Mortgage Rates 6-20-2013

Primary mortgage rates shot upwards today, pushing the conventional 30-year fixed best execution rate to 4.25% (a level that hasn't been seen since the fourth quarter of 2011). The sudden jump in mortgage rates is being attributed to important FOMC events taking place today. Retrospectively, rates just two months ago were near historic all-time lows, with 30-year fixed rates hovering just above 3.0 percent. Since this time, rates have risen at the fastest pace in 10 years.

30-year fixed-rate mortgage (FRM) interest rates climbed 0.12%, averaging 4.14% and setting a new record for the 52-week high.

The 15 year FRM rates also increased by 0.12% to 3.36%. This change sets the 15-year FRM rate at a new 52-week high.

FHA 30 year fixed mortgage rates also grew significantly, increasing 0.14% to 3.83% and establishing a new 52-week high.

Nonconforming conventional loans also posted an increase, rising 0.05% to 4.25% and nearing the 52-week high of 4.30%.

Adjustable-rate mortgage (ARM) Loans followed today's trend and increased, but the best-execution rate for 5/1 ARM only rose by 0.02%. The 5/1 year ARM is at 2.95%, not far above the 52-week low of 2.89%.

Advice for borrowers:  Are you hoping to get a home purchase or refinance loan this summer? Start by carefully watching the secondary mortgage market to decide when to lock. Mortgage market experts have predicted that mortgage rates will continue to increase throughout the later half of 2013, a trend that has recently been reflected by upward trends in mortgage rates. With the market showing signs of increasing volatility, be sure to establish your own minimum and maximum limits to lock in on, in order to be sure you receive a rate that matches your personal financial goals.

Gretchen Wegrich

Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.