Mortgage Rates Thursday, May 18: Lowest Rates of the Year

Mortgage Rates, Mortgages
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Interest rates for 30-year and 15-year fixed home loans, as well as 5/1 ARM rates, are all lower again today, according to a NerdWallet survey of current mortgage rates published by national lenders Thursday morning.

Fixed-rate mortgages are showing their lowest average rates since Nov. 14, 2016, according to the NerdWallet Mortgage Rate Index.

Washington political turmoil roiled Wall Street yesterday as investors sold off stocks and took cover in bonds. As bond prices rose, yields — and mortgage rates — fell. The downward momentum continued this morning as lenders discounted their rates even further.

Ten-year Treasury yields, a proxy for mortgage rates, began trading today at one-month lows.

Nervous investors and political uncertainty are causing some mortgage market observers to consider a new interest rate wrinkle: the possibility that the Federal Reserve may delay an expected short-term rate hike. Fed Fund futures, a gauge of trader sentiment, now show a lower probability that the Fed will raise rates in June. While a solid majority, nearly two-thirds (65%) of futures traders, believe the Fed will move rates a quarter point higher next month, that’s down from 83% just a week ago.

So for now, the Fed’s moving rates higher next month is considered likely, but far from a sure thing. And with the bond market in favor for the time being, late-spring home buyers are getting a break: even lower mortgage rates.


MORTGAGE RATES TODAY, THURSDAY, MAY 18:

(Change from 5/17)
30-year fixed: 4.07% APR (-0.05)
15-year fixed: 3.44% APR (-0.07)
5/1 ARM: 3.81% APR (-0.01)

» MORE: How much home can you afford?

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.

More from NerdWallet
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Refinance calculator

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick.