Thirty-year fixed mortgage rates, 15-year home loans and 5/1 ARM rates were all solidly lower Wednesday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.
A measure of the nation’s service economy, the ISM nonmanufacturing index released Tuesday, was surprisingly weak — motivating nervous investors to jump back into the bond market. The demand pushed bond prices higher and yields lower, moving mortgage rates down as well.
Second quarter purchase home loans surge; refinancing lags
Low mortgage rates are continuing to fuel high home loan demand. Mortgage origination volume for the second quarter of this year rose to a three-year high, according to Black Knight Financial Services.
“In total, we saw $518 billion in first-lien mortgage originations in Q2, driven by a combination of continued purchase origination growth and refinance activity spurred by low interest rates,” Ben Graboske, Black Knight executive vice president, said in a news release. “At $297 billion, Q2 purchase originations marked the highest level — in terms of both volume and dollar amount — seen since 2007.”
Refinance lending volume remains below 2015 levels for the year-to-date, but has risen for three consecutive quarters.
Black Knight said two-thirds of Q2 home purchase loans were issued to borrowers with credit scores of 740+, however, the largest growth in loans has been in borrowers with “moderate” credit scores of 700 to 739.
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. 7, 2016
(Change from 9/6)
30-year fixed: 3.58% APR (-0.06)
15-year fixed: 3.07% APR (-0.02)
5/1 ARM: 3.50% APR (-0.03)
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.