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Find Mortgage Rates & Refinance Rates in Your State or AreaFirst Mortgage Direct is now quoting 30 year mortgage rates at 4.50 percent with 1 mortgage point. This is a very competitive mortgage rate and below the current average 30 year mortgage rate of 4.61 percent. Mortgage rates haven’t moved higher in 2014 despite the Federal Open Market Committee continuing to reduce the latest round of quantitative easing. In last week’s committee meeting, the Fed decided to reduce their purchases of mortgage-backed securities and long term bonds by another $10 billion a month. Since the beginning of the year, the amount the Fed has been purchasing has gone from $85 billion a month down to $55 billion a month and they plan to continue reducing the amount throughout 2014. Mortgage rate analysts believed the Fed reducing their purchases would send mortgage rates higher but that hasn’t happened…yet. 30 year mortgage rates today are averaging 4.33 percent, down from last week’s average 30 year mortgage rate of 4.36 percent. Back on January 1, 2014, average 30 year mortgage rates were actually higher at 4.56 percent. Average mortgage rates will eventually move higher in 2014 but not by much. The Mortgage Bankers Association is predicting average 30 year rates will hit 5.00 percent by the end of the year. Current mortgage rates on 15 year conforming loans are averaging 3.36 percent this week, unchanged from last week’s average 15 year mortgage rate. So far during 2014, average 15 year mortgage rates have also moved lower. On January 1st of this year, 15 year mortgage rates were averaging 3.57 percent. Today’s mortgage rates on 30 year jumbo mortgage loans are currently averaging 4.74 percent, a sharp increase from last week’s average 30 year jumbo mortgage rate of 4.39 percent. The sharp increase is only temporary and average 30 year jumbo mortgage rates will fall back below 4.50 percent this coming week. 30 year jumbo rates are higher this week but overall lower for 2014. 30 year rates are only up 10 basis points. On January 1st, average 30 year jumbo rates were at 4.64 percent. These rates are only average rates, as there are many lenders quoting 30 year jumbo rates well below the average. Lenders in our database are currently quoting 30 year jumbo refinance rates as low as 4.125 percent with 2 mortgage points. 15 year jumbo mortgage rates today are averaging 4.17 percent, down from last week’s average 15 year jumbo mortgage rate of 4.20 percent. Average 15 year jumbo rates were slightly lower at the beginning of the year, back on January 1, when average 15 year rates were at 3.89 percent. The best 15 year jumbo refinance rates in our database are much lower at 3.50 percent with 1.10 mortgage points. 5/1 conforming adjustable mortgage rates are averaging 3.37 percent, down from last week’s average 5 year adjustable mortgage rate of 3.40 percent. Average 5 year conforming adjustable rates are also lower this year. Back on January 1st, average 5 year rates were at 3.74 percent. The best adjustable refinance rates in our database are more than 1.00 percent lower. The lowest rates quoted in our database this week are at 2.375 percent with 1.912 mortgage points. Jumbo adjustable mortgage rates on 5/1 loans are currently averaging 3.54 percent, up sharply from last week’s average 5 year jumbo rates of 2.92 percent. As with 15 year jumbo rates, 5 year adjustable rates will decline next week and will probably be around the 3.00 percent level. At the beginning of 2014, average 5 year jumbo adjustable rates were at 3.02 percent. The lowest 5 year jumbo refi rates quoted by lenders in our database are at 2.625 percent with 1.10 points.
Demand for mortgages declined this past week due to higher mortgage rates and the holiday shortened week. Current mortgage rates on 30 year conventional loans increased 0.10 percent to 4.33 percent today. As a result of higher mortgage rates, loan demand declined 12.8 percent from the week before, according to the Mortgage Bankers Association. While mortgage rates today are higher than they were just a month ago, rates are still incredibly low. A conforming 30 year mortgage rate under 4.50 percent is a really low rate. In fact, there are lenders offering mortgage rates even lower than the average 30 year rate. Right now in our database we have lenders quoting 30 year mortgage rates under 4.00 percent with points. Higher Mortgage Rates This Week Zap Refinance DemandUnfortunately for homeowners looking to refinance, higher rates makes refinancing less attractive. In the MBA report this week, applications to refinance fell the most – down 18 percent week over week, to the lowest level since the first week of September. Slightly higher mortgage rates haven’t killed demand for loans when it comes to home purchases. Mortgage applications to purchase a home fell only 4 percent. Seasonally speaking, this time of year the demand for mortgage loans generally slows down as homebuyers and sellers wait for the new year. Today’s Mortgage Rates on Jumbo Mortgages30 year jumbo mortgage rates are averaging 4.46 percent today, an increase from last week’s average 30 year jumbo mortgage rate of 4.41 percent. If you’re shopping for jumbo rates, we have lenders in our database quoting rates below the average and below 4.00 percent, depending on the state in which you live. Today’s mortgage rates on 15 year jumbo mortgage loans are slightly higher this week, averaging 3.74 percent. Last week’s average 15 year jumbo mortgage rate was lower at 3.69 percent. The lowest 15 year jumbo rates in our database are lower than the average, which is around 3.25 percent. Refinance to a 15 Year Mortgage Instead of Another 30 Year MortgageToday’s mortgage rates on 15 year conforming mortgages also rose this week to 3.46 percent, an increase from the previous week’s average 15 year mortgage rate of 3.36 percent. If you’re thinking about refinancing a 30 year loan, have you considered refinancing to a shorter term loan? Refinancing from a 30 year loan to a 15 year or even 10 year loan will save you an incredible amount of money in the form of interest payments. On a $400,000 loan you will save hundreds of thousands of dollars in interest payments with a 15 year loan instead of a 30 year loan. Using our mortgage calculator to compare the difference on a $400,000 loan, the total mortgage interest payments on a 30 year loan with a rate of 4.33 percent comes to $315,153.34. For a 15 year $400,000 loan with a rate of 3.46 percent, the total interest payments come to $113,302.34. That is savings of $201,851.00! The one drawback to a 15 year loan over a 30 year loan is that your monthly payments will be higher. Using the example above, the monthly payment on the 30 year loan is $1,986.54, whereas the monthly payment on a 15 year loan is $2,851.68. The difference of $865.14 a month may well be worth it. Mortgage rates have been on the decline for a few months now after hitting 2013 highs over the summer. Average conforming 30 year mortgage rates hit 4 month lows last week and are now averaging 4.23 percent. 30 year rates are higher than last week’s average of 4.15 percent. Mortgage Rates are Still Low and Will Remain Low for NowOverall mortgage rates are higher from the record lows that were set early in 2013 but historically speaking, rates are still low. Higher rates in 2013 combined with home prices rising 12% over the past 12 months have made homes less affordable than they were in 2012. While home affordability has declined as mortgage rates and home prices have increased, homes are still more affordable than during the housing bubble. Home Affordability Falls to 5 Year LowLawrence Yun, The National Association of REALTORS® chief economist, said “Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” he said. “Expected rising mortgage interest rates will further lower affordability in upcoming months. Next month we may see some delays associated with the government shutdown.” The rate of home price appreciation can’t be sustained simply because personal income growth doesn’t support it. Income growth over the past 12 months was only 1.5 percent, much lower than the home price growth of 12 percent. Home prices have increased 12 percent because home prices are bouncing back from depressed prices since the housing bust. Home Price Appreciation to Return to Historical NormOver the next several years, home price appreciation will return to the historical norm of 1 percent higher than the inflation rate. The current inflation rate is at 1.7 percent and will remain around 2.00 percent for years to come. The Federal Reserve’s target rate for inflation is 2 percent so home price increases will be in the 3 percent range. 15 Year Mortgage Rates Today
By the end of November, average 15 year mortgage rates will fall below 3.00 percent and possibly as low as 2.85 percent. Although the average 15 year rate is still above 3.00 percent, you can find many lenders quoting 15 year refinance rates below 3.00 percent. Currently, the lowest 15 year refinance rates in our database are at 2.75 percent with points. The best 15 year refi rates without points right now are exactly at 3.00 percent. Current 30 Year Jumbo Mortgage RatesCurrent mortgage rates on 30 year jumbo loans are averaging 4.44 percent, an increase from last week’s average 30 year jumbo mortgage rate of 3.35 percent. We expect 30 year jumbo rates to remain below 4.50 percent for the rest of 2013 and possibly fall to the 4.00 percent level. Searching for the best jumbo rates in our database, the lowest rate is exactly at 4.00 percent with two mortgage points. The lowest 30 year jumbo refi rates available without points are still below the average at 4.125 percent. Today’s Mortgage Rates on 15 Year Jumbo LoansToday’s 15 year jumbo mortgage rates are currently averaging 3.78 percent, down from the prior week’s average 15 year jumbo rate of 3.81 percent. For the rest of this year, average 15 year jumbo rates will stay under 4.00 percent but right now you can find lenders quoting rates below 4.00 percent. The lowest 15 year jumbo refinancing rates in our database are more than 0.50 percent lower than the average rate. The lowest rate right now is at 3.125 percent with points. The lowest rate without points is at 3.50 percent, still more than 0.25 percent below the average. Average mortgage rates are heading lower again after making highs for 2013 as the Federal Government shut down for the first time in 17 years. Mortgage rates made highs for this on the fears the Federal Open Market Committee would start tapering their purchases of mortgage backed-securities and long term U.S. Treasuries. The FOMC surprised every when they announced they wouldn’t start tapering, the news sent 10 year bond yields lower which in turn sent mortgage rates lower. Where mortgage rates head in the coming weeks will depend on how long the government is shut down and if Congress can agree to increase the debt ceiling. The Federal Reserve Remains Open During the Government Shut DownIn case you’re wondering the Federal Reserve will be kept open during the government shut down don’t worry it will. All government agencies with independent sources of funding, which includes the Federal Reserve will remain open. Conforming Mortgage Rates TodayMortgage rates today continue to trend lower, average 30 year mortgage rates are averaging 4.32 percent, down from an average 30 year rate of 4.45 percent. Earlier this year 30 year mortgage rates were well under 4.00 percent, at the low point for this year average 30 year rates were as low as 3.37 percent. Average rates moved over 4.00 percent back in early and at one point 30 year rates moved 50 basis points higher in just one week. Current mortgage refinance rates on our rate tables are quoted as low as 3.75 percent with points, the lowest 30 year refinance rates without points are quoted at 4.00 percent. Today’s mortgage rates on 15 year conforming loans are averaging 3.37 percent, down from the prior day’s average 15 year mortgage rate of 3.42 percent. 15 year mortgage rates have also come down from considerably from 2013 highs. Back in July of this year 15 year rates hit a high of 3.85 percent and looked to push above 4.00 percent but have since declined. The lowest point for 15 year average conventional rates this year as 2.74 percent but you can still find lenders quoting rates as low. The lowest refinance rates today on our rate table for 15 year conforming loans are at 2.75 percent with two points. The lowest 15 year refinancing rates without points are at 3.00 percent. Jumbo Mortgage Rates Today30 year jumbo mortgage rates today are averaging 4.69 percent, down from yesterday’s average 30 year jumbo mortgage rate of 4.73 percent. Jumbo rates followed the same up and own trends in 2013 as conforming rates have. The rate spread between conforming and jumbo rates has been narrowing for several years now. Today’s spread between both types of loans is averaging 0.37 percent. Back during the financial crisis even if you could find a lender that would give you a jumbo loan the rate was over 200 basis points higher than a conforming rate. Currently, the lowest 30 year jumbo refinance rates available on our rate table are at 4.125 percent with points. The lowest 30 year jumbo rates without points right now are still under the average rate at 4.375 percent. Today’s Adjustable Mortgage RatesShort term adjustable mortgage rates today are lower on both conforming loans and jumbo loans. Current 5 year conforming adjustable mortgage rates are averaging 3.44 percent, down from yesterday’s average 5 year adjustable rate of 3.49 percent. 5 year jumbo adjustable rates are averaging 3.13 percent, down from the previous day’s average jumbo rate of 3.17 percent. The lowest 5 year adjustable refinance rates in our rate database today are at 2.25 percent with points. The lowest 5 year conforming refinancing rates without points in our database are at 2.50 percent. The best 5 year jumbo refinance rates right now in our database are at 2.59 percent with zero mortgage points. |
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