Current 30 Year Mortgage Rates Still Low at 3.50 Percent but Will Increase in 2013

The Federal Reserve's multi-year campaign to revive the housing market by forcing mortgage rates down to record lows has finally started actually helping the housing market to recover. The Federal Reserve's policies created a refinance boom over the past three years as homeowners took advantage of low refinance rates. Many homeowners refinanced more than once the past two years as rates kept falling.

In 2013, a slew of housing reports have been released showing higher home prices, lower home inventory for sale, higher builder sentiment, and a growing optimism about housing again. The highest home affordability in a generation combined with the lowest mortgage rates in 65 years has made these times the best time to buy a home.

Home prices are moving higher in 2013 and mortgage rates will also move higher due to a stronger economy. Another factor that will send mortgage rates higher is the Federal Reserve ending their purchases of mortgage-backed securities and U.S. Treasuries.

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 #757416

5.648%

15-Year Fixed

5.500%

$3,848

Includes 0.962 points for $3,848

Lender Fees: $0

$3,269 /mo

Next >

NMLS #1067

5.735%

15-Year Fixed

5.625%

$2,848

Includes 0.712 points for $2,848

Lender Fees: $0

$3,295 /mo

Next >

NMLS #1025894

5.774%

15-Year Fixed

5.625%

$3,856

Includes 0.789 points for $3,156

Lender Fees: $700

$3,295 /mo

Next >

NMLS #1067

6.708%

30-Year Fixed

6.625%

$3,440

Includes 0.860 points for $3,440

Lender Fees: $0

$2,562 /mo

Next >

NMLS #757416

6.713%

30-Year Fixed

6.625%

$3,660

Includes 0.915 points for $3,660

Lender Fees: $0

$2,562 /mo

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NMLS #2473786

6.735%

30-Year Fixed

6.624%

$4,611

Includes 0.879 points for $3,516

Lender Fees: $1,095

$2,561 /mo

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NMLS #1025894

6.739%

30-Year Fixed

6.625%

$4,696

Includes 0.999 points for $3,996

Lender Fees: $700

$2,562 /mo

Next >

NMLS #399799

6.872%

30-Year Fixed

6.750%

$5,180

Includes 0.963 points for $3,852

Lender Fees: $1,328

$2,595 /mo

Next >

NMLS #401822

6.884%

30-Year Fixed

6.750%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$2,595 /mo

Next >

NMLS #3030

6.889%

15-Year Fixed

6.750%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,540 /mo

Next >

NMLS #3030

7.602%

30-Year Fixed

7.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,797 /mo

Next >

NMLS #401822

7.804%

15-Year Fixed

7.500%

$7,500

Includes 0.875 points for $3,500

Lender Fees: $4,000

$3,709 /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.

The Federal Reserve has been buying these assets to drive long term rates lower. While rates will move higher in 2013 they will still stay low, historically speaking. We expect 30 year conforming rates to remain below 4.00 percent.

Houses are starting to sell quicker in many areas of the country. Shannon Drury, a real estate agent with Prudential Connecticut Real Estate, said, "Housing inventory is low and homes that are priced right are selling quickly." Another factor contributing to higher selling prices is the drag on home prices from short sales and foreclosures is abating because of fewer distressed properties on the market.

Mortgage rates today on 30 year conforming loans are averaging 3.70 percent but you can find dozens of lenders quoting 30 year conforming rates below the average. Depending on the state you live in, many lenders in our database are quoting 30 year refinance rates as low as 3.125 percent with points. Without points, we have lenders quoting rates as low as 3.375 percent.

15 year conventional mortgage rates are averaging 2.92 percent, up from last week's average mortgage rate of 2.84 percent. Average 15 year rates are almost back near 3.00 percent but there are lenders quoting 15 year rates just above 2.00 percent. Depending on the state you check for rates, we have lenders in our database quoting 15 year rates as low as 2.25 percent with points. Without points the lowest rates quoted are around 2.50 percent.

Average jumbo mortgage rates on 30 year and 15 year mortgages are also higher this week over last. 30 year jumbo mortgage rates are averaging 4.20 percent, up from last week's average jumbo mortgage rate of 4.06 percent. 15 year jumbo rates are averaging 3.46 percent, up from the prior week's average jumbo rate of 3.34 percent.

The lowest 30 year jumbo refinance rates quoted by lenders in our database are at 3.50 percent with points. The lowest 30 year jumbo rates without points are quoted at 3.625 percent. The best 15 year jumbo rates are at 2.75 percent with points and the best 15 year rates without points are quoted at 3.00 percent.