Mortage Rates Today Render New Lows Thanks to Fed Buying $40 Billion a Month in MBS

The declines in average mortgage rates have been accelerating since the Federal Reserve announced they would buy $40 billion a month in mortgage backed securities. The Fed's announcement, which came right after their September meeting almost three week ago, caused an immediate drop in mortgage rates the following day and the trend has been lower ever since. Mortgage rates today on 30 year conventional mortgage loans are averaging 3.40 percent, down from last week's average 30 year mortgage rate of 3.56 percent.

A week over week decline of 16 basis points is one of the largest declines in 2012. Prior to the Fed's change in policy average 30 year mortgage rates were in a tight range for several months. Current mortgage rates will head even lower the rest of 2012 and into 2013. Before this year is over average 30 year conforming mortgage rates might hit a new record low of around 3.20 percent and in 2013 we might see 30 year mortgage interest rates move below 3.00 percent.



Right now you can already find lenders offering 30 year refinance rates near 3.00 percent depending on the state you live in. On our 30 year refinance rates tables in the state of Pennsylvania there are two lenders listed offering 30 year mortgage refinance rates at 3.125 percent with points. Roundpoint Mortgage Company and Amerisave are the lenders offering 30 year refinancing rates at 3.125 percent.

Today's mortgage rates on 15 year conforming home loans also hit a new record low of 2.83 percent, down from last week's average 15 year mortgage interest rate of 2.94 percent. The future direction of 15 year mortgage rates will also be lower the next 6 months. Average 15 year refinance mortgage rates could go as low as 2.75 percent in 2012 and as low as 2.60 percent in 2013.

Right now you can already find lenders offering 15 year conforming refinance rates below the average of 2.83 percent and below our future prediction of an average rate of 2.75 percent. Currently on our 15 year refi rates list in Texas there are two lenders offering 15 year rates below the average. Roundpoint Mortgage and LenderFi are both offering 15 year rates at 2.375 percent with points.

Fixed jumbo mortgage rates today are also at new all-time lows on both 30 year loans and 15 year loans. Current mortgage rates on 30 year jumbo loans are averaging 4.06 percent, down from last week's average 30 year jumbo mortgage rate of 4.15 percent. We predict 30 year jumbo refinance rates will drop below 4.00 percent this month and drop as low as 3.75 percent in the coming year.

There are lenders on our rate lists already offering 30 year jumbo mortgage interest rates below the average of 4.06 percent depending on the state you reside in. Right now on our 30 year jumbo refinance rates list for the state of California CitiMortgage is listed as offering 30 year jumbo refi rates at 3.875 percent with zero points.

Current mortgage interest rates today on 15 year jumbo mortgage loans are averaging 3.32 percent, down from an average 15 year jumbo mortgage rate of 3.46 percent. Average 15 year jumbo mortgage rates will probably go down as low as 3.00 percent over the next six months. Right now on our rate tables you can find lenders offering 15 year jumbo refinance rates at 2.75 percent with points in New Jersey.

Short term aadjustable mortgage rates haven't declined as much as longer term fixed mortgage rates because shorter term mortgage rates are tied to shorter term interest rates. Average 5 year adjustable mortgage rates are averaging 2.96 percent this week, down slightly from last week's average 5 year adjustable mortgage interest rate of 2.98 percent. Average 5 year jumbo mortgage rates are at 2.83 percent, unchanged from last week's average 5 year jumbo rate.

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

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

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

Mortgage Rates December 3, 2023