Mortgage rates for 30- and 15-year fixed loans ticked higher and 5/1 ARMs were unchanged, according to a NerdWallet survey of mortgage interest rates published by national lenders Thursday morning.
For a clue to where mortgage rates may be headed: Keep an eye on jobs. In a report issued this morning, ADP and Moody’s Analytics reported booming employment in May.
“Job growth is rip-roaring,” Mark Zandi, chief economist at Moody’s Analytics, said in a release. “The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses’ number one challenge will be a shortage of labor.”
If similar results are seen in tomorrow’s employment report from the Bureau of Labor Statistics, it may be enough to cause mortgage rates to sneak higher. Good economic news, combined with the increasing likelihood of a short-term interest rate hike by the Federal Reserve on June 14, will likely put upward pressure on the recent tame rate trend.
MORTGAGE RATES TODAY, THURSDAY, JUNE 1:
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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.