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Current Mortgage Rates Lower as Bond Yields Retreat
 

Current Mortgage Rates Lower as Bond Yields Retreat

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Current mortgage rates declined as bond yields retreated from recent highs. Conforming  30 year mortgage rates which recently moved back above 4.00% has high as 4.25% are once again back below 4.00%.

Mortgage rates today on 30 year conforming home loans are averaging 3.99%, down from last week's average 30 year rate of 4.12%. Mortgage rates are lower this week over last since 10 year bond yields retreated from 2.28% back down to 2.18% today.

Mortgage interest rates won't stay at these low levels since the economy is picking up steam and inflation is increasing. The Bureau of Economic Analysis released the National Price Index for personal consumption expenditures, which increased to 2.5% in 2011.

The rate of increase in 2011 over 2010 has faster than the previous year's increase of 1.8%. The Federal Reserve has made its intentions of keeping interest rates low until 2014 but higher inflation will derail that policy.

Back to average mortgage rates today which also decreased on conforming 15 year home loans. 15 year conforming mortgage rates today are averaging 3.21%, down from last week's average 15 year mortgage rate of 3.29%.

Fixed conventional mortgage rates are not the only rates decreasing week over week as jumbo mortgage rates and adjustable rates on both types of loans also decreased.

Today's mortgage rates on 30 year jumbo mortgages are averaging 4.43%, a decline from the previous week's average jumbo mortgage rate of 4.56%. 15 year jumbo mortgage interest rates today are averaging 3.59%, down from last week's average 15 year jumbo loan rate of 3.68%.

I don't know how many times we mention this but I feel we can't stress this enough. Current mortgage rates will be going higher before 2014. You can expect interest rates in general to start increasing in 2012. Therefore if you are thinking about buying a home or refinancing a loan you better get on it now. Both mortgage rates and refinance rates will be moving higher in the next several months because the economy is improving.

Average adjustable mortgage rates on 5/1 conforming loans are at 2.84%, down from the previous week's average adjustable mortgage rate of 2.97%. Jumbo adjustable mortgage rates on 5/1 loans are averaging 2.99%, down from last week's average jumbo adjustable mortgage interest rate of 3.08%.

Author: Robert Till
March 28th, 2012