15 Year Mortgage Rates Fall to 3.27%, Best Rates as Low as 2.875%

Average 15 year mortgage rates today are lower, following 10 year U.S. Treasury yields lower. Mortgage rates have fallen in 2014, just the opposite of what was expected to happen. When the Federal Reserve embarked on slowing their monthly buys of mortgage-backed securities (MBS) and long term U.S. Treasuries, interest rates were expected to move higher.

The Fed was buying $85 billion a month in these securities last year and has lowered the monthly amount down to $35 billion a month in July. The Fed also announced they would cease these purchases in October. So why haven't bond rates and mortgage rates moved higher in 2014?

The reason being that China has played a big roll in keeping bond yields low and indirectly keeping mortgage rates low. China has increased its purchasing of  U.S. bonds this year at the fastest pace in more than 30 years. When there is more demand for U.S. bonds, bond prices move higher and bond yields move lower.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

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The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #1689962

License: 02053435

4.863%

15-Year Fixed

4.750%

$3,020

Includes 0.755 points for $3,020

Lender Fees: $0

$3,112 /mo

Next >

NMLS #1025894

4.978%

15-Year Fixed

4.875%

$2,736

Includes 0.509 points for $2,036

Lender Fees: $700

$3,138 /mo

Next >

NMLS #3030

5.654%

15-Year Fixed

5.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$3,269 /mo

Next >

NMLS #1689962

License: 02053435

5.829%

30-Year Fixed

5.750%

$3,432

Includes 0.858 points for $3,432

Lender Fees: $0

$2,335 /mo

Next >

NMLS #401822

5.905%

15-Year Fixed

5.750%

$4,000

Includes 0.000 points for $0

Lender Fees: $4,000

$3,322 /mo

Next >

NMLS #401822

5.933%

30-Year Fixed

5.750%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$2,335 /mo

Next >

NMLS #1025894

5.956%

30-Year Fixed

5.875%

$3,504

Includes 0.701 points for $2,804

Lender Fees: $700

$2,367 /mo

Next >

NMLS #3030

6.458%

30-Year Fixed

6.375%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$2,496 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

Lenders tie mortgage rates to bond yields, so when bond yields move lower, mortgage rates also move lower. There is an interesting article in the Wall Street Journal that shows how much China has been buying this year. You can read the article here: China Plays a Big Role as U.S. Treasury Yields Fall.

Average Mortgage Rates Today July 21, 2014

• Conforming 30 Year Rates 4.27%
• Conforming 15 Year Rates 3.27%
• Conforming 5/1 ARM Rates 3.47%
• Jumbo 30 Year Rates 4.57%
• Jumbo 15 Year Rates 3.71%
• Jumbo 5/1 ARM Rates 3.51%

Lowest Mortgage Rates Available Today July 21, 2014

• Conforming 30 Year Rate 3.265%
• Conforming 15 Year Rate 2.875%
• Conforming 5/1 Rate 2.625%
• Jumbo 30 Year Rate 3.875%
• Jumbo 15 Year Rate 3.375%
• Jumbo 5/1 ARM Rate 2.625%

You can view lender's rates in your state by searching our tables here: Current Mortgage Rates.