Mortgage Rates Decline: 30 Year Conforming Rates Fall Below 4.00%

After many weeks of higher average mortgage rates, this week average rates have finally declined. 30 year conforming mortgage rates which spent the past two weeks above 4.00 percent have declined to 3.94 percent, down from last week's average rate of 4.03 percent. Average 30 year rates hit a recent high of 4.16 percent on June 5 and have fallen 22 basis points.

Average rates are lower because 10 year bond yields have also fallen from recent highs. The recent high for 10 year bond yields was at 2.25 percent and on Friday the 10 year yield closed at 2.14 percent. Mortgage rates will also move lower over the weekend and early next week. 30 year conforming rates will probably fall to 3.85 percent.



The recent run-up in rates has caused loan demand for refinancing to drop off a cliff but the recent drop in refinance rates should spur demand again. Homeowners who thought they missed the boat on a refinance since 30 year rates moved above 4.00 percent will jump at the chance to refinance to a rate below 4.00 percent.

Mortgage rates today on 15 year conventional loans are moving back down toward 3.00 percent. The average 15 year mortgage rate is at 3.07 percent, down from last week's average rate of 3.18 percent. By Monday morning, average 15 year rates will probably be back below 3.00 percent since 10 year bond yields declined 5 basis points on Friday.

Current jumbo mortgage rates on 30 year loans bucked the downtrend and moved higher this week over last. The current average 30 year jumbo mortgage rate is at 4.35 percent, an increase from the previous week's average 30 year jumbo mortgage rate of 4.29 percent. 30 year jumbo rates will fall to around the 4.25 percent range early next week.

Average 15 year jumbo mortgage interest rates were also higher this week over last. 15 year jumbo mortgage rates today are averaging 3.68 percent, an increase from last week's average 15 year rate of 3.64 percent. This coming week average 15 year rates will fall back below 3.65 percent.

Adjustable mortgage rates which are less affected by long term bond yields haven't moved much higher the past several weeks. This past week, average 5 year conforming adjustable rates increased slightly to 2.82 percent, up from the prior week's average rate of 2.79 percent. Average 5 year jumbo mortgage rates declined 1 basis point this week to 2.98 percent, down from last week's average rate of 2.99 percent.

 

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 10, 2023