Mortgage Rates Fall This Week as Sequestration Hits Today at Noon
Average mortgage rates fell this week as Boehner halts talks on cuts and Home Republicans rejoice on the news. The equities markets are expected to open lower today on the news but overall investors don't appear to be nervous about the pending cuts in government spending. Mortgage rates today on 30 year conforming loans are averaging 3.56 percent, a decline from last week's average 30 year mortgage rate of 3.69 percent.
Current mortgage rates are lower this week as 10 year Treasury yields declined from just above 2.00 percent to 1.89 percent. The future direction of mortgage rates depends on how sequestration impacts the economy and the upcoming negotiations on funding the federal government for the next 12 months.
A prolonged fight between Democrats and Republicans on the federal budget will cause a shutdown of the government which will take a bite out of GDP growth for 2013. I believe there will be big declines in stock prices and bond yields if the federal government is shut down, even if the shut down is only temporary.
Today's mortgage rates on 15 year conventional home loans are averaging 2.89 percent, down from last week's average 15 year mortgage interest rate of 2.98 percent. 15 year rates have been below 3.00 percent for all of 2012 and looks to remain under 3.00 percent for most of 2013. There are many loan lenders quoting 15 year refinance rates as low as 2.25 percent with points on our rate tables right now. These rates are quoted for those who have credit scores above 660.
Average 30 year jumbo mortgage rates today are at 4.04 percent, a decline from an average 30 year jumbo mortgage rate of 4.21 percent set last week. 30 year jumbo refinance rates can be found below the average and below 4.00 percent. The lowest 30 year jumbo refinance rates today on our rate table are at 3.75 percent with points.
Current 15 year jumbo mortgage rates are averaging 3.37 percent, a decline from last week's average 15 year jumbo rate of 3.52 percent. The lowest 15 year jumbo refinance rates in our rate database for the state of California are at 3.00 percent with points. On the East Coast in New Jersey the lowest 15 year jumbo refinancing rates are also at 3.00 percent with points.
Adjustable mortgage rates are also lower this week, average 5 year conventional adjustable mortgage rates are at 2.72 percent, down from last week's average 5 year adjustable rate of 2.81 percent. Average 5 year jumbo mortgage rates are at 2.90 percent, a decline from last week's average 5 year rate of 3.01 percent.
RatesORama.com Average Mortgage Rates