Mortgage Rates Decline as Home Prices Surge 7.5 Percent

Mortgage rates declined again this week, continuing to defy the experts who forecast higher rates in 2015. Average 30 year mortgage rates today are at 3.82 percent, down from last week's average rate of 3.86 percent. Low mortgage rates make homes more affordable but a shortage of homes available for sale is sending home prices higher.

The National Association of Realtors® reported the median existing home price in February, 2015 was 7.5 percent higher than a year ago. The median existing-home price for all housing types in February was $202,600. The NAR also reported this is the 36^th consecutive month of year-over-year price gains.

Mortgage rates will eventually move higher in 2015 but might not as high as expected. Forecasts are for average 30 year conforming rates to hit 5.00 percent by the end of the year. I believe forecasts will be lowered to around 4.50 percent to 4.75 percent sometime over the next couple months.

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 #1981224

5.300%

15-Year Fixed

5.000%

$7,944

Includes 0.986 points for $3,944

Lender Fees: $4,000

$3,164 /mo

Next >

NMLS #1025894

5.631%

15-Year Fixed

5.490%

$3,676

Includes 0.744 points for $2,976

Lender Fees: $700

$3,267 /mo

Next >

NMLS #757416

5.637%

15-Year Fixed

5.490%

$3,820

Includes 0.955 points for $3,820

Lender Fees: $0

$3,267 /mo

Next >

NMLS #613839

5.680%

15-Year Fixed

5.490%

$4,955

Includes 0.767 points for $3,068

Lender Fees: $1,887

$3,267 /mo

Next >

NMLS #2273319

License: CA-DOC902467

5.681%

15-Year Fixed

5.500%

$4,722

Includes 0.658 points for $2,632

Lender Fees: $2,090

$3,269 /mo

Next >

NMLS #1701910

5.808%

15-Year Fixed

5.750%

$1,490

Includes 0.000 points for $0

Lender Fees: $1,490

$3,322 /mo

Next >

NMLS #1981224

6.057%

5-Year ARM

5.875%

$7,880

Includes 0.970 points for $3,880

Lender Fees: $4,000

$2,367 /mo

Next >

NMLS #401822

6.214%

15-Year Fixed

6.000%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$3,376 /mo

Next >

NMLS #1981224

6.312%

30-Year Fixed

6.125%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$2,431 /mo

Next >

NMLS #2473786

6.483%

30-Year Fixed

6.375%

$4,539

Includes 0.861 points for $3,444

Lender Fees: $1,095

$2,496 /mo

Next >

NMLS #2561451

6.484%

30-Year Fixed

6.375%

$4,671

Includes 0.669 points for $2,676

Lender Fees: $1,995

$2,496 /mo

Next >

NMLS #757416

6.577%

30-Year Fixed

6.490%

$3,624

Includes 0.906 points for $3,624

Lender Fees: $0

$2,526 /mo

Next >

NMLS #1025894

6.599%

30-Year Fixed

6.490%

$4,548

Includes 0.962 points for $3,848

Lender Fees: $700

$2,526 /mo

Next >

NMLS #613839

6.610%

30-Year Fixed

6.490%

$5,019

Includes 0.783 points for $3,132

Lender Fees: $1,887

$2,526 /mo

Next >

NMLS #2273319

License: CA-DOC902467

6.646%

5-Year ARM

6.500%

$6,086

Includes 0.999 points for $3,996

Lender Fees: $2,090

$2,529 /mo

Next >

NMLS #399799

6.719%

30-Year Fixed

6.625%

$4,032

Includes 0.676 points for $2,704

Lender Fees: $1,328

$2,562 /mo

Next >

NMLS #2273319

License: CA-DOC902467

6.741%

30-Year Fixed

6.625%

$4,818

Includes 0.682 points for $2,728

Lender Fees: $2,090

$2,562 /mo

Next >

NMLS #401822

6.746%

30-Year Fixed

6.625%

$4,995

Includes 0.750 points for $3,000

Lender Fees: $1,995

$2,562 /mo

Next >

NMLS #1701910

6.786%

30-Year Fixed

6.750%

$1,490

Includes 0.000 points for $0

Lender Fees: $1,490

$2,595 /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.

Smart home buyers are taking advantage of the lowest rates in generations, especially home buyers who require jumbo mortgage loans. The Mortgage Bankers Association reported mortgage amounts are rising faster than home prices, driven higher by the strength in high end home sales that are financed.

Current mortgage rates on 15 year conforming loans are averaging 3.02 percent, down from last week's average rate of 3.08 percent. I didn't think it would happen again but we will probably see average 15 year rates fall back below 3.00 percent this week.

Mortgage interest rates haven't increased as much as expected because 10 year U.S. bond yields haven't increased. Forecasts had 10 year bond yields around 3.50 percent by mid-2015. Current 10 year yields are much lower at 1.88 percent.

Bond yields remain low because investors are rushing into bonds, getting a better yield in the U.S. current at 1.88 percent. Comparable German and Japanese 10 year bond yields are much lower. Current 10 year German bonds are yielding 0.22 percent and 10 year Japanese bonds are yielding 0.33 percent.

30 year jumbo mortgage rates are averaging 4.08 percent, a decline from the previous week's average jumbo rate of 4.17 percent. By the end of this week, average 30 year jumbo rates will fall back below 4.00 percent. There are lenders currently quoting 30 year jumbo refinance rates with points, well below 4.00 percent.

Today's mortgage rates on 15 year jumbo loans are averaging 4.07 percent, up from last week's average 15 year jumbo rate of 4.01 percent. If you're searching for a 15 year jumbo loan Citi Mortgage is quoting 15 year rates at 2.875 percent with 0.63 points.

Conforming 5 year adjustable mortgage rates are averaging 3.13 percent, down from the prior week's average 5 year rate of 3.26 percent. Current 5 year jumbo adjustable rates are averaging 3.50 percent, an increase from last week's average rate of 3.40 percent.

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