30 Year Mortgage Rates Today Fall to 4.15 Percent
The downtrend continues for 30 year conforming mortgage rates this week. 30 year mortgage rates today are averaging 4.15 percent, down from last week's average of 4.17 percent. Thusfar, mortgage rates have fallen in 2014, which is the opposite of analysts' predictions. Analysts believed mortgage rates would move higher once the Federal Reserve started winding down their monthly asset purchases.
The Fed had been buying mortgage backed securities and long term Treasuries to force interest rates down. The Fed's policy was very effective at lowering mortgage rates and long term bond yields. In the spring of 2013, 10 year bond yields fell to 1.60 percent and 30 year conforming mortgage rates fell to 3.27 percent, both record lows.
Some had made the forecast that average 30 year conforming rate should have fallen even lower. Two economists, Andreas Fuster and David Lucca, wrote an interesting piece asking why 30 year rates didn't fall as low as 2.60 percent. Why Isn’t the Thirty-Year Fixed-Rate Mortgage at 2.6 Percent?
The downtrend for mortgage rates won't last much longer. Economic headwinds are getting stronger, which will lower the unemployment rate and increase the inflation rate. 30 year conforming rates are forecast to head towards 5.00 percent by the end of 2014 and to be above 5.00 percent in 2015.
Current mortgage rates on 15 year conforming loans are also lower this week, averaging 3.17 percent, down from the prior week's average 15 year mortgage rate of 3.21 percent. Average 15 year conventional rates are forecast to head towards 4.00 percent by the end of this year and above 4.00 percent next year.
30 year jumbo mortgage rates are averaging 4.50 percent, down slightly from last week's average 30 year jumbo mortgage rate of 4.51 percent. 30 year jumbo refinance rates will be above 5.00 percent by the end of 2014 and above 5.00 percent next year. The lowest 30 year jumbo rates currently available from lenders are still around 4.00 percent.
Today's mortgage rates on 15 year jumbo mortgage loans are back above 4.00 percent. The current average 15 year jumbo mortgage rate is at 4.03 percent, up from last week's average rate of 3.98 percent.
RatesORama.com Average Mortgage Rates