30 Year Mortgage Rates Today at 3.88 Percent as Housing Starts Decline in February

Mortgage rates are lower today, following 10 year Treasury yields lower. Average 30 year mortgage rates today declined to 3.88 percent, down from the prior week's average rate of 3.92 percent. Mortgage rates might move sharply higher or lower this week after the Federal Open Market Committee (FOMC) wraps up their two day meeting tomorrow.

Equity markets are jittery ahead the expected announcement from the Fed tomorrow, the Dow is down 150 points. Analysts do not expect the Fed to announce a hike interest rates tomorrow but are instead looking for language on when a rate hike might take place.

Weekly Mortgage RatesWe believe a federal funds rate hike is most likely in the June meeting. Mortgage rates are not directly tied to the fed funds rate but U.S. Treasury yields are. A fed funds rate hike in June will send Treasury yields higher, which will send mortgage rates higher.

Housing starts fell 17 percent in February to 897,000 units, lower than the forecast of 1,097,000. February's number is the first time since last July the number was below 1 million. The sharp decline was primarily due to the bad weather, analysts expect the March number to be back above 1 million. You can view the entire report on new construction: New Residential Construction in February 2015.

Mortgage Rates TodayAverage 30 year conforming rates are at 3.88 percent but there are many lenders quoting 30 year rates below the average. The lowest 30 year refinance rates on the rate table for California are at 3.625 percent with 1 mortgage point.

The more points you are willing to pay the lower the mortgage rate you can get on a loan. Points on loans are available in quarter point increments. Most lenders only allow you to "buy down" the rate with a maximum of 2 points.

Current mortgage rates on 15 year conforming loans are averaging 3.05 percent, a decline from last week's average rate of 3.08 percent. If the Fed hints that a rate hike will come later than June, bonds will rally and we could see 15 year mortgage rates fall back below 3.00 percent.

The best 15 year refinance rates available on the rate table for Connecticut are at 2.875 percent with 1.125 mortgage points. The best rates without points on the table for Connecticut are at 3.125 percent.

Today's mortgage rates on 30 year jumbo loans are averaging 4.22 percent, down 11 basis points from last week's average jumbo rate of 4.33 percent. The lowest 30 year jumbo refinance rate on the table for Colorado is at 3.50 percent with 1 mortgage point.

15 year jumbo mortgage rates are also down 11 basis points this week. The current average rate is 3.94 percent, down from last week's average of 4.05 percent. The lowest 15 year refinance rate available on the table for Florida is at 3.50 percent with 1 mortgage point.

Conforming 5 year adjustable mortgage rates are averaging 3.34 percent, a decline of 1 basis point from the prior week's average of 3.35 percent. The lowest 5 year adjustable refinance rates on the table for Texas are at 2.625 percent with 1 mortgage point. The lowest rate without points is at 2.875 percent.

Jumbo adjustable mortgage rates on 5 year loans are averaging 3.44 percent, down from last week's average of 3.52 percent. The lowest 5 year jumbo adjustable rates currently available in Oregon are at 2.875 percent with 1 point and at 3.125 percent with no points.


Author: Brian McKay
March 17th, 2015

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