Lenders took back some discounts on 30-year mortgage rates while favoring adjustable rate mortgages with even lower rates this morning. Overall though, home loan terms remain mostly unchanged.
A NerdWallet survey of mortgage lenders early today shows the daily change in average mortgage rates:
Mortgage Rates: June 7, 2016
(Change from 6/6)
30-year fixed: 3.76% APR (+0.02)
15-year fixed: 3.09% APR (NC)
5/1 ARM: 3.36% APR (-0.04)
While industry consensus now holds that the Federal Reserve will stand pat on short-term interest rates on June 15, Federal Reserve Chair Janet Yellen hasn’t tipped her hand on the timing of a rate hike. In a speech before the World Affairs Council in Philadelphia yesterday, Yellen reiterated the need for higher short-term interest rates — especially in light of Friday’s disappointing employment report — but gave no hint of when such a move would be made.
“Although this recent labor market report was, on balance, concerning, let me emphasize that one should never attach too much significance to any single monthly report,” Yellen said. “That said, the monthly labor market report is an important economic indicator, and so we will need to watch labor market developments carefully.”
Lock or float your mortgage rate?
Regardless of where short-term interest rates may be headed, Doug Duncan, chief economist for Fannie Mae, believes long-term mortgage rates will see little movement through the end of the year.
“The June employment report was a weak report, even adjusted for the Verizon strike, and likely means the Fed will stand pat in June,” Duncan tells NerdWallet. “Rates fell upon the release and we see no change necessary in our forecast of 30-year fixed-rate mortgage rates ending the year at 3.7%. The risks are on the downside.”
Of course, any decision to lock a mortgage rate should be based on a borrower’s risk tolerance and short- and long-term goals.
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.