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Current Mortgage Rates Today – 30 Year Rates Averaging 4.12 Percent

Current Mortgage Rates Today – 30 Year Rates Averaging 4.12 Percent

30 year mortgage rates today are averaging 4.12 percent, down 15 basis points from last week's average rate of 4.27 percent. Rates are expected to increase this week because 10 year U.S. Treasury yields moved sharply higher. 20 year Treasury yields increased 25 basis points since last Wednesday on hopes of a Greek bailout deal. A deal was reached this morning and as a result, 10 year bond yields are up another 5 basis points to 2.45 percent.

Lenders set mortgage rates based on 10 year bond yields so when yields move higher, mortgage rates also move higher. By the end of this week, average 30 year mortgage rates will be back above 4.25 percent. Historically speaking, 30 year rates around 4.00 percent are still incredibly low.

Now that the Greek issue has been resolved, markets will be focused on when the Federal Open Market Committee increases the fed funds rate. Mortgage rates are not directly tied to the fed funds rate but Treasury yields are. When the FOMC increases the fed funds rate, Treasury yields will increase and then mortgage rates will increase.

The general consensus was for the FOMC to increase the fed funds rate during their September meeting. Recent economic data released might force the FOMC to wait until their October or December meeting to increase the rate. If this scenario plays out, we may see 30 year mortgage rates around 4.00 percent for the rest of 2015.

Average Mortgage Rates July 13 2015While the average for 30 year rates is above 4.00 percent, there are many lenders still quoting 30 year rates below 4.00 percent. Right now on our mortgage rate list for California, we have Pentagon Federal Credit Union quoting 30 year refinance rates at 3.75 percent with 1 point. We also have two other lenders quoting 30 year refi rates below 4.00 percent.

Current mortgage rates on 15 year conforming loans are averaging 3.13 percent, down from the prior week's average rate of 3.22 percent. If the FOMC puts off a September rate increase, average 15 year rates will probably remain around 3.00 percent for the rest of 2015. The best 15 year refinance rates available on our rate list for Florida are just under 3.00 percent.

30 year jumbo mortgage rates are averaging 4.39 percent, down slightly from last week's average 30 year jumbo rate of 4.42 percent. Jumbo rates are also affected by bond yields, so we expect 30 year jumbo rates to remain near current levels for the rest of 2015. The best 30 year jumbo refinance rates available on our rate list for Connecticut are at 3.75 percent with no points.

Today's mortgage rates on 15 year jumbo loans are averaging 3.85 percent, down 1 basis point from the previous week's average 15 year jumbo rate. 15 year jumbo rates will also stay under 4.00 percent for the rest of this year if the FOMC waits on a rate increase. The lowest 15 year jumbo rates on our rate list are currently at 2.99 percent.

Author: Brian McKay
July 13th, 2015