 percent, which is also a new low for average 30 year jumbo rates this year. 30 year jumbo rates are averaging 4.41 percent, a decline from the previous week's average 30 year jumbo rate of 4.52 percent. In early January, 30 year jumbo rates were near 5.00 percent but now it looks like rates will head back down to around 4.25 percent.

The best 30 year jumbo refinance rates in our database for the state of Maryland are currently at 4.25 percent with no mortgage points. The two lenders quoting 30 year jumbo rates that low are Citi Mortgage and BB&T Home Mortgage. We also have lenders  in most of the other states quoting 30 year jumbo refi rates as low.

15 Year Jumbo Mortgage Rates Today


Average 15 year jumbo mortgage rates today are down to 3.63 percent, a decline from the prior week's average 15 year jumbo rate of 4.74 percent. 15 year jumbo rates are now at a new low for 2014 but still above the all-time low of 3.27 percent, set just over a year ago.

The best 15 year jumbo refi rates in our database for the state of Connecticut are much lower than the average rate. The lowest quoted rate is currently at 3.125 percent with 1 mortgage point from Merrimack Mortgage Company. The lowest 15 year jumbo rate without points is also from Merrimack Mortgage Company at 3.25 percent.

5/1 Adjustable Mortgage Rates


Adjustable mortgage rates on 5 year loans are currently averaging 3.45 percent, down from last week's average 5 year adjustable mortgage rate of 3.51 percent. Average 5 year rates are around 3.50 percent but there are many lenders quoting 5 year rates more than a full percentage point below the average.

The best adjustable rate in our database for the state of Texas is at 2.375 percent with just over 1 mortgage point. We have two lenders quoting that rate and point combination, Aimloan and Roundpoint Mortgage Company. The lowest 5 year adjustable rate without points on our table for TX is currently at 2.625 percent from Loan Depot.

Jumbo Adjustable Mortgage Rates on 5 Year Loans


5 year jumbo adjustable mortgage rates have fallen back below 3.00 percent this week. Current 5 year jumbo rates are averaging 2.92 percent, which is a decline from last week's average 5 year rate of 3.04 percent.

The best 5 year jumbo rates in our database for the state of New Jersey are currently at 2.50 percent with just under 2 mortgage points. The lowest 5 year loan rates without points for NJ are currently at 2.875 percent, just below the average rate.
 
 
Author: Brian McKay
February 6th, 2014