Mortgage Rates Monday, June 5: Shorter Terms Rise

Mortgage rates for 30-year fixed loans were unchanged today, while 15-year fixed loans and 5/1 ARMs edged higher, according to a NerdWallet survey of mortgage rates published by national lenders Monday morning.

Does last Friday’s disappointing employment report derail expectations that the Federal Reserve will raise short-term interest rates next week? Institutional investors are still betting on the rate hike, according to Fed futures, a gauge of trader sentiment.

In a statement issued Friday, Doug Duncan, chief economist at Fannie Mae, said he believed the Fed will make this month’s short-term interest rate move according to plan. However, he added that because the “labor market has lost some steam … uncertainty looms” for continued hikes over the next year.

Scott Anderson, chief economist for Bank of the West, said Friday that in spite of the “less-than-ideal payroll report,” the Fed will proceed with this month’s interest rate hike. But he also believes the Fed will be “on alert for more signs of economic disappointment ahead.”

While Fed rate hikes more directly impact adjustable-rate mortgages and home equity lines of credit, a rising short-term rate environment would eventually compel long-term rates, such as those on 30-year fixed mortgages, to rise as well.

The Fed announces its next rate decision on June 14.

MORTGAGE RATES TODAY, MONDAY, JUNE 5:

(Change from 6/2)
30-year fixed: 4.08% APR (NC)
15-year fixed: 3.44% APR (+0.01)
5/1 ARM: 3.83% APR (+0.02)

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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.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

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The article Mortgage Rates Monday, June 5: Shorter Terms Rise originally appeared on NerdWallet.

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