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Mortgage Rates Remain Under 4.00 Percent - Lowest Rate at 3.50 Percent with 2 Points
 

Mortgage Rates Remain Under 4.00 Percent – Lowest Rate at 3.50 Percent with 2 Points

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Average 30 year mortgage rates remain under 4.00 percent this week, continuing to defy the experts who expected higher rates by now. Conforming 30 year mortgage rates fell to 3.90 percent, down from the prior week's average rate of 3.97 percent.

30 year mortgage rates under 4.00 percent weren't supposed to happen by August 2015. Earlier this year, analysts were forecasting 30 year rates to be near 5.00 percent. Chances are 30 year rates won't hit 5.00 percent by the end of this year. A more likely scenario would be for 30 year rates to be under 4.50 percent.

Low rates are fueling demand for home loans. The Mortgage Bankers Association reported mortgage application volume for both loan refinancing and home purchases increased 3.6 percent week over week on a seasonally adjusted basis for the week ending August 14, 2015.

Refinance rates under 4.00 percent have created a mini-boom for refinancing loans. Refinance applications surged 7 percent from the prior week, reaching the highest level since May, according to the Mortgage Bankers Association. The best 30 year refinance rates on our rate list are at 3.50 percent with 2 mortgage points. The best refi rate without points is at 3.75 percent.

Rates are eventually moving higher, so if you're thinking about refinancing your mortgage, do so sooner than later. The conventional wisdom is that it makes financial sense to refinance if current rates are at least 1.00 percent below your current mortgage rate. Of course, refinancing to a short term loan also makes sense even if the rate is less than or even higher than your current mortgage rate.

Mortgage rates today on 15 year conforming loans are currently averaging 3.03 percent, down from last week's average 15 year rate of 3.05 percent. Average 15 year rates will probably fall below 3.00 percent this week because 10 year bond yields continue to decline.

Today's mortgage rates on 30 year jumbo loans are averaging 4.29 percent, up 1 basis point from last week's average 30 year jumbo rate. The best 30 year jumbo refinance rates on our rate list are also at 3.50 percent but with only 0.88 mortgage points. The best 30 year jumbo rate without points is at 3.75 percent.

15 year jumbo mortgage rates are averaging 3.74 percent this week, a decline from the previous week's average 15 year rate of 3.86 percent. The best 15 year jumbo refinance rates on our rate list are well below the average. The lowest 15 year rate is at 2.875 percent with 1.10 points and the lowest rate without points is at 3.25 percent.
Author: Brian McKay
August 20th, 2015