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30 Year Mortgage Rates Hit New Low for 2015

30 Year Mortgage Rates Hit New Low for 2015

Mortgage rates move lower again this week, continuing to defy analysts predictions of higher rates. 30 year mortgage rates today are averaging 3.82 percent, a decline from last week's average 30 year mortgage rate of 3.84 percent. Conforming 15 year rates dropped from 2.99 percent to 2.96 percent.

We will see average rates increase this week because 10 year bond yields moved sharply higher. A week 10 year yields hit a low of 1.78 percent and today yields are at 1.99 percent. On February 2nd, 10 year yields hit a 2015 low of 1.67 percent.

Although 10 year yields increased 32 basis points over the past week, average mortgage rates won't increase by the same amount. The reason being, earlier in 2015 lenders didn't decrease mortgage rates as much as 10 year bond yields dropped.

From late December 2014 until early February 2015 10 year yields dropped from 2.26 percent to 1.67 percent, a 59 basis point decrease. During the same time, average 30 year mortgage rates dropped from 4.08 percent to 3.82 percent, only a 26 basis point decrease.

30 year rates will move higher this week, probably in the range of 3.95 percent to 4.00 percent. Remember, these rates are average rates, there are lenders quoting rates below and above the average. The lowest 30 year refinance rates on our rate list are at 3.75 percent with points.

15 year conforming rates will also increase this week and move back above 3.00 percent. This will be the first time in several weeks that average 15 year rates are above 3.00 percent. Rates will move into a range of 3.05 percent to 3.10 percent.

Current mortgage rates on 30 year jumbo loans are averaging 4.40 percent, an increase from the previous week's average 30 year jumbo rate of 4.38 percent. The lowest 30 year jumbo refinance rates on the rate table are much lower at 3.625 percent with no mortgage points.

Today's 15 year jumbo mortgage rates are averaging 4.17 percent, down from the prior week's average 15 year rate of 4.19 percent. The best 15 year jumbo refi rates quoted on our rate table are almost 150 basis points lower at 2.75 percent with 1.75 points.

Rates will be moving higher in 2015 but rates are still low historically speaking. Low rates continue to support the housing market recovery. Fannie Mae has forecast a robust housing market in 2015. New home sales, existing home sales, and home prices are all forecast to increase in 2015.

By the end of 2015 Fannie Mae also forecasts 30 year mortgage rates will only be averaging 4.20 percent, not much higher from current levels. If you're thinking about buying a home 2015 will be a good year to do so.

Author: Brian McKay
February 11th, 2015