Higher Mortgage Rates and Home Prices to Curb Price Appreciation in 2014

Higher mortgage rates and home prices are expected to slow down the price appreciation of homes next year. This isn't a surprise since the double-digit price increases of the past year are just not sustainable. Other factors that will keep a lid on home price increases for the next several years are a high unemployment rate and slow wage gains.

CoreLogic, the real estate data firm, released a report showing home prices increased 10.2 percent in the first quarter of 2013. This is the first double-digit price increase since the height of the housing bubble back in 2006. The largest price increases were in Phoenix, Arizona at 23 percent. Home prices were up 21 percent in Sacramento, California, and surprisingly, up 18 percent in Detroit, Michigan.

Best Markets for Home Price Gains

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 #2578474

5.389%

15-Year Fixed

5.250%

$3,650

Includes 0.650 points for $2,600

Lender Fees: $1,050

$3,216 /mo

Next >

NMLS #2059741

5.510%

15-Year Fixed

5.375%

$3,520

Includes 0.880 points for $3,520

Lender Fees: $0

$3,242 /mo

Next >

NMLS #1025894

5.632%

15-Year Fixed

5.490%

$3,688

Includes 0.747 points for $2,988

Lender Fees: $700

$3,267 /mo

Next >

NMLS #6606

5.767%

15-Year Fixed

5.625%

$3,696

Includes 0.924 points for $3,696

Lender Fees: $0

$3,295 /mo

Next >

NMLS #2578474

6.360%

30-Year Fixed

6.250%

$4,650

Includes 0.900 points for $3,600

Lender Fees: $1,050

$2,463 /mo

Next >

NMLS #2059741

6.548%

30-Year Fixed

6.490%

$2,412

Includes 0.603 points for $2,412

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1025894

6.597%

30-Year Fixed

6.490%

$4,460

Includes 0.940 points for $3,760

Lender Fees: $700

$2,526 /mo

Next >

NMLS #401822

6.758%

30-Year Fixed

6.625%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$2,562 /mo

Next >

NMLS #6606

6.823%

30-Year Fixed

6.740%

$3,392

Includes 0.848 points for $3,392

Lender Fees: $0

$2,592 /mo

Next >

NMLS #401822

7.764%

15-Year Fixed

7.500%

$6,500

Includes 0.625 points for $2,500

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 hardest hit markets during the housing bust are having the best price gains right now. Future price increases in these markets will probably be lower than the average increase in the coming years. Gains above 10 percent are not sustainable in the long run so gains of over 20 percent are highly unlikely.

The sharp increase in mortgage rates has subsided for now and rates will probably remain at current levels. Mortgage rates today on 30 year conforming loans are averaging 4.38 percent, a slight increase from last week's average 30 year mortgage rate of 4.35 percent. This week average 30 year mortgage rates will remain between 4.45 percent on the high end and 4.25 percent on the low end.

Best Refinance Rates Today

The best refinance rates today for 30 year conforming loans at MonitorBankRates.com are well below the average rate. The lowest refinance rate with 2 mortgage points in our database is at 3.875 percent from several different lenders. The lowest 30 year refinancing rate without points is at 4.25 percent.

Current mortgage rates on 15 year conventional loans are averaging 3.43 percent, no change from last week's average 15 year rate. Average 15 year rates will remain between 3.50 percent and 3.30 percent this week. The lowest 15 year quotes right now in our database with 1.50 points are at 2.875 percent. The lowest rates being offered without points right now are around 3.125 percent.

Today's Mortgage Rates on Jumbo Loans

Today's mortgage rates on 30 year jumbo loans are averaging 4.70 percent, up from last week's average 30 year jumbo rates of 4.69 percent. Jumbo mortgage rates on 30 year loans will remain between 4.75 percent and 4.60 percent this week. Right now the lowest 30 year jumbo refinance rates in our database are at 4.00 percent with 2 points and at 4.375 percent with no points.

Average 15 year jumbo rates today are at 4.03 percent, a slight increase from last week's average 15 year jumbo rate of 4.01 percent. 15 year jumbo rates this week will remain between 4.00 percent and 4.10 percent. Currently, the best 15 year jumbo mortgage interest rates in our database are at 3.25 percent with 1.625 points and at 3.75 percent with zero points.

Adjustable Mortgage Rates

5 year conforming adjustable mortgage rates are averaging 3.41 percent, up from last week's average 5 year adjustable rate of 3.40 percent. This coming week 5 year adjustable rates will remain near current levels. Currently, the lowest 5 year adjustable refinance rates are at 2.375 percent with 1.375 points and at 2.60 percent with no points.

Jumbo adjustable mortgage rates on 5 year loans are averaging 3.16 percent, a decline from last week's average jumbo adjustable rate of 3.20 percent. This coming week, 5 year jumbo rates will remain between 3.10 percent and 3.20 percent. The best jumbo refinance rates on 5 year loans are currently at 2.50 percent with 2 points and at 2.875 percent with zero points.