Mortgage Rates Near Historic Lows but Will Move Higher in the Coming Years

Average mortgage rates increased this week but will fall in the coming days as a result of lower 10 year bond yields. The current average 30 year mortgage rate is at 4.25 percent, an increase from last week's average 30 year rate of 4.17 percent. Mortgage rates moved higher this week rates but are still very low, historically speaking.

Mortgage rates have remained near record lows for several years now and will move higher in the coming years. Despite the fact that rates are near record lows, loan demand is still sluggish. The Mortgage Bankers Association reported mortgage applications decreased 2.7 percent for the week ending August 8, 2014.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
in 23223, All points, 740    Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
3.660%
3.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 2.000 pts
45 day lock rate
Est payment: $1,348
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.073%
3.990%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 1.000 pts
45 day lock rate
Est payment: $1,431
Fees in APR: $3,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.500%
4.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 0.000 pts
45 day lock rate
Est payment: $1,521
Fees in APR: None
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.353%
3.250%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # MC-3098
08/18/2019
at 1.250 pts
30 day lock rate
Est payment: $1,306
Fees in APR: $3,903
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
3.660%
3.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 2.000 pts
45 day lock rate
Est payment: $1,348
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.073%
3.990%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 1.000 pts
45 day lock rate
Est payment: $1,431
Fees in APR: $3,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.281%
3.125%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # MC-3098
08/18/2019
at 2.000 pts
30 day lock rate
Est payment: $1,286
Fees in APR: $5,961
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.524%
3.500%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # MC-3098
08/18/2019
at 0.250 pts
30 day lock rate
Est payment: $1,348
Fees in APR: $903
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.750%
3.750%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # MC-3098
08/18/2019
at 0.000 pts
30 day lock rate
Est payment: $1,390
Fees in APR: ($153)
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.500%
4.500%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
08/18/2019
at 0.000 pts
45 day lock rate
Est payment: $1,521
Fees in APR: None
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from AimLoan.com
AimLoan.com
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112335.gif
300000
Purchase
3.430%
3.375%
USD
AimLoan.com Logo
NMLS # 2890
State Lic # MC-3098
08/18/2019
at 0.750 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $2,085
Internet direct lender since 1998. View rates & fees, apply/lock online 24/7
 

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.





In the coming years, rates will be moving higher as a result of stronger economy growth and the Federal Reserve policies. Joe Mollica, of Connecticut Financial Mortgage, said the following regarding rates, the housing market, and the Federal Reserve:
It is widely expected that the Fed will begin raising short term interest rates some time in 2015.  This is supported by signs of economic growth, be it at a slow pace, like the 2nd Quarter GDP reaching 4% and job increases exceeding 200,000 for the past 6 months.

The Fed must be careful, however, not to stunt growth in the housing market and affect housing prices by raising rates too quickly.  Housing starts in June were reported at 600,000 units, up from 300,000 units in 2010, but far off of the 1.4 million units in 2007.

It appears that there is a tremendous amount of pent up demand in the housing market, as people are waiting on the sidelines for clear signs of economic improvement.  Some economists also feel that a rise in short term rates by the Fed may keep inflation expectations stable which could keep mortgage interest rates reasonably stable as well.

Listed below are average mortgage rates today:

Conforming Mortgage Rates

  • 30 Year Fixed 4.25%

  • 15 Year Fixed 3.18%

  • 5 Year Adjustable 3.30%


Jumbo Mortgage Rates

  • 30 Year Fixed 4.56%

  • 15 Year Fixed 3.75%

  • 5 Year Adjustable 3.59%

Author: Brian McKay
August 14th, 2014