Mortgage rates for 30- and 15-year fixed loans slipped lower, while 5/1 ARMs were unchanged, according to a NerdWallet survey of current mortgage rates published by national lenders Friday morning.
Many economists were expecting the best, but the U.S. employment report issued this morning generated more questions than answers. Just 138,000 jobs were added to the economy in May; forecasts were looking for a much bigger number — near 185,000.
Still, with unemployment dropping to 4.3%, its lowest level since 2001, observers are talking about the U.S. reaching “full employment.”
“Although job gains in May were on the soft side, the annual figure has been fairly consistent at over 2 million net new job creations,” Lawrence Yun, chief economist of the National Association of Realtors, said in a statement. “This implies that housing demand, which is more determined by long-term consistent prospects, still remains strong.”
Globally, equity markets are setting record highs, and the domestic stock market has been no exception. The S&P 500 is up 9.5% in 2017, through June 1. The bond market is also feeling the love. Ten-year Treasury yields, a traditional indicator of mortgage rates, were lower this morning, prior to the U.S. employment report. Lower Treasury yields tend to mean lower mortgage rates.
Bond yields — and mortgage rates — traditionally sink amid negative economic news. Whether this morning’s mixed-message jobs report will be enough of a catalyst to move mortgage interest rates even lower remains to be seen.
MORTGAGE RATES TODAY, FRIDAY, JUNE 2:
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Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
A previous version of this article misstated the 30-year fixed rate as 4.08%. This article has been corrected.