Mortgage Rates Tuesday, May 16: Small Moves, Mostly Lower

Mortgage Rates, Mortgages
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Interest rates for 30-year and 15-year fixed home loans slipped a notch, and 5/1 ARM rates ticked higher today, according to a NerdWallet survey of mortgage rates published by national lenders Tuesday morning.

While mortgage rates remain calm for now, economists seem to believe that the Federal Reserve’s plan to raise short-term interest rates a few more times this year is all but a done deal. In its latest report, Fannie Mae’s Economic and Strategic Research Group says it “continues to expect rate hikes in June and September.”

Fannie Mae chief economist Doug Duncan says the economy “grinds along” and that consumer spending should rebound in the second quarter. Though a tight supply of homes continues to be a challenge, Duncan says improving U.S. employment seems to be making a positive impact on millennial homeownership rates.

“Home sales performed well going into the spring season, thanks to solid labor market conditions and a recent retreat in mortgage rates,” the report added.


MORTGAGE RATES TODAY, TUESDAY, MAY 16:

(Change from 5/15)
30-year fixed: 4.16% APR (-0.01)
15-year fixed: 3.53% APR (-0.01)
5/1 ARM: 3.85% APR (+0.01)

» MORE: How much home can you afford?

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

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

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