Low Mortgage Rates Will Make Homes More Affordable in 2016
In 2015, mortgage rates drifted in a narrow range just above record lows set in 2013. In fact, mortgage rates this year came very close to the record lows set in 2013. Mortgage rates will increase in 2016 but rates will still be very low, historically speaking. As a result of low rates, buying a home in 2016 will be more affordable than it would have been if rates were higher.
The current average conforming 30 year mortgage rate is at 3.84 percent and the lowest rate available on our rate list is at 3.50 percent. Both the average rate and lowest rate offered right now are well below where rates were forecast to be at the end of this year.
At the beginning of 2015, average 30 year conforming rates were supposed to be around 5.00 percent. 30 year rates came to near 5.00 percent. At the high point, this year average 30 year rates were around 4.50 percent. If the Fed increases the fed funds rate 3 or 4 times in 2016, we may see average 30 year rates hit 5.00 percent but not until the end of 2016.
Average 15 year conforming rates today are just above 3.00 percent at 3.02 percent. The best 15 year conforming refinance rates on our rate list are well below 3.00 percent at 2.625 percent with 2 mortgage points. The lowest 15 year rate without points is also below the average at 3.00 percent.
30 year jumbo mortgage rates are currently averaging 4.34 percent. The lowest 30 year jumbo refinance rates on our rate list are below 4.00 percent at 3.75 percent with zero points.
Current mortgage rates on 15 year jumbo loans are averaging 4.18 percent and the lowest 15 year jumbo rates on the rate list are well below the average. The lowest 15 year jumbo refi rate on our rate list is at 3.125 percent with 1.125 points, a full 100 basis points below the average rate.
You can check on mortgage rates or refinance rates in our state by searching our rate lists at RatesORama.com/Mortgage-Rates.
RatesORama.com Average Mortgage Rates