Refinance Rates off Record Lows as Bond Yields Increase: 15 Year Refi Rates at 2.99 Percent

Recent positive economic data and the Fed's inaction on starting QE3 has sent bond yields and refinance rates higher. Average 15 year refinance rates today are at 2.99 percent, up from an all-time record low of 2.96 percent set last week.

1o year bond yields have risen 30 basis points from a record low of 1.39 percent in late July, current 10 year yields are at 1.68 percent. As a result of higher Treasury yields average mortgage rates today have also gone higher over the past couple of weeks.

Current mortgage rates on 30 year conforming mortgage loans hit a record low of 3.49 percent in late July. Today's mortgage rates on 30 year conforming loans are averaging 3.64 percent, up from yesterday's average 30 year mortgage rate of 3.61 percent.

Average mortgage rates have moved up but I believe rates will pause here as investor's new worry is the rapid slowdown in the Chinese economy. China's exports for July fell short of expectations.

Exports only rose 1 percent, economist's estimates were for an 8 percent rise.  This negative news will undoubtedly send Treasury yields lower which will send mortgage rates and refinance rates lower.

Average jumbo mortgage rates today are also higher from record lows but will be heading lower in the coming days. Mortgage rates currently on 30 year jumbo loans are averaging 4.23 percent, up from an average 30 year jumbo mortgage rate of 4.21 percent.

Jumbo mortgage rates current on 15 year home loans are averaging 3.47 percent, up from an average 15 year jumbo mortgage rate of 3.42 percent yesterday.
Author: Lisa Graham
August 10th, 2012
Posted in: Mortgage Rates