Mortgage Rates Drop Again as FOMC Continues Tapering

Mortgage analysts were expecting higher mortgage rates in 2014 because of the tapering of purchases by the Federal Open Market Committee (FOMC). Everyone expected mortgage rates to move higher when the FOMC started slowing their monthly purchases of mortgage-backed securities (MBS) and long term U.S. Treasuries.

The Fed has slowed their monthly purchases to $45 billion a month this month, down from $85 billion a month last year. So far this year average 30 year conforming mortgage rates have fallen from 4.55 percent to today's average rate of 4.20 percent. Average 15 year conforming mortgage rate have also fallen from 3.57 percent to 3.25 percent. These lower mortgage rates are great news if you're buying a home or if you're refinancing a mortgage.

For example, compare the difference between taking out a 30 year loan for $500,000 at 4.00 percent versus 4.50 percent. A rate difference of 0.50 percent lowers your monthly mortgage payment by about $150. Mortgage rates are expected to head towards 5.00 percent by the end of 2014, so in this example the same $500,000 mortgage at 5.00 percent will cost $300 more a month.

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

5.353%

15-Year Fixed

5.125%

$6,000

Includes 1.000 points for $4,000

Lender Fees: $2,000

$3,190 /mo

Next >

NMLS #401822

5.554%

15-Year Fixed

5.250%

$8,000

Includes 1.000 points for $4,000

Lender Fees: $4,000

$3,216 /mo

Next >

NMLS #1025894

5.634%

15-Year Fixed

5.490%

$3,760

Includes 0.765 points for $3,060

Lender Fees: $700

$3,267 /mo

Next >

NMLS #6606

5.884%

15-Year Fixed

5.740%

$3,732

Includes 0.933 points for $3,732

Lender Fees: $0

$3,320 /mo

Next >

NMLS #1835285

6.266%

30-Year Fixed

6.125%

$6,000

Includes 1.000 points for $4,000

Lender Fees: $2,000

$2,431 /mo

Next >

NMLS #1835285

6.371%

5-Year ARM

6.250%

$5,112

Includes 0.778 points for $3,112

Lender Fees: $2,000

$2,463 /mo

Next >

NMLS #1025894

6.582%

30-Year Fixed

6.490%

$3,856

Includes 0.789 points for $3,156

Lender Fees: $700

$2,526 /mo

Next >

NMLS #6606

6.715%

30-Year Fixed

6.625%

$3,708

Includes 0.927 points for $3,708

Lender Fees: $0

$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 #3030

6.784%

15-Year Fixed

6.625%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$3,512 /mo

Next >

NMLS #3030

7.476%

30-Year Fixed

7.375%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,763 /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.

As mortgage rates move higher, the dollar amount you quality for moves lower. There are monthly debt-to-income ratios that determine how much you quality for. Your monthly fixed expenses, housing costs, car payments, credit card payments, etc., can't exceed 43 percent to 45 percent of your gross income. In short, the longer you wait to buy a home, the less home you can afford.

When refinancing a mortgage loan to another loan with the same term, it makes financial sense if the new rate is at least 1.00 percent lower. How long you plan to stay in your home is also a factor to consider when refinancing. There are upfront costs when refinancing but you can recoup those costs by having a lower monthly mortgage payment. You have to plan on living in the home long enough to recoup the refinancing costs. You can use a mortgage calculator to see what options make the most sense for you.

Following is a list of average mortgage rates and the lowest mortgage rates available today.

Average Mortgage Rates Today

• 30 Year Fixed Conforming Rate 4.200%
• 15 Year Fixed Conforming Rate 3.250%
• 30 Year Fixed Jumbo Rate 4.580%
• 5/1 Year ARM Conforming Rate 3.270%
• 5/1 Year ARM Jumbo Rate 3.430%

Lowest Conforming Mortgage Rates Today

• 30 Year Rates 3.75%
• 15 Year Rates 2.75%
• 3/1 Year Rates 1.99%
• 5/1 Adjustable Rates 2.375%
• 7/1 Adjustable Rates 2.625%
• 10/1 Adjustable Rates 3.125%

Lowest Jumbo Mortgage Rates Today

• 30 Year Rates 3.875%
• 15 Year Rates 3.25%
• 3/1 Year Rates 1.99%
• 5/1 Adjustable Rates 2.25%
• 7/1 Adjustable Rates 2.875%
• 10/1 Adjustable Rates 3.375%