Lenders are pricing loans in response to Friday’s weak jobs report, and mortgage rates are offering borrowers a break. There has been little movement in 30-year mortgage pricing since interest rates dropped Friday morning, but 15-year fixed and adjustable rate mortgages are still receiving additional discounts.
A NerdWallet survey of mortgage lenders early today shows the daily change in average mortgage rates:
Mortgage Rates: June 6, 2016
(Change from 6/3)
30-year fixed: 3.74% APR (-0.01)
15-year fixed: 3.09% APR (-0.03)
5/1 ARM: 3.40% APR (-0.03)
Friday’s disappointing employment report is causing analysts to rethink the likelihood of the Federal Reserve hiking short-term interest rates June 15.
“This greatly diminishes the likelihood of the Federal Reserve raising rates in June, which would be a net positive for housing demand this spring,” Realtor.com chief economist Jonathan Smoke said. “But diminishing job growth also raises concern about longer-term demand for housing later this year and into 2017.”
Lock or float your mortgage rate?
Smoke also believes rates will remain favorable over the coming weeks.
“This weak job report likely means that mortgage rates will remain about where they are through the rest of the spring and early summer home-buying peak and the short-term continuation of strong demand for new and existing homes,” Smoke said.
Of course, any decision to lock a mortgage rate should be based on borrowers’ risk tolerance and their short- and long-term goals.
NerdWallet daily mortgage rates are an average of the lowest published APR for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing a more accurate view of the costs a borrower might pay.