Mortgage Rates Today Lower After the Government Shutdown

Mortgage rates today are lower thanks to averting a default on the nation's debt and the Federal Government finally reopening for business. Mortgage rates followed U.S. bond rates lower as a result of the deal reached between some Republicans and Democrats.  Mortgage rates will continue to drift down from current levels in the short term because of the bite the government shutdown has taken out of the economy. Standards & Poor's estimates the 16 day government shutdown took a $24 billion bite out of the economy and negatively affected GDP growth by 0.6 percent.

Another factor that will keep a lid on mortgage rates moving higher is that the short term deal is just that - only a short term deal. There could be another fight over the same issues early in 2014. I expect average 30 year conforming mortgage rates will fall back under 4.00 percent by the end of 2013.

Future Direction of Mortgage Rates in 2013 and 2014

The direction of rates has completely turned around since summer when it looked like 30 year rates would break above 5.00 percent by the end of 2013. Analysts believed by the summer of 2014, average 30 year rates would be around 5.50 percent and at the end of 2014 move above 6.00 percent.

30 year rates at 6.00 percent seems high when average 30 year rates today are at 4.23 percent but historically speaking, 6.00 percent is low. Since the housing market is fragile and still recovering, a sharp uptick could derail the housing recovery. 5.00 percent average mortgage rates by the end of 2013 is unlikely now.

Mortgage Rates Today Lower Post Government ShutdownAverage 30 Year Conforming Mortgage Rates

30 year conforming rates are averaging 4.23 percent this week, down from the previous week's average 30 year rate of 4.28 percent. This coming week 30 year rates will probably move down to the 4.20 percent range and possibly as low as 4.15 percent. Currently, you can find lenders quoting 30 year refinance rates below 4.00 percent with mortgage points.

The lowest 30 year refinance rates in our rate database are currently at 3.75 percent with points. Depending on the state you search for, you can find rates quoted at 3.75 percent with 1.113 mortgage points or 2.00 mortgage points. We also have several lenders quoting 30 year refinancing rates at 3.875 percent with as high as 2.00 points or as low as 0.00 points.

15 Year Mortgage Rates Today

Average 15 year conventional mortgage rates today are at 3.30 percent, down from the prior week's average 15 year mortgage rate of 3.35 percent. 15 year rates have come down significantly the past month. In early September it looked as if 15 year rates would break above 4.00 percent. Now rates are headed down towards 3.00 percent.

I always recommend if it's financially feasible, get a 15 year loan instead of a 30 year loan because of the huge savings on interest alone. Obviously, the drawback to a 15 year loan is the monthly mortgage payments will somewhat be higher, but not double. If you can afford the higher payments, you'll save tens of thousands or even hundreds of thousands of dollars in mortgage interest. To figure out how much you can save use our mortgage calculator.

The lowest 15 year mortgage refinance rates in our database right now are much lower than the average rate. There are many lenders quoting 15 year rates at either 2.75 percent with points or 2.875 percent with points. The lowest rate we have without points is also at 2.875 percent.

Today's 30 Year Jumbo Mortgage Rates

Average 30 year jumbo mortgage rates are currently at 4.43 percent, down from last week's average 30 year jumbo mortgage rate of 4.47 percent. Back on September 6, 30 year jumbo rates averaged 4.86 percent and looked to move above 5.00 percent. Now rates are back below 4.50 percent and will probably move towards 4.25 percent in the coming weeks.

The best jumbo mortgage rates quoted right now are below the average rate of 4.43 percent. The best jumbo mortgage rate today in our database with points is at 4.00 percent with 1.716 mortgage points. The best jumbo refinance rate without points today is also below the average at 4.125 percent.

Current 15 Year Jumbo Mortgage Rates

15 year jumbo mortgage rates are averaging 3.81 percent, a decline from the previous week's average 15 year jumbo rate of 3.86 percent. Just over a month ago average 15 year jumbo rates were above 4.00 percent averaging 4.18 percent. In the coming week's average 15 year rates will fall below 3.65 percent.

The best 15 year jumbo rates on our rate list are from one of the biggest credit union's around. Pentagon Federal Credit Union's mortgage rates on 15 year jumbo loans are quoted at 3.125 percent with 1.25 mortgage points. The lowest 15 year jumbo refi rates without points on our list are at 3.625 percent, still below the average rate.

5 Year Adjustable Mortgage Interest Rates

Average 5 year conforming adjustable mortgage rates are currently at 3.48 percent, down from last week's average 5 year adjustable mortgage rate of 3.51 percent. The best 5 year adjustable refinance rates considerably lower than the average rate. The lowest rate we have is at 2.125 percent with 2.00 points. The lowest rate without points is at 2.50 percent.

5 year adjustable jumbo mortgage rates are at 3.03 percent, down from an average 5 year jumbo rate of 3.06 percent. The best jumbo rates on 5 year adjustable loans in our database are at 2.25 percent with 2 mortgage points. The best rate without points are at 2.625 percent.
Author: Brian McKay
October 20th, 2013