Lower Mortgage Rates This Week Continue to Help Housing Market
For the second consecutive week, average mortgage rates are lower which is providing help to the ongoing housing market recovery. Mortgage rates are lower because bond yields have also moved lower the past couple of weeks. Conventional 30 year mortgage rates today are averaging 3.54 percent, down from the prior week's average 30 year mortgage rate of 3.68 percent. 10 year bond yields have also fallen this past week and are at 1.70 percent today.
Average 30 year mortgage rates this week are just above an all-time record low set in November 2012. The all-time record low 30 year rate was at 3.27 percent, today's mortgage rates are only 27 basis points above the record low. In the coming weeks we could see 30 year rates break the record low if 10 year bond yields decline.
Yesterday, equity markets and commodity prices tumbled as investors worried about economies slowing down in China and the United States. Gold prices fell by the largest dollar amount ever yesterday and is down more than 20 percent from the record high, which puts gold in bear market territory.
If commodity prices and equity prices continue with sharp declines investors will flee to safer assets like U.S. Treasuries. This "classic flight to quality" always happens in periods of uncertainty and will happen again. When bond prices rise as investors pour into bonds, yields decline. As bond yields decline so do long term fixed mortgage rates.
If this scenario happens we could see 30 year conforming mortgage rates fall as low as 3.25 percent over the next couple of weeks. Right now you can find lenders quoting 30 year refinance rates below the current average of 3.54 percent and even below our prediction of 3.25 percent. The lowest 30 year refinancing rates on our rate table are at 3.00 percent with points. The lowest 30 year refi rates without points are at 3.25 percent.
Current mortgage rates on 15 year conventional home loans are averaging 2.78 percent this week, a decline from last week's average 15 year mortgage rate of 2.89 percent. If bond yields fall in the coming weeks, average 15 year conforming mortgage rates could fall as low as 2.50 percent. There are already lenders quoting 15 year conforming rates below the average and below 2.50 percent.
On our 15 year refinance rate tables for the state of Georgia you can find lenders quoting 15 year conforming refi rates as low as 2.25 percent with points. The lowest GA refinance rates without points on our rate tables right now are at 2.375 percent. Right now on our tables for the state of California you can also find lenders quoting refinance rates at 2.25 percent with points and at 2.50 percent without points.
30 year jumbo mortgage rates today are averaging 3.96 percent a decline from last week's average 30 year jumbo mortgage rate of 4.08 percent. If 10 year Treasury yields fall in the coming weeks we predict average 30 year jumbo mortgage refinance rates will fall as low as 3.75 percent. Right now the lowest jumbo refinance rates in our database for the state of New Jersey are at 3.375 percent with 2 mortgage points and at 3.625 percent with no points.
Average 15 year jumbo mortgage rates currently are averaging 3.34 percent, a decline from the previous week's average 15 year jumbo mortgage rate of 3.49 percent. The lowest jumbo mortgage interest rates on our rate tables right now in the state of Colorado are at 2.625 percent with 2 mortgage points and the lowest 15 year jumbo refi rates without points are at 3.15 percent.
RatesORama.com Average Mortgage Rates