Mortgage Rates Rise Slightly as Summer Begins
The home buying season is heating up alongside summer temperatures, and U.S. mortgage rates are following suit. As June began, average rates rose slightly for the third week in a row. The 30-year fixed rate is now 3.66 percent, up incrementally from last week’s rate of 3.64 percent. Despite the upward trend, the market still remains far below June 2015 rates, which averaged 3.87 percent.
The 15-year fixed rate is trending upward as well, hitting the 2.92 percent mark on June 1. This represents a slight increase from May rates, which averaged 2.89 percent. 5/1 Adjustable Rate Mortgages (ARMs) are holding steady at 2.84 percent.
Experts agree that it remains a buyer’s market, though the health of the U.S. economy is improving, which typically forecasts a rise in mortgage rates. The federal government’s Monthly Jobs Report for May was expected to show improvement with an estimated 160k jobs added, but the report showed just 38k new jobs in May. However, job gains have averaged far above normal over the past three months, and are likely to continue as the year goes on.
If you’re mortgage shopping, now may be the time to choose a lender and lock-in a rate. Consumers who aren’t locked before the next rate hike will likely not see the current lower-than-average rates honored.
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