Average 30 Year Mortgage Rates Today 4.24 Percent, Lowest Quoted Rates at 3.75 Percent

Mortgage rates today continue to decline as lenders lower rates. Average 30 year conforming mortgage rates are currently at 4.24 percent, down slightly from last week's average rate of 4.25 percent. Mortgage rates declined every week in 2014 so far, despite the Federal Reserve tapering their bond and mortgage-backed securities purchases. The Federal Reserve started slowing their monthly buys from $85 billion a month in December to $75 billion a month in January and down to $65 billion a month in February. During this time, 10 year bond yields have fallen from just under 3.00 percent down to yesterday's close of 2.67 percent.

Average 30 year mortgage rates started 2014 at 4.56 percent and are down 32 basis points to the current rate of 4.24 percent. The Fed will continue to scale back their purchases throughout the year and eventually will stop their buys sometime before the end of 2014. This change in policy will eventually lead to higher bond rates this year. Lenders tie mortgage rates to bond rates so when bond rates move higher, mortgage rates also move higher.

Average 30 Year Mortgage Rates Today to 424 Percent Lowest Quoted Rates at 375 PercentLowest Mortgage Rates at 3.75 Percent with 2 Mortgage Points

The lowest mortgage rates available right now on 30 year loans have also fallen since the beginning of this year. The lowest current mortgage rates quoted on our rate table for the state of California are at 3.75 percent with two mortgage points. In case you're unsure of what mortgage points are, they allow the borrower to "buy down" the mortgage rate by paying points upfront. 1 point is equal to 1 percent of the loan amount. In the beginning of 2014, the lowest 30 year conforming rates quoted were at 4.00 percent with two mortgage points but now rates are 0.25 percent lower.

The best mortgage rate without points quoted on our rate table is currently at 4.00 percent. In early January, the lowest rates available without points were at 4.25 percent. Both average rates and the lowest rates available are not expected to decline much from these levels. In fact, forecasts for mortgage rates in 2014 are higher and are forecasted to be just above 5.00 percent by the end of the year. If you're looking to buy a home and have been following rates, lock in a rate now before rates move any higher.

Conventional 15 Year Mortgage Rates Today

Today's mortgage rates on 15 year conforming loans are averaging 3.24 percent, down from the prior week's average 15 year mortgage rate of 3.29 percent. Average 15 year mortgage rates have also declined the past six weeks from a high of 3.60 percent in the beginning of January. As with 30 year rates, don't expect 15 year rates to fall much further so lock in your rate now if you can. The best mortgage rates quoted right now for 15 year loans on our rate table for New York are currently at 2.75 percent with just under 2 mortgage points. Six weeks ago, the best 15 year refinance rates with points on our rate table for NY and all other states were at 3.00 percent. Checking on the lowest 15 year refinancing rate without points, several lenders are quoting a rate of 3.25 percent.

Refinancing to a Shorter Term Loan

Mortgage interest rates are low right now and probably won't be this low again in our lifetime. If you currently have a 30 year mortgage and you're in a position to refinance, you should seriously consider a shorter term mortgage. Depending on your mortgage balance, refinancing to a 15 year or even 10 year mortgage will save you tens of thousands or even hundreds of thousands of dollars in mortgage interest payments. Shorter term mortgages have lower mortgage rates, which also saves you money.

Many people we've advised have been surprised to see that the change in monthly payments for a 15 year mortgage is not astronomically higher than their 30 year.  Take a few minutes to figure out what your payments would be on a 15 year mortgage here.  That, coupled with the difference in savings for the lifetime of the loan, definitely makes it worth taking the few minutes to see what your payments would be.

The best 30 year rates are at 3.75 percent and the best 15 year rates are 1 percent lower at 2.75 percent. Using a mortgage calculator, you can see that for each $100,000 borrowed at the rates listed above, the total interest payment on a 30 year loan would be $66,720.25.  A 15 year loan would incur $22,151.99 in interest for each $100k borrowed, which would mean saving $44,526.56 PER $100,000 borrowed. On a $500,000 loan, you would save over $200,000 in interest payments, plus you would own your home outright in half the time. The only drawback to a shorter term mortgage is the monthly payments are higher, but if you can afford the payments it's definitely worth it. 

Lowest 10 Year Mortgage Rates

Since we're talking about potentially saving a lot of money with shorter term mortgages, you may want to look into the best 10 year rates available. The best 10 year rates on our rate table for the state of Connecticut are currently at 2.39 percent with no mortgage points. Third Federal Bank is offering this 10 year rate on our table for CT and in most other states.

30 Year Jumbo Mortgage Rates

30 year jumbo mortgage rates today are averaging 4.33 percent, a decline from last week's average 30 year jumbo mortgage rate of 4.41 percent. As with conforming rates, right now is probably the low point for jumbo rates this year, so the sooner you lock in a rate the lower that rate will be. The lowest 30 year jumbo refinance rates right now on our rate table for the state of Florida are at 3.74 percent with 2 mortgage points from SunTrust Mortgage. The lowest 30 year jumbo refi rates right now without points in the state of FL are also from SunTrust Mortgage rate 4.15 percent.

Current 15 Year Jumbo Rates

Average 15 year jumbo mortgage rates are currently at 3.59 percent, down from the previous week's average 15 year jumbo mortgage rate of 3.67 percent. The lowest 15 year jumbo rates available on our rate tables for most states are just under 4.00 percent with points. The best 15 year jumbo rate without points in our database are at 4.25 percent.

Conforming 5/1 Adjustable Mortgage Rates

5/1 conforming adjustable mortgage rates are currently averaging 3.43 percent, down from last week's average 5 year adjustable rate of 3.45 percent. The lowest conforming rates quoted today in our rate database for Texas are much lower at 2.375 percent with 1 mortgage point. The best rate without points right now in our database for  TX is at 2.265 percent.

Jumbo 5 year Adjustable Mortgage Rates

Average 5 year jumbo rates are at 3.94 percent, up slightly from last week's average 5 year jumbo rate of 3.92 percent. The best 5 year jumbo rates with points in our database are currently at 2.25 percent with 2 points and at 2.75 percent with no points.

Author: Brian McKay
February 14th, 2014

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