Thirty-year and 15-year fixed mortgage rates, as well as 5/1 ARM rates, are all sharply higher Monday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.
Rates are continuing their rapid ascent that began late last week; 30-year fixed mortgages are at their highest point since June 24.
Low mortgage rates benefit real estate investors
Last week’s report on U.S. employment for August was a mixed bag of news for the economy, but Steve Hovland, director of research for HomeUnion, a real estate investment management firm, said that it’s continuing good news for buyers.
“The U.S. economy added only 151,000 jobs during August, giving the timid Fed justification to delay an interest rate hike until December,” Hovland said in an analysis. “Low interest rates benefit borrowers, including single-family rental investors. At today’s rates, investors will be able to leverage investment assets at historically low rates. The mortgages on those properties, meanwhile, can be covered with elevated rents.”
Hovland said, barring an unexpected move from the Fed, investors are expected to expand their real estate holdings through the end of the year.
The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:
Mortgage Rates: Sept. 12, 2016
(Change from 9/9)
30-year fixed: 3.70% APR (+0.05)
15-year fixed: 3.12% APR (+0.05)
5/1 ARM: 3.57% APR (+0.05)
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published APR with the lowest points 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 the most accurate view of the costs a borrower might pay.