Mortgage And Refinance Rates, June 1 | Rates rising today
Mortgage And Refinance Rates, June 1 | Rates rising today
Abstract
We've one consolation: There's no more reason to think that yesterday's sharp rise in mortgage rates signaled a long-term change than that last week's falls did. Caveats about markets and rates Before the pandemic and the Federal Reserve's interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. Mortgage rates are determined mainly by ever-changing yields on a type of bond called a mortgage-backed security. The question now is: Have they anticipated the Fed's moves adequately? Or will mortgage rates have to rise when those events begin to unfurl? Nobody can be sure. Freddie's May 26 report puts that same weekly average for 30-year, fixed-rate mortgages at 5.1%, down from the previous week's 5.25%. Note that Freddie expects you to buy discount points on closing that earn you a lower rate. Expert mortgage rate forecasts Looking further ahead, Fannie Mae, Freddie Mac and the Mortgage Bankers Association each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates. As federal regulator the Consumer Financial Protection Bureau says: "Shopping around for your mortgage has the potential to lead to real savings. It may not sound like much, but saving even a quarter of a point in interest on your mortgage saves you thousands of dollars over the life of your loan." Mortgage rate methodology The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day.