Mortgage Rates Today, Wednesday, July 27: Close Watch on the Fed

Managing Your Mortgage, Mortgages
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Mortgage Rates Today, Wednesday, July 27: Close Watch on the Fed

Thirty-year and 15-year fixed mortgage rates are lower Wednesday while 5/1 ARM rates moved a notch higher, according to a survey of national lenders by NerdWallet.

Refinance rates are lower on 30-year loans, higher on 15-year mortgages and unchanged on 5/1 ARMs.

Mortgage rates firming

“Financial markets have quieted greatly over the last few weeks, and U.S. economic data has been pretty favorable, so interest rates have firmed a little,” Keith Gumbinger, vice president of HSH.com, said in a news release. “Despite the uptick, 30-year fixed-rate mortgages remain about a half percentage point below 2016 highs and are presenting a tremendous opportunity for homeowners and homebuyers.”

Close watch on the Fed

The Federal Reserve will announce its decision regarding short-term interest rates this afternoon. Most experts believe the Fed will delay raising rates until the end of the year at the earliest. A surprise hike by the Fed would spark volatility in the bond market.

“The Fed will be cautious about tipping its hand and will likely express a desire to continue observation of incoming data to assess any economic repercussions of the vote,” Gumbinger adds. “With that said, the statement that closes the meeting may provide a sense of whether a September rate hike is still ‘in play,’ or whether it will come at a later time. For now, mortgage rates are wandering around with a slightly upward bias, so we might see a continued drift higher in the days ahead.”

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: July 27, 2016

(Change from 7/26)

30-year fixed: 3.66% APR (-0.01)

15-year fixed: 3.07% APR (-0.01)

5/1 ARM: 3.44% APR (+0.01)

 

Refinance Mortgage Rates: July 27, 2016

(Change from 7/26)

30-year fixed: 3.72% APR (-0.01)

15-year fixed: 3.11% APR (+0.02)

5/1 ARM: 3.45% APR (NC)

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

Wells Fargo, Chase and BOA mortgage rates

Three major components of the NerdWallet Mortgage Rate Index are leading lenders Wells Fargo, Chase and Bank of America. Their current purchase mortgage rates are:

Bank mortgage rates 7/27

 30-year fixed15-year fixed5/1 ARM
Wells Fargo3.68% APR3.09% APR3.51% APR
Chase3.48% APR2.91% APR3.44% APR
Bank of America3.69% APR2.98% APR3.39% APR

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.

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