With Memorial Day weekend passing, mortgage rates are continuing their year long trend of moving lower.  This past week, the rate changes to the downside have made new mortgage borrowing costs only marginally cheaper than the week earlier but measurably less costly than where they were at the beginning of the year.  The summer home buying season looks to be favorable for borrowers and the U.S. economy.

Even though the stock market appears to be doing just fine, economic data has remained mixed with weak retail sales, GDP numbers, and home sales all disappointing the markets.  Monetary easing in the U.S. and around the world is greasing the palms of investors and pushing funds into the bond market helping to keep long term mortgage rates depressed.  Although, the Fed is curtailing their bond buying programs, the Fed continues to be a major buyer in the mortgage bond market especially while the supply of new mortgage backed securities has been shrinking.

The 30 year mortgage rate has recently drifted down to 4.195%, based on the most recent survey of bank mortgage rates conducted by SelectCDrates.com for the week ending May 23, 2014.  The average 30 year mortgage rate available from the nation’s largest bank mortgage lenders is almost 15 basis points cheaper than where they were at the start of May and a full 50 basis points or ½ of a percent lower than where they were at the start of 2014.  One basis point is equivalent to 1/100th of a percent.

30 year jumbo mortgage rates were are also down by about 15 basis points for the month and 43 basis points for the year.  The average 30 year jumbo mortgage rate coming from the mortgage lenders in the survey dropped this past week to 4.074%. 

FHA rates have lagged slightly behind the other two major 30 year mortgage loan products.  For the week ending May 23rd, FHA mortgage rates actually climbed slightly higher.  The average 30 year FHA loan rate moved up by 1.3 basis points to a rate of 3.963%.  For the month of May, 30 year FHA rates are down by 6.2 basis points and down by 38 basis points year to date.

15 year home loan rates displayed a slightly larger rate reduction for the week and matched the 30 year conforming loan for arte reductions for the month and year.  The average 15 year mortgage rate has slid to 3.331% for the third week of May.  The 15 year is roughly 16 basis points cheaper on the month and 47 basis points for the year.

The mortgage rate information obtained in the mortgage survey assumes the purpose of the mortgage loan is to purchase an existing single family home to be used as a primary residence with a loan amount of $250,000 and an estimated property value of $325,000.  The current mortgage interest rates may vary without prior notice from the mortgage lenders and are subject to change based on location, geography and other terms and conditions.

To review the latest mortgage rates and loan costs from the top bank mortgage lenders in this week’s bank mortgage rate survey dated May 23, 2014 please see the following mortgage rate tables: all mortgage rates, 30 year mortgage rates, 15 year mortgage rates, 20 year mortgage rates, 10 year mortgage rates, FHA mortgage rates and jumbo mortgage rates.

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