Mortgage rates are standing pat for the most part, though adjustable-rate loans edged slightly higher today. A NerdWallet survey of mortgage lenders this morning revealed the following average rates on the most popular loan terms:
Mortgage Rates: June 1, 2016
(Change from 5/31)
30-year fixed: 3.82% APR (+0.01)
15-year fixed: 3.18% APR (-0.01)
5/1 ARM: 3.48% APR (+0.02)
Ted Rood, a senior loan officer in St. Louis, says a number of factors have influenced rates over the past few days. Bond demand has been boosted by a United Kingdom survey showing growing support for a European Union exit, just as U.S. consumer confidence came in below expectations.
Rood says institutional traders seeking “risk off” positions added to their bond holdings, and, as a result, interest rates improved a bit. He says Friday’s U.S. employment report will likely be the next trigger for bond movement.
Lock or float your mortgage rate?
“I’m advising borrowers with June closings to lock and take risk out of the equation,” Rood tells NerdWallet. “Folks closing in July have more time on their side; if they float and the jobs report is strong [hurting rates], they can wait several weeks to lock if necessary. Some of my July closings have chosen to lock, others want to float for now.”
Of course, the decision to lock a mortgage rate needs to be based on the borrowers’ risk tolerance and a clear understanding between the borrowers and their loan officer on their goals, Rood added.
NerdWallet daily mortgage rates are an average of the lowest published APR 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 a more accurate view of the costs a borrower might pay.