Mortgage Rates Trend Lower on Lower U.S. Treasury Rates
This week bond rates have been in a tight range of 2.60 percent to 2.65 percent, in essence shrugging off the shutdown of the Federal Government. If the shutdown lasts a long time and the economy is hurt by it, bond rates will decline from current levels which would send mortgage rates lower as well.
Today's Mortgage Rates on 15 Year Conforming Loans
Average 15 year conforming mortgage rates are at 3.33 percent, down from last week's average 15 year rate of 3.44 percent. 15 year mortgage rates were below 3.00 percent earlier this year but moved considerably higher over the summer. The high point for 15 year rates was back in early August when average 15 year rates hit 3.85 percent.
In the coming weeks and months, average conventional mortgage rates will stay around current levels provided the government shutdown is resolved and there are no issues increasing the debt ceiling limit. If these two issues can't be resolved in time, look for conforming rates to move sharply lower because investors will send bond yields much lower on concerns about future economic growth.
Jumbo Mortgage Rates Decline
Jumbo mortgage rates have also moved lower the past several weeks for the same reason that conforming rates declined. Average 30 year jumbo mortgage rates today are at 4.61 percent, down from the prior week's average 30 year jumbo mortgage rate of 4.73 percent. Average 30 year jumbo rates were just above 5.00 percent in early August and have since moved much lower.
15 year jumbo mortgage rates are averaging 3.85 percent, down from the prior week's average 15 year jumbo rate of 4.02 percent. Both 30 year and 15 year jumbo rates will move slightly lower in the coming weeks but any big move lower will also be dependent upon the budget issues in Washington.
Adjustable Mortgage Rates Today
Average 5 year conforming adjustable mortgage rates are still above average 5 year jumbo mortgage rates this week. Current 5 year conforming adjustable mortgage rates are averaging 3.43 percent, a decline from an average 5 year adjustable rate of 3.56 percent last week. 5 year jumbo adjustable mortgage rates are averaging 3.15 percent, down from the previous week's average 5 year jumbo rate of 3.34 percent.
RatesORama.com Average Mortgage Rates