European Crisis Eases as Focus Shifts to U.S. Economy Sending Mortgage Rates Today Lower

Average mortgage rates today declined on lower bond yields as the focus shifts from the crisis in Europe to the struggling economy in the United States. Last Friday bond yields increased on the news the European Financial Stability Facility (EFSF) would lend money directly to banks; this sent mortgage rates higher over the weekend.

The market enthusiasm was short lived, bond yields declined yesterday because of the ongoing fears the U.S. economy is slowing and might head back into a recession. The negative sentiment caused current mortgage rates on 30 conforming loans to decline to 3.66 percent, down from an average 30 year mortgage rate of 3.66 percent.

Today's mortgage rates on 15 year conventional loans are also lower averaging 3.02 percent, down from an average 15 year mortgage interest rate of 3.04 percent. We will probably see 15 year conforming mortgage rates move back below 3.00 this week if the negative sentiment continues to send markets 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 #274058

5.552%

15-Year Fixed

5.375%

$4,638

Includes 0.637 points for $2,548

Lender Fees: $2,090

$3,242 /mo

Next >

NMLS #401822

5.554%

15-Year Fixed

5.250%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$3,216 /mo

Next >

NMLS #1025894

5.756%

15-Year Fixed

5.625%

$3,404

Includes 0.676 points for $2,704

Lender Fees: $700

$3,295 /mo

Next >

NMLS #6606

5.884%

15-Year Fixed

5.740%

$3,732

Includes 0.933 points for $3,732

Lender Fees: $0

$3,320 /mo

Next >

NMLS #274058

6.515%

5-Year ARM

6.375%

$5,894

Includes 0.951 points for $3,804

Lender Fees: $2,090

$2,496 /mo

Next >

NMLS #274058

6.632%

30-Year Fixed

6.500%

$5,506

Includes 0.854 points for $3,416

Lender Fees: $2,090

$2,529 /mo

Next >

NMLS #1025894

6.721%

30-Year Fixed

6.625%

$3,956

Includes 0.814 points for $3,256

Lender Fees: $700

$2,562 /mo

Next >

NMLS #401822

6.770%

30-Year Fixed

6.625%

$5,995

Includes 1.000 points for $4,000

Lender Fees: $1,995

$2,562 /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 #6606

6.960%

30-Year Fixed

6.875%

$3,468

Includes 0.867 points for $3,468

Lender Fees: $0

$2,628 /mo

Next >

NMLS #3030

7.589%

30-Year Fixed

7.500%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$2,797 /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.

Mortgage rates on 30 year jumbo loans are averaging 4.26 percent, unchanged from yesterday's average jumbo rate. Mortgage rates currently on 15 year jumbo loans are lower today averaging 3.53 percent, down from yesterday's average 15 year rate of 3.55 percent.

Adjustable mortgage rates are also mixed. Current 5 year conforming mortgage rates are averaging 2.71 percent, down from yesterday's average 5 year adjustable rate of 2.73 percent. Jumbo adjustable mortgage rates are averaging 2.84 percent, unchanged from yesterday's average jumbo rate.

On a positive not signs that the housing market is finally recovering is event in The Standard & Poor’s/Case-Shiller home price index which showed increases in 19 of the 20 cities tracked by the index. This the second straight month that home prices have risen in a majority of U.S. cities.

Another recent sign housing is recovering and might lead the U.S. economy to a stronger recovery is new home construction. Construction spending rose 0.9 percent in May from April, the Commerce Department reported yesterday. This is the second straight monthly increase and the biggest percentage gain since December.

A stronger economy will lead to higher mortgage rates and refinance rates. If you're planning on buying a home but have been waiting on the sidelines for mortgage rates to drop further don't count on rates going much lower. If you're thinking about refinancing and are waiting for refinance rates to drop even lower don't count on that happening either.

Interest rates probably won't increase by much over the next couple of months rates won't drop much either. That is unless the U.S. economy falls back into a recession.