Mortgage Rates Edge Slightly Higher but Will Decline if Sequestration Hits

Average 30 year conforming mortgage rates edged slightly higher this week after staying flat for the past three weeks. 30 year mortgage rates increased 3 basis points to 3.56 percent with 0.7 mortgage points in Freddie Mac's Primary Mortgage Market Survey this week. Average 30 year mortgage rates are up from last week's average 30 year mortgage rate of 3.53 percent.

The latest political fight that could derail the economy and send interest rates and mortgage rates lower is Sequestration. The automatic federal spending cuts will start taking effect March 1, 2013, and could cause the loss of up to 750,000 jobs, increase the unemployment rate, and send interest rates reeling.

If sequestration hits, average mortgage rates which have moved higher this year will make new record lows. Rates have increased over the past three months but are not much higher than the all-time record low of 3.27 percent set in late November 2012. Current mortgage rates on 30 year conforming loan are averaging 3.69 percent in Bankrate's national rate survey.

These rates are average rates, so there are many lenders quoting mortgage refinance rates well below the averages. The lowest 30 year refinance rates in our lender rate database are around 3.125 percent with 3.25 percent with points. The lowest 30 year refinancing rates without points are still below the averages at 3.50 percent.

Average 15 year conventional mortgage rates are at 2.77 percent with 0.8 points in Freddie Mac's survey this week, unchanged from last week's average rate. Mortgage rates today on 15 year conforming loans are averaging 2.93 percent in Bankrate's national rate survey. The lowest 15 year conforming refi rates in our lender database are at 2.25 percent with points and 2.50 percent without points.

Average adjustable mortgage rates were mixed in Freddie Mac's survey this week. 5 year Treasury indexed adjustable mortgage rates averaged 2.64 percent with 0.5 mortgage points, unchanged from last week's average 5 year mortgage rate. 1 year adjustable mortgage rates averaged 2.65 percent with 0.4 points, up from last week's average of 2.61 percent.

The best 5 year adjustable refinance rates today in our lender database are at incredibly low rate of 1.50 percent with points and at 1.625 percent without points. Rates change constantly so check our rate database often to make sure you are getting the lowest mortgage quotes. No personal information is ever required to view a list of rates at MonitorBankRates.com.