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Mortgage Rates Thursday, March 9: Setting 2017 Highs; Millennials Make a Move

March 9, 2017
Mortgage Rates, Mortgages
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Thirty-year fixed, 15-year fixed and 5/1 ARM rates all moved higher again today, according to a NerdWallet survey of current mortgage rates published by national lenders on Thursday morning.

The bond market has been reacting to favorable economic news, with yields moving higher. And two major reports are looming that could also serve to push rates higher: Friday’s U.S. jobs report and next week’s short-term interest rate decision by the Federal Reserve.

Each loan product in our survey has set 2017 highs, according to the NerdWallet Mortgage Rate Index.

Mortgage Rates Today, Thursday, March 9:

(Change from 3/8)
30-year fixed: 4.50% APR (+0.01)
15-year fixed: 3.91% APR (+0.04)
5/1 ARM: 3.94% APR (+0.04)

Millennials are moving — out of the city

Millennials may be a hard generation to generalize, but it’s not for a lack of trying. For years, demographic experts have told us that these young adults preferred urban residences with walkable neighborhoods and plenty of amenities — things like mass transit, bars and cozy coffeehouses.

If the experts are to be believed, that might be changing. According to a new study by the National Association of Realtors, more millennials are bundling up the kids, moving to the suburbs and buying into the American Dream.

» MORE: How much home can you afford?

The report says that only 15% of millennial home buyers who bought a home between July 2015 and June 2016 nested in an urban area. That’s down from 21% two years ago. Two-thirds of these new young-adult homeowners were married, and nearly half (49%) had at least one child.

“Millennial buyers, at 85%, were the most likely generation to view their home purchase as a good financial investment,” Lawrence Yun, NAR chief economist, said in a news release. “These strong feelings bode well for even greater demand in the future as more millennials settle down and begin raising families.”

Meanwhile, the older generational cohort, Gen X, may be finally making room for younger buyers.

“Gen X sellers’ median tenure in their previous home was 10 years, which puts many of them selling a property they bought right around the time home values were on the precipice of declining,” said Yun. “Fortunately, the much stronger job market and 41% cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home.”

Yun expects more Gen X homeowners will sell this year, which may help relieve the lack of housing inventory in many areas of the nation.

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.

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Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.