Thirty-year fixed mortgage rates moved a tick higher again today, 15-year fixed home loans are unchanged, but 5/1 ARM rates rose slightly, according to a NerdWallet survey of mortgage rates published by national lenders Tuesday morning.
Lenders continue to reprice their loan terms higher following Friday’s better-than-expected jobs report.
Survey: Consumers expect mortgage rates to fall even lower
New research from Fannie Mae indicates a growing positive outlook for the U.S. housing industry among consumers. The July edition of the National Housing Survey saw a 5% increase in the number of respondents who expect mortgage interest rates to go down over the next 12 months.
In addition, the share of consumers who said they would buy if they were going to move increased to 67%, while the share of consumers who said they would rent fell to 26%, equaling an all-time survey low. Of particular note, a possible shift in attitude among millennials for buying rather than renting.
“One interesting potential bright note for housing in the July survey is that younger households may finally be shifting toward buying rather than renting in greater numbers,” Doug Duncan, chief economist for Fannie Mae, said in a release. “Whether the shift in sentiment in July toward buying rather than renting on their next move holds up or is a temporary reaction to their view that rents are on the rise and mortgage rates will be lower, we will see. However, we are getting set to release some additional research in early August showing evidence of a broader move by older millennials in the direction of ownership.”
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:
Purchase Mortgage Rates: Aug. 9, 2016
(Change from 8/8)
30-year fixed: 3.64% APR (+0.01)
15-year fixed: 3.03% APR (NC)
5/1 ARM: 3.50% APR (+0.02)
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.