Cyprus Tax on Deposit Accounts Will Send U.S. Mortgage Rates Lower

The euro zone took an unprecedented move by taxing deposit accounts in Cyprus to help pay for that country's bank bailout. The decision to raise $7.6 billion by taxing deposit accounts is an ill-advised move which may cause a run on deposits across the euro zone. The results are already being seen as people line up to take their money out of Cyprus banks.

The news sent stock indexes in Europe down. Stock prices opened lower in the United States and 10 year U.S. Treasury yields fell 9 basis points at the open and are now under 2.00 percent. Investors are doing the classic flight-to-quality by buying U.S. Treasuries during uncertain times. When Treasury prices move higher, Treasury yields move lower and lower yields means lower mortgage rates in the coming days.



There is fear in the European Union that the new tax might be applied to other countries that are in need of a bailout. Many people believe Italy might be next in line for a bailout. This fear will cause more money to be withdrawn by depositors in all euro zone countries. A major run on banks in the zone will cause equity markets to fall worldwide and send long-term U.S. bond yields even lower, in turn sending current mortgage rates down.

30 year mortgage rates today are averaging 3.69 percent, down from last week's average 30 year mortgage rate of 3.70 percent. In the coming days, the average 30 year conforming mortgage rate will probably fall below 3.60 percent. Right now you can already find lenders quoting 30 year mortgage rates well below 3.60 percent. Currently, the lowest 30 year mortgage refinance rates in our database are at 3.25 percent with points.

Mortgage rates today on 15 year conforming loans are averaging 2.87 percent, down from last week's average 15 year rate of 2.92 percent. This week, the average 15 year conventional loan rate will probably fall towards 2.75 percent, but you can already find lenders quoting 15 year refinance rates well below the averages.

The lowest 15 year conventional refi rates in our database are at 2.25 percent with points and without points, the lowest 15 year refi rate is at 2.50 percent. The lowest rates we mention in this article are the lowest overall, the lowest rate isn't available in all states. The good news is even for states that currently don't have lenders quoting rates at 2.25 percent, you can still find quotes as low as 2.50 percent, below the average rate.

Jumbo mortgage rates today on 30 year loans are averaging 4.11 percent, a decline from last week's average 30 year jumbo rate of 4.20 percent. If Treasury yields continue to decline this week, the average 30 year jumbo mortgage rate will fall towards 4.00 percent. The best jumbo rate in our database is currently at 3.50 percent with 2 mortgage points, the lowest rate without points is at 3.75 percent.,

Average 15 year jumbo mortgage interest rates are at 3.45 percent, down from last week's average 15 year rate of 3.52 percent. Right now we have lenders quoting 15 year jumbo refi rates as low as 2.75 percent with 2 mortgage points and as low as 3.00 percent with no points. When you search our database you don't have to provide any personal information to view a list of rates.

Loan Type

Purchase Refinance with Cash out Refinance

State

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FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

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LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

Mortgage Rates December 11, 2023