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30 Year Conventional Mortgage Rates Fall to 3.43 Percent on Average

30 Year Conventional Mortgage Rates Fall to 3.43 Percent on Average

Conventional and jumbo mortgage rates continue to make new lows today due to 10 year bond yields falling last week. Average rates are just above record lows and are likely to make new record lows some time this week. Mortgage rates today on 30 year conventional loans are averaging 3.43 percent, down from the prior week's average 30 year rate of 3.51 percent.

30 Year Conventional Mortgage Rates on Average Fall to 3.43 PercentCurrent mortgage rates on 30 year jumbo loans are averaging 3.92 percent, a decline from the previous week's average 30 year jumbo rate of 3.98 percent. The rate spread between 30 year conforming loans and 30 year jumbo loans is at the narrowest point in years as lenders are more comfortable making jumbo loans since investors are willing to buy jumbo loans again.

Back during the financial crisis, lending standards were tightened for all types of loans but jumbo loans were virtually unattainable due to investors being unwilling to buy any mortgage-backed securities (MBS) due to the crumbling housing market. After mortgage loans were made, often the loans were then packaged together and sold to investors in the form of MBS.

If you could find a lender (usually a bank) that was actually offering jumbo mortgages, the rate you paid was considerably higher than conforming rates. The rate spread between both types of loans was near 2 percent. Since the lending market is getting back to normal and investors feel safer buying MBS, jumbo rates have come down.

Currently, the lowest 30 year jumbo mortgage rates available in our rate database for the state of California are at 3.375 percent with 2 mortgage points. The lowest 30 year jumbo rates without points for the state of CA are available at 3.50 percent. You can also find 30 year jumbo refinance rates in most other states in our database as low as the rates listed for CA.

If you're looking for 30 year conforming refinance rates we also have lenders quoting rates well below the average of 3.43 percent. Right now in our rate database for the state of Texas we have lenders quoting 30 year refinancing rates as low as 3.00 percent with points and as low as 3.125 percent without points.

Today's mortgage rates on 15 year conforming loans are averaging 2.67 percent, a decline from last week's average 15 year rate of 2.73 percent. In Freddie Mac's mortgage rate survey last week 15 year rates made a new record low, you can read more here: "Record Lows for 15 Year Conforming Mortgage Rates."

We always recommend getting a 15 year mortgage over a 30 year mortgage because the amount of mortgage interest you pay on a 30 year loan is much more than a 15 year loan. You can use our mortgage calculator to see the difference between both types of loans. The advantages are great but the drawback is that your monthly mortgage payments are higher for a shorter term loan.

The lowest conforming 15 year mortgage refinance rates available in our database for the state of Florida are well below the average rate. The best refinance rates in Florida with points are currently at 2.25 percent and the best 15 year refi rates without points in our FL database of rates are at 2.375 percent. These 15 year rates are also available in most other states in our database.

We also have lenders quoting 15 year jumbo refinance rates much lower than the average rate of 3.36 percent. The best 15 year jumbo refi rates right now in our database for the state of Colorado are currently at 2.625 percent with points. The lowest 15 year jumbo refi rates without points right now are at 2.875 percent.

Author: Brian McKay
April 30th, 2013