Nothing appears to keep mortgage rates propped up this summer.  Shortly after the strong jobs report was released at the onset of July, mortgage rates jumped.  Within a few days of the rate increase, mortgage rates settled right back down again, a scenario that has repeated itself several times over the past few months.  The trading range for long term bonds and mortgages rates have held in a very tight span throughout the spring and summer months.  Of course, these market moves are good news for new home buyers and those looking to refinance an existing mortgage loan as mortgage rates and costs stay extremely low. 

For the week ending July 11, 30 year term mortgage rates dropped by an average of nine basis points with one basis point equal to 1/100th of a percent.  The average 30 year fixed rate conventional mortgage was lower by seven basis points.  The seven basis point cut pushed the 30 year mortgage rate down to 4.196% from 4.269% in the previous week.

30 year FHA mortgage rates available at the nation’s largest bank mortgage lenders dropped by six basis points.  The somewhat modest reduction in FHA rates helped to move the average FHA loan costs below four percent.  The average 30 year FHA mortgage rate in the current bank mortgage rate survey is 3.970%, down from 4.030% in the prior week.

Jumbo mortgage rates made the most aggressive move to the downside within the 30 year term category.  The average 30 year jumbo mortgage rate was trimmed back by over 13 basis points.  Jumbo rates ended the week at 4.090% compared to 4.225% in the preceding week. 

Short term mortgage rates were down by almost as much as the 30 tear home loans.  Ten, 15, and 20 year mortgage rates have been much more volatile, often experiencing wider swings relative to their duration as compared to the traditional, 30 year term loans.  On average, short term mortgage rates were cheaper by eight basis points.  15 year mortgage rates dropped by seven basis points to 3.349%, ten year mortgage rates declined by six basis points to 3.067%, and 20 year mortgage rates were cut by 13 basis points to an average rate of 3.953%.

The mortgage rate information obtained in the weekly mortgage survey assumes the purpose of the mortgage loan is to purchase an existing single family home as a primary residence with a loan amount of $250,000 and an estimated property value of $325,000.  The current mortgage interest rates found in the survey may change and are subject to change based on location, geography and other terms and conditions.

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