Greek Crisis Sends Mortgage Rates Lower this Week

Mortgage rates recently hit a high for 2015 but will decline this week. This past Sunday, the citizens of Greece voted "no" to a referendum to accept austere bailout terms by creditors. The no vote sent bond yields lower in Europe and the United States.

Yields on 10 year U.S. Treasuries fell 12 basis points on Monday and are down another 5 basis points this morning. Lower bond yields will send mortgage rates lower because lenders set rates based on bond yields. Average 30 year mortgage rates are already down from 4.17 percent to 4.09 percent this morning.

30 year Mortgage Rates Will Fall Back Below 4.00%

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

Show Advertiser Disclosure

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 #1835285

5.440%

15-Year Fixed

5.250%

$5,000

Includes 0.750 points for $3,000

Lender Fees: $2,000

$3,216 /mo

Next >

NMLS #2059741

5.606%

15-Year Fixed

5.490%

$3,032

Includes 0.758 points for $3,032

Lender Fees: $0

$3,267 /mo

Next >

NMLS #1025894

5.650%

15-Year Fixed

5.490%

$4,172

Includes 0.868 points for $3,472

Lender Fees: $700

$3,267 /mo

Next >

NMLS #1312186

5.652%

15-Year Fixed

5.500%

$3,968

Includes 0.992 points for $3,968

Lender Fees: $0

$3,269 /mo

Next >

NMLS #324599

License: 324599

5.673%

15-Year Fixed

5.500%

$4,570

Includes 0.875 points for $3,500

Lender Fees: $1,070

$3,269 /mo

Next >

NMLS #6606

5.773%

15-Year Fixed

5.625%

$3,848

Includes 0.962 points for $3,848

Lender Fees: $0

$3,295 /mo

Next >

NMLS #1835285

6.262%

5-Year ARM

6.125%

$5,860

Includes 0.965 points for $3,860

Lender Fees: $2,000

$2,431 /mo

Next >

NMLS #1835285

6.356%

30-Year Fixed

6.250%

$4,500

Includes 0.625 points for $2,500

Lender Fees: $2,000

$2,463 /mo

Next >

NMLS #324599

License: 324599

6.494%

30-Year Fixed

6.375%

$5,070

Includes 1.000 points for $4,000

Lender Fees: $1,070

$2,496 /mo

Next >

NMLS #2059741

6.569%

30-Year Fixed

6.490%

$3,292

Includes 0.823 points for $3,292

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1312186

6.596%

30-Year Fixed

6.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,529 /mo

Next >

NMLS #1025894

6.600%

30-Year Fixed

6.490%

$4,592

Includes 0.973 points for $3,892

Lender Fees: $700

$2,526 /mo

Next >

NMLS #6606

6.714%

30-Year Fixed

6.625%

$3,684

Includes 0.921 points for $3,684

Lender Fees: $0

$2,562 /mo

Next >

NMLS #401822

6.734%

30-Year Fixed

6.625%

$4,495

Includes 0.625 points for $2,500

Lender Fees: $1,995

$2,562 /mo

Next >

NMLS #324599

License: 324599

6.743%

5-Year ARM

6.625%

$4,954

Includes 0.971 points for $3,884

Lender Fees: $1,070

$2,562 /mo

Next >

NMLS #1312186

6.968%

5-Year ARM

6.875%

$3,804

Includes 0.951 points for $3,804

Lender Fees: $0

$2,628 /mo

Next >

NMLS #401822

7.698%

15-Year Fixed

7.375%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$3,680 /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.

30 year rates will fall further this week and possibly fall back below 4.00 percent. The last time average 30 year mortgage rates were below 4.00 percent was at the end of May 2015. Mortgage rates were forecast to head higher in 2015 but so far that hasn't happened. 30 year rates were forecast to hit 5.00 percent this year but that is looking more and more unlikely.

In late June I wrote an article about the short term direction of mortgage rates being dependent on what plays out in Greece. The no vote on more austerity puts Greece one stop closer to a Grexit, an exit from the Eurozone. If Greece does leave the Eurozone, we could see 10 year bond yields and 30 year mortgage rates fall towards record lows set in 2013.

Bond Yields and Mortgage Rates Will Eventually Head Higher

After the dust settles in Greece, bond yields and mortgage rates will head higher because the Federal Reserve is set to increase interest rates. The Fed is expected to increase their key benchmark interest rate, the federal funds rate, sometime this year. An increase in the fed funds rate will send bond yields higher, which will send mortgage rates higher.

The CME Group's FedWatch has the probability of a 0.25 percent rate hike in September at 52.6 percent. A 0.25 percent rate hike will send 10 year bond yields higher by the same amount or more. 10 year yields are currently at 2.22 percent will probably move above 2.50 percent. 30 year mortgage rates currently at 4.09 percent will head towards 4.50 percent.

Higher Mortgage Rates Spurs Home Buying

Mortgage rates might head lower in the short term but in the long term, mortgage rates are going up. The hint of higher rates is already spurring home buying. The National Association of Realtors reported existing home sales in May soared to the highest mark since 2009 as new home sales climbed to a seven year high.

Lawrence Yun, chief economist of the National Association of REALTORS®, wrote "Buyers are coming back in force. One factor for the recent surge could have been due to the rising mortgage rates."

Listed below are current average mortgage rates today and the lowest mortgage refinance rates available in our rate database.

Average Mortgage Rates

• Conforming 30 Year Rates 4.09%
• Conforming 15 Year Rates 3.15%
• Conforming 5 Year Adjustable Rates 3.18%
• Jumbo 30 Year Rates 4.32%
• Jumbo 15 Year Rates 3.80%
• Jumbo 5 Year Adjustable Rates 3.70%

Lowest Refinance Rates

• 30 Year Conforming Rate - 3.625% with 1.10 mortgage points
• 15 Year Conforming Rate - 2.625% with 1.10 mortgage points
• 5 Year Conforming Adjustable Rate - 2.25% with 0.10 mortgage points
• 30 Year Jumbo Rate - 3.875% with 0.75 mortgage points
• 15 Year Jumbo Rate - 2.75% with 1.10 mortgage points
• 5 Year Jumbo Adjustable Rate - 2.50% with 1.10 mortgage points.

You can search for and compare rates in our state by searching our rate database: Mortgage Rates Today