Mortgage-backed securities (MBS), which most directly influence interest rates, made some gains yesterday. Overall, mortgage interest rates moved lower on Tuesday, marking the second consecutive day that rates have been hovering in lower territories. The improvements in mortgage rates were mainly fueled by the European Central Bank’s move to introduce quantitative easing earlier this week. Indirectly U.S. bonds benefited from the move and mortgage rates drifted lower.
Now, we are seeing some sell-off in the bond market this morning, which could potentially lead to higher mortgage rates at the end of the day. The only significant event, which may impact mortgage rates is the 10 Year Treasury Note auction, which kicks off at 1 PM. In case the auction goes poorly, it could have a negative effect on MBS pricing and consequently on mortgage rates.
Leading real estate website, Zillow, announced on Tuesday, that the interest rate on the 30-year fixed mortgage dropped to 3.73% this week, a lower rate compared to the previous 3.83% that it held a week earlier. According to the firm, the mortgage rate on the 15-year fixed loan is currently hovering at 2.92%, while the 5/1 ARM is coming out at 2.89%.
Looking at current mortgage rates by state, in California the 30-year fixed mortgage schemes are starting at 3.71%, a slide of 1 basis point compared to data from a week ago. Actually, California is the only state where the 30-year FRM had a downtick, in all the other states the average mortgage rate on this type of loan ticked up, according to the Zillow Mortgage Rate Ticker.
For instance, in Colorado the 30-year fixed mortgage loan now hovers at 3.73%, up by 8 basis points since last week’s rate quote (3.65%). The same can be said the 30-year fixed mortgage rate in Florida, as the average rate now stands at 3.76%. A week earlier this type of mortgage loan was clinging at 3.70%. Moving on to other states, in Illinois the 30-year FRM is quoted at 3.74%, an increase of 4 basis points, while in Massachusetts the same type of mortgage averaged 3.71% this week, an increase of 1 basis point.
Heading over to some of the major U.S. mortgage loan originators, at Bank of America (NYSE:BAC) the 30-year fixed home loan is now quoted at a rate of 3.750%. The 15-year fixed home purchase loan has been holding steady in the last few days, this type of mortgage stands at 3.000%. Borrowers, who are interested in refinancing an existing mortgage, may want to take a look at BofA’s 30-year FRM, as it’s available today at a rate of 3.875%. On the other hand, the 15-year fixed refi mortgage is up for grabs at a rate of 3.125%.
Another major lender, Wells Fargo (NYSE:WFC), advertises the 30-year conventional home loan at a rate of 4.000% this week. Those preferring the 15-year fixed home loan alternative, can expect to pay 3.500% interest cost. Under its refinance loan program, the financial institution offers the 30-year FRM for as low as 4.125% on Wednesday. As far as the shorter-term, 15-year FRM is concerned, it can be secured at a rate of 3.500%.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below. To calculate your monthly mortgage payment, feel free to use our featured mortgage calculator.