30 year mortgage rates are down again this week averaging 3.84 percent, down from the prior week's average of 3.90 percent. Mortgage rates will stay near current levels for the next several months, despite the fact the Federal Reserve might increase the federal funds rate.
The Federal Reserve meets this week and will probably increase the fed funds rate 0.25 percent. Short term interest rates and bond yields will move higher if the Fed increased the rate but long term rates probably won't. Mortgage rates are tied to long term bond yields, so mortgage rates will also remain near current levels.
Average 30 year rates are at 3.84 percent but there are many lenders quoting 30 year rates below the average. Currently on our rate table for California, we have one lender quoting 30 year refinance rates at 3.50 percent with 2 mortgage points. The lowest refinance rate without points is at 3.75 percent.