FACT:  Mortgage rates have shattered historic levels consistently for almost a year and a half and yet refinance volume has been consistently weak.

During the refi boom, people refinanced without blinking at record numbers. During the past year and a half of extremely low mortgage rates, a new smarter post mortgage meltdown borrower has carefully and tediously positioned them-self for the long run.

That brings us to the death of refinance. A reality that’s soon to hit, which looms in the back of many mortgage industry veterans’ minds like an unpayable tax lien.

Right now approximately 65 percent of mortgage applications are for refinance. Don’t be fooled by this statistic. Purchase volume is at an ALL TIME LOW. Even with sub 5 percent mortgage rates available to well-qualified consumers, mortgage refinance is slow.

When rates do rise to 6%, and they will, the drop off in refinance activity will be epic. Refinance volume will likely drop by 80%.  The classic rate and term (it makes sense),  lower the rate and in turn the payment, refi will be pretty much gone for years. Who in the world that qualifies for a refinance (guidelines and equity ain’t changin’ any time soon) will be at a rate high enough to be in need of a 6.25% 30 year fixed.  The answer is nobody. Only those rare borrowers who have equity left in their homes, and that qualify for a refi which means lots of LIQUID assets, and are willing to accept higher rates to take cash out  will consider refinancing. The same people that buy Kirby Vacuums at 3 grand a pop.

I talked to Scott Everett, the President of Supreme Lending, a large mortgage banker based in Dallas, TX about about this. Scott Everett is the only person I know that predicted the demise of option arms well before it happened. “When mortgage rates rise do you feel the refinance market will completely dry up?” I asked. ”There will always be some, but it will certainly die off” he told me. A simple but effective answer.

The death of refinance will effect mortgage professionals most. How bad it hurts them will depend on the level of purchase activity when refinance dies. If rates rise and purchase activity remains near record lows, the toughest of the tough, best of the best in the mortgage industry, who have ridden out the storm to this point will receive a knock out punch from the business that will surely end careers.

FHA 30 year fixed rates continue to mirror those of standard (conforming Freddie Mac FRE and Fannie Mae FNM insured) mortgages, with the exception of the 15 year fixed FHA rate which is slightly higher at 4.5.

Jumbo 30 year fixed rates, for true jumbo mortgages exceeding jumbo conforming loan amounts, are at 5.625. 30 year fixed loans falling within conforming jumbo limits, which vary for each county depending on median home prices, are available fixed for 30 years at 4.875%. 

Looking for the lowest mortgage rates today? Search local mortgage rates here.

Mortgage-backed securities prices, which drive mortgage rates in the opposite direction are up today, +7/32 (FNMA 30-yr 4.5 at 101.12). As a result mortgage rates have stabilized further at current levels. The benchmark 10 year treasury yield, used to forecast mortgage rates, is at 3.69, down -0.01.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets on a daily basis. Rates in this article are verified as being available to well-qualified consumers today at .07 to 1 point origination, considered standard. These rates are referred to in the mortgage industry as “par rates”.

To display today’s mortgage rates on your website or blog use our today’s mortgage rates widget.

Looking for the lowest possible mortgage interest rates? Search local mortgage interest rates here.

Current FHA mortgage rates continue to be about the same as conforming. The current FHA 30 year fixed rate is 4.75, unchanged. The current 15 year fixed rate is 4.5, and 5/1 ARM rate 3.625, both unchanged. FHA loans come with higher costs due to MI and other FHA fees.

Current jumbo mortgage rates are, you guessed it, unchanged. The current jumbo 30 year fixed rate is 5.625.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets daily to determine the most accurate mortgage rates associated with a standard .07 to 1 point origination, available to well-qualified consumers. These mortgage rates are well known in the mortgage industry as “par rates”. These, not national averages, are the rates consumers should shoot for.

Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, are up a tad today +2/32 (FNMA 30-yr 4.5 at 101.07).

The benchmark 10 year treasury yield, used to forecast mortgage interest rates, is unchanged and at 3.7 as of 8:52 AM PST.

To display current mortgage interest rates on your website or blog use our mortgage rates widget.

Looking for the lowest mortgage rates? Click here to search local mortgage rates.

FHA mortgage rates, also flat, continue to mirror rates of conforming mortgages. It should be noted that FHA loans come with much higher costs due to MI and FHA fees not associated with a standard Freddie (FRE) or Fannie Mae (FNM) insured mortgage. Also the FHA 15 year fixed rate is a 1/4 higher than the conforming rate and at 4.5%.

Jumbo mortgage rates, though not moved by the same MBS prices as conforming and FHA loans, remain steady as well. The current jumbo 30 year fixed rate remains 5.625 with a few lenders’ like Wells Fargo offering 5.5 for borrowers with extremely low LTV’s.

Mortgage-backed securities prices, which move mortgage rates their opposite, are flat today.

To display current mortgage rates on your website or blog use our mortgage rates widget.

FHA mortgage rates continue to be nearly the same as conforming mortgage rates. FHA 30 year fixed loans can be obtained at 4.75 with about a point origination today. The big difference though is in closing costs. MI and other FHA fees make FHA loans far more expensive.

Nothing new with 30 year fixed jumbo rates which remain at 5.625. 5.5 is available to borrowers with an extremely low loan to value, under 60% LTV.

Looking for the lowest mortgage rates today? Click here to search local mortgage rates.

Mortgage-backed securities, which drive mortgage rates in the opposite direction, are unchanged today. The benchmark 10 year treasury yield, used to forecast 30 year mortgage rates, is up +0.03 and at 3.71 as of 12:16 PM PST.

FreeRateUpdate.com researches over 2 dozen wholesale mortgage lenders’ rate sheets to determine the most accurate mortgage rates. These rates are usually 1/4 below reported national averages, available to well-qualified consumers at a standard .07 to 1 point origination, and are commonly referred to in the mortgage industry as “par rates”.

To display today’s mortgage rates on your website or blog use our today’s mortgage rates widget.

Other mortgage rates include the 15 year fixed rate, at 4.25%, and the 5/1 ARM at 3.625%.

The current jumbo 30 year fixed rate remains 5.625, with 5.5 available to consumers with a loan to value of 60% or less. That means on a purchase loan you’d have to put at least 40% down to get the better rate.

Looking for the lowest current mortgage rates? Search local mortgage rates here.

Current mortgage rates are un-stable thanks to a size-able decline in mortgage-backed securities prices Friday. MBS prices move mortgage rates in the opposite direction. On Friday, MBS prices dipped as much as -14/32 (FNMA 30-yr 4.5 at 101.00), before ending the day down -8/32.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ on a daily basis to determine the most accurate mortgage rates. The mortgage rates in this article are verified available today for well-qualified consumers with .07 to 1 point origination. The rates discussed are well known in the mortgage industry as “par rates”.

To display current mortgage rates on your website or blog use our free mortgage rates widget.

Looking for the lowest current mortgage rates? Search local mortgage rates here.

Current FHA mortgage rates remain nearly the same as interest rates for conforming a.k.a. standard 30 year fixed mortgages. The exception is the FHA 15 year fixed fixed rate, which is 1/4 higher and at 4.5%.

Current jumbo mortgage rates are steady with the jumbo 30 year fixed rate holding at 5.625. 5.5 is available for borrowers with an extremely low LTV, 60 percent loan to value or less.

Though 30 year fixed mortgage rates have held steady all week, current 30 year fixed mortgage rates are at risk to rise. Following a substantial decline in mortgage-backed securities prices, which move mortgage rates on the opposite direction, this morning -14/32 (FNMA 30-yr 4.5 at 101.00), the risk factor for mortgage rates rising at any moment shot up.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets to determine the most accurate mortgage rates. The mortgage rates we report are verified to be available with about 1 point origination for well-qualified consumers.

To display current mortgage rates on your website or blog use our mortgage rates widget.

The benchmark 10 year treasury yield, used by some to forecast mortgage rates, is at 3.6 down -0.01 on the day. The yield dipped below 3.2 when 30 year mortgage rates were verified at 4.5%, an all time record low.

Looking for the lowest current mortgage rates? Search local mortgage rates here.

Jumbo mortgage rates, for true jumbo loans exceeding conforming jumbo limits, are at 5.625 30 years fixed. 5.5 is available to consumers with extremely low loan to value ratios.

FHA mortgage rates are nearly identical to conforming rates. FHA loans come with significantly higher fees, mostly from up front costs charged by FHA. MI is associated with all FHA loans as well. MI is an up front fee charged as a percentage of the amount financed and will be increased to 2.25% of the loan amount of April 5th of this year.

To determine the most accurate mortgage rates FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets on a daily basis. All mortgage rates reported in this article are available to well qualified consumers at the standard .07 to 1 point origination.

To display current mortgage rates on your website or blog use our free mortgage rates widget.

Looking for the lowest mortgage rates today? Search local mortgage rates here.

Today’s Mortgage Rates According to FreeRateUpdate.com Research of Wholesale Mortgage Lenders’ Rate Sheets

30 year fixed mortgage rates today are at 4.75, for both conforming (standard Freddie MAC FRE and Fannie Mae FNM insured) and FHA (Federal Housing Administration) mortgages. Though conforming and FHA mortgages can be obtained at the same rate with about 1 point origination, FHA loans are far more expensive due to MI and other FHA mandated fees.

5/1 ARM rates are extremely low and also the same for conforming and FHA loans, at 3.625.

Today’s jumbo 30 year fixed rate, for jumbo mortgages exceeding the “jumbo conforming” limits (true jumbo a.k.a. super jumbo), is 5.625. Jumbo 30 year fixed mortgages can be obtained at a slightly better rate of 5.5 by borrowers with an extremely low LTV.

To display today’s mortgage rates on your website or blog please use our mortgage rates widget.

The rates reported in this article are available to well-qualified consumers with about 1 point origination as verified by FreeRateUpdate.com research of over 2 dozen wholesale lenders’ rate sheets. These rates are well known in the mortgage industry as “par rates” and are typically 1/4 percent below national averages.

The Fed’s Beige Book revealed a ‘modest’ improvement in the economy in 9 of 12 regions. The data’s effect on mortgage rates was limited. Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, are up +5/32 (FNMA 30-yr 4.5 at 101.08). As a result of the gain in MBS prices it’s possible lenders’ will re-price favorably this afternoon. That means whatever it may have cost yesterday to secure a 4.75% 30 year fixed mortgage, it’s likely to be a little less today. 

The benchmark 10 year treasury yield, a leading indicator used to forecast mortgage rates, is at 3.61, up +0.01 on the day. The yield dipped below 3.2 when 30 year fixed mortgage rates reached 4.5% late last year.

Looking for the lowest current mortgage rates? Search local mortgage rates here.

The current conforming 30 year fixed rate, as stated above, remains 4.75% down from early last week. The current conforming 15 year fixed rate is 4.25%. The current conforming 5/1 ARM rate is 3.625%, down an 1/8 from early last week.

Current FHA mortgage rates the same as current conforming mortgage rates with the exception of the FHA 15 year fixed, which is at 4.5%. FHA loans come with MI and other FHA fees which make them far more expensive despite origination (points) being the same.

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets to determine the most accurate mortgage rates. All mortgage rates mentioned in this article are available to well-qualified borrowers with about 1 point origination.

To display current mortgage rates on your website or blog use our mortgage rates widget.