Low Mortgage Rates and Low Home Inventory Cause Biggest Home Price Gains Since 2006

Thanks to low mortgage rates and a low inventory of homes available for sale, the housing market is continuing its strong comeback from the biggest bust since the Great Depression. The S&P/Case-Shiller Home Price Indices for the 20-City Composite showed average home prices increased 8.1% in the 12 months ending in January 2013. This is the largest year over year gain since the height of the housing bubble back in 2006.

The increase in home prices varied in different cities. The largest increase was in Phoenix, AZ, with a gain of 23.2 percent. The smallest gain year over year was in New York, where the average price increase was only 0.6 percent. The lowest current mortgage rates in a generation along with an economy that is finally gaining traction is bringing buyers back into the market.

Home prices are projected to continue to move higher in the coming years but current prices are still down around 30 percent from the peak of June/July of 2006. CoreLogic predicts home prices will increase 6 percent in 2013 after increasing 7.5 percent in 2012. New home starts are also increasing as home builders are optimistic again about the future.

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 #2562839

4.924%

15-Year Fixed

4.750%

$4,625

Includes 0.875 points for $3,500

Lender Fees: $1,125

$3,112 /mo

Next >

NMLS #2473786

4.934%

15-Year Fixed

4.750%

$4,887

Includes 0.948 points for $3,792

Lender Fees: $1,095

$3,112 /mo

Next >

NMLS #1835285

5.007%

15-Year Fixed

4.875%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,138 /mo

Next >

NMLS #1935422

License: 60DBO-109262

5.047%

15-Year Fixed

4.750%

$7,933

Includes 0.662 points for $2,648

Lender Fees: $5,285

$3,112 /mo

Next >

NMLS #324599

License: 324599

5.063%

15-Year Fixed

4.875%

$5,070

Includes 1.000 points for $4,000

Lender Fees: $1,070

$3,138 /mo

Next >

NMLS #757416

5.140%

15-Year Fixed

4.990%

$3,960

Includes 0.990 points for $3,960

Lender Fees: $0

$3,162 /mo

Next >

NMLS #1935422

License: 60DBO-109262

5.300%

5-Year ARM

5.125%

$7,925

Includes 0.660 points for $2,640

Lender Fees: $5,285

$2,178 /mo

Next >

NMLS #2473786

5.361%

5-Year ARM

5.250%

$4,967

Includes 0.968 points for $3,872

Lender Fees: $1,095

$2,209 /mo

Next >

NMLS #6606

5.381%

15-Year Fixed

5.240%

$3,708

Includes 0.927 points for $3,708

Lender Fees: $0

$3,214 /mo

Next >

NMLS #1025894

5.508%

15-Year Fixed

5.375%

$3,480

Includes 0.695 points for $2,780

Lender Fees: $700

$3,242 /mo

Next >

NMLS #1835285

5.578%

5-Year ARM

5.500%

$3,439

Includes 0.735 points for $2,940

Lender Fees: $499

$2,272 /mo

Next >

NMLS #1835285

5.817%

30-Year Fixed

5.750%

$2,927

Includes 0.607 points for $2,428

Lender Fees: $499

$2,335 /mo

Next >

NMLS #1935422

License: 60DBO-109262

5.827%

30-Year Fixed

5.625%

$8,917

Includes 0.908 points for $3,632

Lender Fees: $5,285

$2,303 /mo

Next >

NMLS #2562839

5.847%

5-Year ARM

5.750%

$4,229

Includes 0.776 points for $3,104

Lender Fees: $1,125

$2,335 /mo

Next >

NMLS #2473786

5.861%

30-Year Fixed

5.750%

$4,847

Includes 0.938 points for $3,752

Lender Fees: $1,095

$2,335 /mo

Next >

NMLS #2562839

5.867%

30-Year Fixed

5.750%

$5,125

Includes 1.000 points for $4,000

Lender Fees: $1,125

$2,335 /mo

Next >

NMLS #324599

License: 324599

5.979%

30-Year Fixed

5.875%

$4,570

Includes 0.875 points for $3,500

Lender Fees: $1,070

$2,367 /mo

Next >

NMLS #757416

6.045%

30-Year Fixed

5.990%

$2,376

Includes 0.594 points for $2,376

Lender Fees: $0

$2,396 /mo

Next >

NMLS #6606

6.205%

30-Year Fixed

6.125%

$3,420

Includes 0.855 points for $3,420

Lender Fees: $0

$2,431 /mo

Next >

NMLS #1025894

6.208%

30-Year Fixed

6.125%

$3,520

Includes 0.705 points for $2,820

Lender Fees: $700

$2,431 /mo

Next >

NMLS #399799

6.218%

30-Year Fixed

6.125%

$4,111

Includes 0.696 points for $2,784

Lender Fees: $1,327

$2,431 /mo

Next >

NMLS #324599

License: 324599

6.222%

5-Year ARM

6.125%

$4,206

Includes 0.784 points for $3,136

Lender Fees: $1,070

$2,431 /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 is continuing to do its part to help the housing market recover by suppressing mortgage rates. The Federal Reserve has been buying long term Treasuries and mortgage-backed securities to drive mortgage rates down. Many analysts believed the Fed would slow or stop their purchases since the economy and housing is gaining momentum.

In the March Federal Open Market Committee (FOMC) meeting, the committee decided to continue purchasing $40 billion a month in mortgage backed securities and $45 billion a month in long term Treasuries. Mortgage refinance rates are projected to increase from current levels but the Fed's actions will keep a lid on the increase in rates.

Mortgage rates today on 30 year conforming loans are averaging 3.70 percent, up from the prior week's average 30 year mortgage rate of 3.66 percent. 30 year mortgage interest rates will probably remain in a range of 3.50 percent to 4.00 percent in 2013. There are lenders quoting 30 year conforming refinance rates today well below the average of 3.70 percent.

The lowest 30 year refinance rates in our database of lender rates are at 3.25 percent with 2 mortgage discount points. The lowest 30 year conforming refinancing rates without points are around 3.50 percent. These advertised rates are for borrowers who have a credit score of 680 or higher.