Wednesday, June 2, 2021
As the title suggests, there have been no fluctuations in the mortgage rates compared to yesterday. The rates are totally the same as they were yesterday. However, there have been minor insignificant changes in basis points as compared to last week. Following are the rates as of today:
- 30-year fixed mortgage: 3.100% for home purchase and 3.140% for refinance
- 15-year fixed mortgage: 2.380% for home purchase and 2.420% for refinance
- 5/1 ARM mortgage: 3.150% for home purchase and 3.010% for refinance
- 30-year fixed Jumbo mortgage: 3.120% for home purchase and 3.160% for refinance
As evident from above, there has been no change in the rates from yesterday. Therefore, it shows stagnancy in the mortgage market lenders are trying to keep the rates low to attract more home borrowers in an attempt to close more borrowers and amplify their earnings. The above data is based upon the national survey by Bankrate.
Several other institutions carry out the national surveys, but there is a difference of few basis points between their rates. For example, if we check the survey of the lending tree, the rate for 30-year is 2.84%, i.e., 2.6 basis points less than the bank rate. Therefore, the rates of national surveys differ because each of them takes a different sample of thrifts and banks to calculate the average rate.
What Is the Trendline of Different Mortgages?
30-year fixed mortgage
Starting off with a 30-year mortgage, there has been an increase of one basis point compared to last week. Moreover, it’s greater by four basis points than the last month. Thus, it looks like the rates are on an upward trend, as evident from the expert insights that rates will go up in the near future.
15-year fixed mortgage
Likewise, there is an increase of one basis point compared to last week, while no change compared to yesterday. It’s a minor change, and it’s still a plausible idea to close a 15-year mortgage because rates are not quite high.
5/1 ARM mortgage
Coincidentally, a similar change of one basis point increase is seen in this type of mortgage. It’s a great loan to consider for people who want to sell it after five years of the fixed period. Since rates will adjust after five years, the situation can be uncertain. Therefore, it’s better to lock into such a mortgage at a low rate and then sell it after five years to refinance at a lower rate.
30-year fixed jumbo mortgage
Surprisingly, there was an increase of three basis points in jumbo mortgages as compared to last week. Moreover, the rates are higher by five basis points compared to last month.
Endnote
As we can see from above, the rates are moving upward compared to last week. However, the main reason to account for the fact that there are minor changes in rates is high competition among lenders. Lenders are competing with each other by offering lower rates to close better deals with borrowers.
Therefore, it’s still a better opportunity for people to refinance their mortgages at a lower rate before rates hike up. However, according to experts, the rates will linger at around 3% for the current year and might rise until next year since investors anticipate recovery from COVID-19 by the end of the year.
Moreover, the rise in long-term treasury yields also suggests that rates will rise in the near future. Since it’s a great opportunity for purchasing mortgages, visit rate checker and get personalized free quotes according to your area.
