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Mortgage Rates Remain Low For the Spring Home Buying Season

Mortgage Rates Remain Low For the Spring Home Buying Season

Current mortgage rates are still near record lows as we head into the spring home buying season. This is good news if you're planning on buying a home and good news for the housing market in general. 30 year mortgage rates today are averaging 3.80 percent, only 50 basis points from the all-time record low of 3.35 percent set in spring of 2013.

Mortgage rates are expected to increase during 2015, so the sooner you lock in a rate the better off you will be. Forecasts are for conventional 30 year mortgage rates to hit 5.00 percent by the end of 2015. Conventional loans are loans under $417,000.

Low mortgage rates aren't the only incentive to buy a home right now. Homes are still affordable despite double digit increases in home prices since the housing bust. A recent survey by Realtor.com showed 54 percent of their listings were deemed affordable.

The survey includes a map showing affordability across the United States. Naturally, listings of affordable homes varies across the country. The most affordable areas are clustered in the middle part of the country. The least affordable area was in California’s Central Coast wine territory. Less than 4 percent of existing home listings in the San Luis Obispo–Paso Robles area were affordable.

Mortgage Rates Remain Low Heading into the Spring Home Buying SeasonAverage 15 year conforming mortgage rates are currently at 3.03 percent this week, down 3 basis points from last week's average rate of 3.06 percent. 15 year rates are also about 50 basis points from record lows set in early 2013. By the end of 2015 average 15 year rates are expected to be near 4.00 percent.

Mortgage rates on all types of loans will be increasing this year and for several years to come. If you're thinking about buying a home act sooner than later. Home prices are forecast to increase between 5 and 7 percent this year. Mortgage rates are also increasing.

When you take into account the monthly cost of the loan, a lower mortgage rate allows you to buy more home. If you are buying a home, be sure to shop around for the best mortgage rate. The most important thing to consider when comparing mortgages is the mortgage rate. The lower the mortgage rate, the lower your monthly mortgage payments will be.

Other things to consider include mortgage points on the loan. You pay points on a mortgage to buy down the interest rate. Points are equal to a percentage of the loan and are usually quoted in quarter point increments. On our rate table, there are lenders quoting 30 year refinance rates at 3.875 percent with no points and at 3.625 percent with 0.653 points.

Listed below are average mortgage rates for March 24, 2015:

Average Mortgage Rates

  • 30 Year Conforming 3.80%

  • 15 Year Conforming 3.03%

  • 5 Year Conforming ARM 3.15%

  • 30 Year Jumbo 4.15%

  • 15 Year Jumbo 3.75%

  • 5 Year Jumbo ARM 3.27%

Author: Brian McKay
March 24th, 2015