Mortgage Rates Decline as Home Affordability Slips

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 Now


Overall 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.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 23223, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed Mortgage Loan from Ally Bank
Ally Bank
https://www.brimg.net/system/img/inst/10271_logo.gif
300000
Refinance
4.230
4.125
USD
Ally Bank Logo
NMLS # 181005
at 0.100 pts
45 day lock rate
Est payment: $1,453.95
Fees in APR: $3,450
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
4.223
3.990
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 1.000 pts
30 day lock rate
Est payment: $1,430.52
Fees in APR: $5,283
 
 
30 yr fixed Mortgage Loan from Sebonic Financial
Sebonic Financial
https://www.brimg.net/system/img/inst/8420_logo.gif
300000
Refinance
4.094
3.990
USD
Sebonic Financial Logo
NMLS # 66247
State Lic # MC-1825
at 0.100 pts
30 day lock rate
Est payment: $1,430.52
Fees in APR: $3,431
Thank you for your inquiry, we will be in touch shortly. 
 
30 yr fixed Mortgage Loan from First Midwest Bank
First Midwest Bank
https://www.brimg.net/system/img/inst/10612_logo.gif
300000
Refinance
4.052
3.990
USD
First Midwest Bank Logo
NMLS # 423112
at 0.750 pts
60 day lock rate
Est payment: $1,430.52
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from First Midwest Bank
First Midwest Bank
https://www.brimg.net/system/img/inst/10612_logo.gif
300000
Refinance
4.125
4.125
USD
First Midwest Bank Logo
NMLS # 423112
at 0.000 pts
60 day lock rate
Est payment: $1,453.95
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
4.427
4.375
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 0.000 pts
30 day lock rate
Est payment: $1,497.86
Fees in APR: $1,825
 
 
30 yr fixed Mortgage Loan from Ally Bank
Ally Bank
https://www.brimg.net/system/img/inst/10271_logo.gif
300000
Refinance
4.380
4.375
USD
Ally Bank Logo
NMLS # 181005
at 0.000 pts
45 day lock rate
Est payment: $1,497.86
Fees in APR: $194
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from JG Wentworth Home Lending
JG Wentworth Home Lending
https://www.brimg.net/system/img/inst/10054_logo.gif
300000
Refinance
4.258
4.250
USD
JG Wentworth Home Lending Logo
NMLS # 2925
State Lic # MC-1875
at 0.000 pts
45 day lock rate
Est payment: $1,475.82
Fees in APR: $299
 
 
30 yr fixed Mortgage Loan from Sebonic Financial
Sebonic Financial
https://www.brimg.net/system/img/inst/8420_logo.gif
300000
Refinance
4.240
4.240
USD
Sebonic Financial Logo
NMLS # 66247
State Lic # MC-1825
at 0.000 pts
30 day lock rate
Est payment: $1,474.06
Fees in APR: $2
Thank you for your inquiry, we will be in touch shortly. 
 
30 yr fixed Mortgage Loan from First Midwest Bank
First Midwest Bank
https://www.brimg.net/system/img/inst/10612_logo.gif
300000
Refinance
3.863
3.750
USD
First Midwest Bank Logo
NMLS # 423112
at 1.375 pts
60 day lock rate
Est payment: $1,389.35
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
4.256
3.875
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 2.000 pts
30 day lock rate
Est payment: $1,410.71
Fees in APR: $7,446
 
 
30 yr fixed Mortgage Loan from Sebonic Financial
Sebonic Financial
https://www.brimg.net/system/img/inst/8420_logo.gif
300000
Refinance
3.928
3.740
USD
Sebonic Financial Logo
NMLS # 66247
State Lic # MC-1825
at 1.100 pts
30 day lock rate
Est payment: $1,387.65
Fees in APR: $3,515
Thank you for your inquiry, we will be in touch shortly. 
 
30 yr fixed mtg refi Mortgage Loan from Fulton Bank, NA
Fulton Bank, NA
300000
Refinance
4.529
4.500
USD
Fulton Bank, NA
4.529%
4/16/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $1,007
 
 
30 yr fixed mtg refi Mortgage Loan from Virginia Credit Union
Virginia Credit Union
300000
Refinance
4.328
4.250
USD
Virginia Credit Union
4.328%
4/16/2019
4.250%
at 0.375 pts
45 day lock rate
Est payment: $1,475.82
Fees in APR: $1,650
 
 
30 yr fixed mtg refi Mortgage Loan from State Department Federal Credit Union
State Department Federal Credit Union
300000
Refinance
4.432
4.375
USD
State Department Federal Credit Union
4.432%
4/15/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $2,000
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.415
4.375
USD
Citizens Bank, NA
4.415%
4/12/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $1,408
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.155
4.125
USD
LincolnWay Community Bank
4.155%
4/16/2019
4.125%
at 0.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: $1,085
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of Oak Ridge
Bank of Oak Ridge
300000
Refinance
4.295
4.250
USD
Bank of Oak Ridge
4.295%
4/18/2019
4.250%
at 0.250 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $853
 
 
30 yr fixed mtg refi Mortgage Loan from TD Bank, NA
TD Bank, NA
300000
Refinance
4.278
4.250
USD
TD Bank, NA
4.278%
4/19/2019
4.250%
at 0.000 pts
45 day lock rate
Est payment: $1,475.82
Fees in APR: $982
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.557
4.500
USD
Santander Bank, N.A.
4.557%
4/19/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from Northwest Federal Credit Union
Northwest Federal Credit Union
300000
Refinance
4.316
4.250
USD
Northwest Federal Credit Union
4.316%
4/17/2019
4.250%
at 0.750 pts
45 day lock rate
Est payment: $1,475.82
Fees in APR: $79
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.343
4.250
USD
Bank of America
4.343%
4/17/2019
4.250%
at 0.671 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $1,289
 
 
30 yr fixed mtg refi Mortgage Loan from Apple Federal Credit Union
Apple Federal Credit Union
300000
Refinance
4.345
4.250
USD
Apple Federal Credit Union
4.345%
4/17/2019
4.250%
at 1.000 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $352
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.





Home Affordability Falls to 5 Year Low


Lawrence 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 Norm


Over 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


Mortgage Rates Decline as Home Affordability SlipsMortgage rates today on 15 year conventional loans are averaging 3.29 percent, an increase from the previous week's average 15 year mortgage rate of 3.21 percent. The slight increase in average 15 year mortgage rates this week won't last because long term bond yields are still declining.

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 Rates


Current 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 Loans


Today'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.
 
 
Author: Brian McKay
November 6th, 2013
Posted in: Mortgage Rates