Mortgage Rates Hit New Lows for 2014

The direction of mortgage rates continues to baffle experts as rates hit new lows for 2014. Average mortgage rates made new lows this week on the heels of lower U.S. bond yields. Investors were spooked this past week by the fall in equity markets, sending investors to the safety of U.S. bonds which in turn, sent yields lower. Bond yields move in inverse to bond prices, so when prices move higher, yields move lower.

10 year bond yields took a nosedive, hitting new lows for 2014 and falling below 2.00 percent. Last week 10 year yields briefly touch a low of 1.86 percent, a mere 20 basis points above the all-time low set early in 2013. Yields rebounded to 2.20 percent today but the overall decrease sent 30 year mortgage rates below 4.00 percent.

Average 30 year mortgage rates fell to 3.93 percent yesterday, a record low for 2014, and have since rebounded to 3.94 percent. Average rates will move above 4.00 percent in the coming days but you can still find many lenders offering 30 year refinance rates below 4.00 percent. On the rate tables, the best 30 year refinance rates with points are at 3.625 percent. The best rate without points is also below 4.00 percent at 3.875 percent.

Average 15 year mortgage rates today are at 3.03 percent, unchanged from last week's average rate and a record low for 2014. Average 15 year rates will remain above 3.00 percent in the coming days but some lenders are quoting 15 year rates below 3.00 percent. The lowest 15 year refinance rates with points right now are at 2.75 percent with points.

Average jumbo mortgage rates also made record lows for 2014 this past week. Average 30 year jumbo mortgage rates hit a low of 4.13 percent and average 15 year jumbo rates fell to 3.84 percent. Average 30 year jumbo rates today are slightly higher at 4.17 percent and average 15 year jumbo rates are at 3.88 percent.

The lowest 30 year jumbo rates currently available are at 3.625 percent with 0.50 points and the lowest jumbo rate without points is at 3.75 percent. The best 15 year jumbo rate available is at 3.125 percent with 0.88 points and at 3.375 percent with zero points.

Mortgage rates have increased this week but average rates are just above lows for 2014 and lenders are still quoting even lower rates. Now is probably one of the best times to lock in low rates to refinance a mortgage or purchase home.

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