Compare Jumbo Mortgage Rates and Lenders
Review current jumbo mortgage rates for August 21, 2017 and get personalized mortgage quotes from top lenders
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Mortgage Rate ReportMonday, August 21, 2017
Mortgage rates continued their winning streak, remaining steady for the fourth consecutive week following the Federal Reserve's decision to leave interest rates unchanged at its July meeting. The Fed pointed to low inflation as a counterbalance to an improved labor market as well as expanding household spending and business investment in its decision to maintain the target range for the federal funds rate at 1.000% to 1.250%. Industry analysts had expected the Fed to stay put on interest rates at the July meeting so the decision has had relatively little impact on mortgage rates since the announcement. A strong jobs report to open August failed to move rates higher as expected and instead key mortgage rates remained flat on the week and continue to hover near their low point for 2017.
The interest rate for a 30 year fixed rate mortgage held steady at 3.625% and jumbo mortgage rates also remained flat at 3.750%, while other mortgage programs followed suit. The interest rate for a 15 year mortgage stayed put at 2.875% and the interest rate on a 5/1 adjustable rate mortgage (ARM) held at 2.750%, as lenders attempt to pull borrowers into shorter-term mortgage programs. VA mortgage rates remained at 3.250%, matching FHA mortgage rates which were also steady at 3.250%, with both programs remaining enticing for home buyers seeking low or no down payment loan options. Non-owner occupied mortgage rates were the sole mover on the week, dipping 0.125% to 3.750%.
After a turbulent first quarter of 2017, mortgage rates were relatively steady and attractive for much of the the second quarter. As we move deeper into the third quarter, the Federal Reserve's decision to hold interest rates at their current level further stabilized the mortgage market. Another week of flat rates means we are approaching multiple months of relatively stable and low mortgage rates that have brought increased certainty to the marketplace for both borrowers and lenders.
Despite the relatively steady current mortgage market, mortgage rates remain highly challenging to predict. The Fed’s decision to leave rates unchanged at its July meeting only bolsters the likelihood that the Fed will raise rates at a future meeting in 2017. In fact, the Fed reaffirmed its outlook for another rate increase in 2017 and recent strong labor and economic reports, including a decline in the unemployment rate and robust jobs growth, reinforce the potential for a future rate hike. Additionally, a Fed official recently reiterated the Federal Reserve's intention to raise interest rates before year end despite continued low inflation. Prospective borrowers looking to buy a home or refinance their mortgage may be able to lock in a lower interest rate by acting sooner rather than later, before mortgage rates increase, potentially at an accelerated pace.
Because interest rates change daily, we continue to actively monitor the mortgage market for changes. Borrowers should check the FREEandCLEAR mortgage rate tables regularly to review customized, updated mortgage rates for lenders in their area. Our rate tables are free to use and require no personal information.
What You Should Know About Jumbo Mortgages
The Interest Rate May Be Higher.
Although not always the case, the interest rate for a jumbo mortgage is usually .250% to .625% higher than the interest rate for a conforming loan. Interest rates for jumbo mortgages vary based on loan amount, loan-to-value (LTV) ratio and other factors.
Lenders have more discretion in determining the interest rate and closing costs for jumbo mortgages so borrowers see more variation in interest rates for jumbo loans. Because rates and fees for jumbo mortgages can vary significantly, borrowers should shop lenders to find the mortgage with the most attractive terms. Additionally, because jumbo loans have larger loan amounts, even a small difference in interest rate can save you thousands of dollars in interest expense. FREEandCLEAR recommends that you compare three-to-four proposals before selecting a lender, regardless of mortgage size, but shopping your mortgage business is especially important for jumbo mortgages.
Borrower Qualification Guidelines Can Vary.
Lenders also have more flexibility in setting borrower qualification guidelines for jumbo mortgages. For example, different lenders may have different credit score, debt-to-income ratio and down payment requirements. In addition to shopping for the jumbo mortgage with the lowest rates and fees be sure to understand the lender’s borrower qualification guidelines and underwriting policies.
There are Different Types of Jumbo Loans.
Technically, any mortgage amount above the conforming loan limit set by the government ($424,100 for a single unit residence in the contiguous U.S. or $636,150 for a single unit residence in Alaska or Hawaii) is considered a jumbo mortgage but the government sets higher loan limits in higher cost areas. For example, the loan limit for a single unit residence in a high cost area in the contiguous U.S. can be up to $636,150 and up to $954,225 in Alaska or Hawaii. Loan amounts that fall in between $424,100 (or $636,150 in Alaska or Hawaii) and the conforming loan limits for higher cost areas are called conforming jumbo, super conforming or agency jumbo mortgages and may have slightly higher interest rates than conforming loans. Loan amounts above the conforming loan limit for a county are called non-conforming jumbo mortgages or jumbo mortgages for short. The important point to notes is the the interest rate and borrower qualification guidelines are typically different for jumbo mortgages.
Why Borrowers Compare Mortgage Rates on FREEandCLEAR
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More FREEandCLEAR Mortgage Resources
We provide a comprehensive overview of jumbo mortgages including borrower eligibility and loan-to-value (LTV) ratio requirement
Use our Conforming Mortgage Limit Calculator to determine the jumbo loan limit for your county. Mortgage amounts above the conforming loan limit are non-conforming jumbo loans
Jumbo mortgages can be more complicated than other mortgages so the FREEandCLEAR Mortgage Expert is standing by to answer your questions. So fire away and receive a helpful response within 24 hours
Use our Mortgage Selector to determine the type of mortgage that is right for you as well as how much mortgage and home you can afford