Jumbo Mortgage Rates Hit Record Low as Spain’s Borrowing Costs Soar Today
mortgage rates today hit record lows as bond yields fell in the United States as Spain's borrowing costs soar to record levels on concern1s about the viability of Spain's Banks. Another factor that will keep mortgage rates low for the rest of 2012 is the Federal Reserve said that they extending the program of buying long term Treasuries until the end of 2012.
The Fed plans to continuing doing the "twist", buying long term bonds and selling short term bonds to the tune of $287 billion more. The Fed also said they are prepared to do more quantitative easing if the economy continues to weaken. Most economists believe QE3 is a done deal and will happen this year.
Current mortgage rates today on 30 year jumbo loans are averaging 4.06 percent in the MBA's mortgage survey, down from the previous week's average jumbo mortgage rate of 4.13 percent.
30 year jumbo rates are almost below 4.00 percent which is pretty amazing if you ask me since just a few years ago during the great recession it was hard to find any lender offering jumbo loans.
Lenders that were offering jumbo loans had rates that were 2 to 3 basis points higher than conforming loans. Right now jumbo mortgage rates are only 19 basis points higher than conforming mortgage rates, a record low spread between both mortgage products.
Also in the most recent mortgage survey 30 year conforming mortgage rates are averaging 3.87 percent which matches and all-time record low set two weeks ago.
FHA mortgage rates are averaging 3.72 percent this week, an increase from the prior week's average FHA mortgage rate of 3.71 percent. New lower refinancing costs with FHA loans caused a dramatic spike in the number of homeowners refinancing to an FHA loan. With current refinance rates at record lows it's no wonder people are refinancing at a record clip these days.
Today's mortgage rates on 15 year conventional home loans are averaging 3.25 percent this week, a slight increase from the prior week's average 15 year mortgage rate of 3.23 percent.
RatesORama.com Average Mortgage Rates