The Future Direction of Mortgage Rates Will Be Lower Until Mid 2013
A slow economy, high unemployment and the Federal Reserve starting another round of quantative easing will send mortgage rates to new lows in the fourth quarter of 2012 and into 2013. Average mortgage rates have already made a slew of record lows in 2012 but will move lower because the Fed will be buying $40 billion a month in mortgage backed securities (MBS) to drive mortgage rates lower. 30 year mortgage rates today are averaging 3.48 percent, down from an average 30 year mortgage rate of 3.51 percent on Friday.
I believe average 30 year mortgage rates could quite possibly drop to 3.00 percent on average or even move under 3.00 percent. There are lenders offering 30 year refinance mortgage rates below the averages, in fact right now on our refinance rates list for 30 year mortgages in the state of Texas you can find lenders offering 30 year refinancing rates as low as 3.125 percent with points. Without points there lenders offering 30 year rates as low as 3.25 percent.
In a recent mortgage survey by Freddie Mac average 30 year conforming mortgage rates tied a record low of 3.49 percent and average 15 year mortgage rates hit an all-time record low fo 2.77 percent. Average mortgage interest rates hit new lows in Freddie Mac's survey because the Fed announced QE3 a week before. This news sent bond yields and current mortgage rates to record lows. You can listen to the entire Fed press conference about the economy and the decissions the Fed made in the last meeting.
Mortgage rates today on 15 year conventional loans are averaging 2.73 percent, down from an average 15 year mortgage refinance rate of 2.75 percent set on Friday. Later in 2012 and in the first quarter of 2013 I believe average 15 year mortgage rates will hit record lows and move as low as 2.25 percent. Right now there are lenders offering 15 year refinance rates below the average rates in the state of Ohio. On our rate list for OH there are lenders offering 15 year refinance interest rates as low as 2.50 percent with points.
Mortgage rates currently on conforming loans are not the only types of mortgage rates to make record lows, average jumbo mortgage rates are just above record lows. Today's mortgage rates on 30 year jumbo mortgage loans are averaging 4.12 percent, down from an average 30 year jumbo mortgage rate of 4.15 percent.
The future direction of jumbo mortgage refinance rates will also be lower in Q4 of 2012 and into 2013. I believe 30 year jumbo mortgage interest rates could move down to the 3.75 percent range. Right now you can already find lenders offering 30 year jumbo refinance rates below the average.
Today's mortgage rates on 15 year jumbo loans are also just above a record low averaging 3.32 percent. The average 15 year jumbo mortgage rate was at 3.35 percent on Friday. You can find lenders on our rate list for the state of California offering 15 year jumbo refi rates below the average. Right now on our CA rate list CitiMortgage is offering 15 year refi rates at 3.25 percent with zero points.
Average 5 year conforming mortgage rates today are at 2.90 percent, just above an all-time record low of 2.85 percent. The average 5 year conventional mortgage rate is down from Friday's average of 2.93 percent. Right now in the state of Florida you can find lenders on our rate list offering 5 year conforming adjustable refinance rates at an incredibly low rate of 1.75 percent with 2 mortgage points.
Mortgage rates current on 5 year jumbo adjustable mortgage loans are averaging 2.81 percent, a decline from an average 5 year jumbo mortgage rate of 2.84 percent set on Friday. Right now on our 5 year jumbo adjustable refinance rates list for the state of Illionois there are lenders offering rates below the average of 2.81 percent. Third Federal Savings and Loan is offering 5 yea
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