Mortgage rates moved higher today, after several days without direction. Lenders seem to be pricing in a bit of risk as yields on 10-year Treasurys, a benchmark for mortgage pricing, rose. Global stock markets and commodity prices — particularly oil — were lower yesterday, and traders sought cover in the bond market.
Mortgage Rates: May 24, 2016
30-year fixed: 3.80%
15-year fixed: 3.14%
5/1 ARM: 3.44%
The upward move in mortgage rates comes after several days with little direction. Last week, rates stepped significantly higher, the result of a nervous bond market following the release of the minutes from the latest Federal Reserve Open Market Committee meeting. That hand-wringing over a possible short-term interest rate move by the Fed next month pushed long-term mortgage rates up to six-week highs.
Since then, the market has been holding its breath with little change to the three most-watched mortgage terms. But today, some lenders surveyed are edging ever closer to the 4% mark for 30-year fixed loans.
If you locked in your mortgage rate prior to last Wednesday, you’re all good. If not, you’ll want to keep a close eye on rates until you decide to lock or continue to float your mortgage rate.
Rates are an average of mortgage interest rates as published by a sampling of major national lenders.