Current Mortgage Rates

Mortgage rates were flat this week as all eyes are focused on the Federal Reserve's upcoming September meeting which is expected to deliver at least a quarter point rate cut.  Over the past month, the ongoing trade conflict with China, slowing global economies, a volatile stock market and increasing concerns about a recession have pushed mortgage rates to a multiyear low.

These developments follow the Federal Reserve's decision to lower interest rates for the first time in over a decade at its July meeting.  The Fed highlighted emerging economic risks, lackluster business investment and low inflation in reducing the target range for the Federal Funds rate a quarter point to 2.000% - 2.250%.

While the Fed did not commit to a strategy of multiple rate decreases, significant equity market turbulence and an escalating trade war since the July meeting led Chairman Powell to offer assurances that the Fed would support the economy as market conditions shift.  Many mortgage industry analysts interpreted Powell's comments as a sign that the Fed intends to lower rates at its next meeting.

Last week's jobs report showed continued low unemployment but lower than expected job creation and wage growth.  When combined with the downward revision to second quarter GDP growth, the major economic indicators are offering little resistance to a potential interest rate cut.  Mortgage rates were unchanged in advance of the Fed meeting and continue to sit near a three year low.        

30 year fixed rate mortgage rates were steady at 3.500%, a three year low, while 15 year fixed rate mortgage rates were flat at 3.000%.  The rate on a 5/1 adjustable rate mortgage (ARM) remained at 3.250%, as shorter term financing remains attractive.  Jumbo mortgage rates stayed put at 3.625%, moderately higher than conforming loan rates.  Non-owner occupied mortgage rates held at 4.000%, which is an attractive financing option for investment property buyers.  FHA mortgage rates and VA mortgage rates were both stable at 3.000%, with both programs appealing to borrowers focused on low or no down payment programs, especially first-time home buyers.   

After nine rate increases over four years, the Fed's July decision to lower interest rates for the first time since 2008 marked a significant shift in policy.  The Fed also reiterated a more flexible strategy that enables it to loosen (or tighten) monetary policy as economic conditions evolve.

Although nothing is guaranteed when it comes to the Fed or mortgage rates, the market is anticipating at least one more quarter point rate decrease before the end of the year -- perhaps as soon as September -- which is welcome news for borrowers and a housing market that has been hampered by fluctuating rates and limited supply.

Because interest rates are impossible to predict, prospective borrowers looking to buy a home or refinance should take advantage of current low mortgage rates, as the market can change quickly.  Additionally, as lenders react differently to changing market conditions, we have seen a wider variation in mortgage rate pricing, which means borrowers benefit more by comparing multiple lenders.

Because mortgage rates change constantly, we continue to actively monitor the market for new developments.  Borrowers should check the FREEandCLEAR rate tables regularly to review personalized, updated mortgage rates for lenders in their area.  Our rate tables are free to use and require no personal information.