Mortgage Rates Decline but Will Increase In the Coming Months and Years

Average mortgage rates today are lower but will move higher in the coming months and years. Current 30 year conforming mortgage rates are averaging 3.92 percent, down from last week's average rate of 3.97 percent. 30 year mortgage rates dropped to a 20 month low of 3.73 percent in January.

Mortgage rates are only 20 basis points higher from the January low but the increase has already zapped refinancing demand. The Mortgage Bankers Association (MBA) announced mortgage applications for refinancing decreased 8 percent in their latest MBA Survey.

Mortgage rates are forecast to move higher in 2015, by the end of the year average 30 year rate is expected to be around 5.00 percent. Rates will increase this year because bond yields are forecast to move higher because the Federal Reserve is expected to increases the federal funds rate.

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

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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 Federal Reserve will start tightening monetary policy by increasing the federal funds rate probably starting in June. Mortgage rates are not directly tied to the federal funds rate but will move higher when the rate is increased.

Most mortgage lenders set mortgage rates based on U.S. Treasury yields. When the fed funds rate is increased, Treasury yields move higher, which forces lenders to increase their lending rates.

Current mortgage rates on 15 year conforming loans are averaging 3.00 percent, a decline from last week's average 15 year mortgage rate of 3.08 percent. 15 year rates are not far from the 20 month low of 2.96 percent set in January. By the end of this year 15 year refinance rates are expected to hit 4.00 percent.

Today's 30 year jumbo mortgage rates are averaging 4.23 percent, a sharp decline from the prior week's average 30 year jumbo rate of 4.37 percent. 30 year jumbo refinance rates are also expected to head towards 5.00 percent of the end of 2015.

15 year jumbo rates are currently averaging 4.06 percent, down 9 basis points from the previous week's average of 4.15 percent. The 17 basis point spread between average 30 year and 15 year jumbo rates is the lowest it has ever been. By the end of 2015 average 15 year jumbo rates will be between 4.60 percent and 4.80 percent.

Average 5 year conforming adjustable mortgage rates are at 3.48 percent today, up from last week's average 5 year adjustable rate of 3.44 percent. 5 year adjustable refinance rates are expected to hit 4.00 percent by the end of this year.

5 year jumbo adjustable mortgage rates are slightly higher today at 3.66 percent, up 1 basis point from last week's average rate. 5 year adjustable jumbo refi rates are also expected to be around 4.00 percent by the end of 2015.

The current cycle of higher mortgage rates and refinance rates is expected to last for at least a few years. If you're thinking about buying a home this year is probably as good as time as any in recent memory. Mortgage rates are still low and housing prices in many markets are still below the bubble peak of 2006/2007.

If you're in a position to refinance you should do so sooner in 2015 than later. Refinancing to a shorter term loan, like a 15 year loan instead of a 30 year loan, is an even smarter decision. You can save tens of thousands or even hundreds of thousands of dollars in mortgage interest by getting a shorter term loan.