The benchmark 30-year fixed-rate mortgage stayed flat at 3.56 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.20 percent.
Four weeks ago, the rate was 3.51 percent. The 30-year fixed-rate average for this week is 0.50 percentage points below the 52-week high of 4.06 percent, and is 0.05 percentage points above the 52-week low of 3.51 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.29 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 3.82 percent. This week’s rate is 0.26 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage was flat at 2.88 percent.
- The 5/1 adjustable-rate mortgage fell to 3.43 percent from 3.48 percent.
- The 30-year fixed-rate jumbo mortgage fell to 3.88 percent from 3.90 percent.
At the current 30-year fixed rate, you’ll pay $452.40 each month for every $100,000 you borrow, unchanged from last week.
At the current 15-year fixed rate, you’ll pay $684.82 each month for every $100,000 you borrow, unchanged from last week.
At the current 5/1 ARM rate, you’ll pay $445.15 each month for every $100,000 you borrow, down from $447.93 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted May 27, 2020 and the effect on monthly payments for a $165,000 loan:
|Breakdown||30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||3.56%||2.88%||3.43%|
|Change from last week:||N/C||N/C||-0.05|
|Change from last week:||N/C||N/C||-$4.59|
Where mortgage rates are headed
In the week ahead (May 28-June 3), rates are likely to remain stuck in the 3.55 percent range. That’s the consensus of 70 percent of mortgage experts polled by Bankrate. The other 30 percent expect rates to rise. No one forecasts rates to fall.
“Optimism about a vaccine is still rising, so rates will rise, too,” says Joel Naroff of Naroff Economics, conveying the minority view.
Gordon Miller of Miller Lending Group foresees little movement: “I don’t see any reason for higher rates and nothing compelling for lower rates yet either.”
For homebuyers and refinancers, low rates prevail
Rate watchers want to know if this is the time to jump on low mortgage rates or if they should wait a little longer in hopes of getting even deeper discounts on loans. It’s a good bet rates will at least stay at these low levels for many weeks and probably months to come.
Keep in mind that some lenders have raised their posted rates to discourage inquiries because they are so busy. It’s important to call the lender to find out if they can do better than a rate you see online; oftentimes they can.
Jumbo borrowers will find they must cast a wide net to find a lender because many have exited this market to cut back on risk. In addition, refinancing with cash out is shrinking because lenders are worried people will lose their jobs and be unable to pay, while home values could possibly fall.
There is also the possibility that the spread between the Treasury yields and mortgage rates will tighten, which will help drive rates lower. But with the federal Reserve’s move to intervene in the mortgage-backed securities market, anyone who wants a mortgage this spring should be able to snag a super-low rate.