Mortgage Rates Hit New Low for 2014
Mortgage rates hit a new low for 2014 as average 30 year mortgage rates fall to 4.22 percent. This is the lowest point for average 30 year rates since November of 2013. At the start the year, 30 year conforming rates were averaging 4.60 percent, almost 40 basis points higher than the current average rate.
The average rate of 4.22 percent is just the average, there are many lenders quoting 30 year conforming rates below the average. The lowest 30 year refinance rates on our rate list for the state of California are below 4.00 percent. We currently have two lenders quoting 30 year refi rates at 3.875 percent with 2 mortgage points.
Mortgage rates were forecasted to move higher in 2014, primarily due to the Federal Reserve's winding down their latest round of quantitative easing. The current round of easing, QE3, had the Fed buying $45 billion a month in mortgage-backed securities (MBS) and $40 billion a month in long term U.S. Treasuries last year.
The Fed embarked on lowering their monthly purchases by $10 billion a month at the beginning of 2014. Starting this month, the Fed said they would only buy $25 billion a month in MBS and $20 billion a month in long term Treasuries. The Fed tapering was supposed to send long term bond rates and mortgage rates higher but the opposite has happened.
Mortgage rates today on 15 year conventional loans have also hit a new low for 2014. The current average 15 year mortgage rate is at 3.25 percent, down from last week's average 15 year rate of 3.33 percent. At the start of the year, average 15 year rates were over 3.50 percent averaging 3.63 percent.
The lowest 15 year rates currently available are also below the average rate. Checking on our rate list for the state of Arizona, the lowest 15 year refinance rates are at 2.75 percent with 1.10 mortgage points. The same lender is also quoting 15 year rates at 2.75 percent in most other states in the U.S..
Jumbo mortgage rates on both 30 year and 15 year jumbo loans are lower this week but higher for the year. Today's mortgage rates on 30 year jumbo loans are averaging 4.87 percent, down from the prior week's average 30 year jumbo rate of 4.92 percent. Back in early January, 30 year jumbo rates were averaging 4.61 percent.
Jumbo rates are slightly higher this year but you can still find lenders quoting 30 year jumbo rates below the average rate and below 4.00 percent. The best jumbo refinance rates on our rate list for the state of Maryland are at 3.875 percent with 1.625 mortgage points, almost 1.00 percent lower than the average rate.
Current mortgage rates on 15 year jumbo loans are averaging 4.05 percent, down from last week's average 15 year jumbo rate of 4.09 percent. 15 year jumbo rates are also slightly higher this year, up from the low of 3.92 percent hit in early January. The lowest 15 year jumbo refi rate on our rate list for the state of New Jersey is much lower at 3.25 percent.
RatesORama.com Average Mortgage Rates