Consumers taking advantage of historically low mortgage rates continue to heat up the housing market.
According to data from the Mortgage Bankers Association’s (MBA) Builder Application Survey released Tuesday, mortgage applications for new homes increased 10.9% over year-ago levels for the month of May, and by 26% over April 2020 levels.
“The solid increase in new home purchase applications in May is another indication of a recovery in the housing market,” according to Joel Kan, associate vice president of economic and industry forecasting for the MBA, adding that “homebuyer traffic is rising, and homebuilders are continuing to ramp up production following the COVID-19 pandemic related restrictions.”
Aiding the improvement in housing supply is the increase in existing homes going on the market. According to Redfin’s weekly report, issued Friday, new listings on Redfin’s website up 13% during the first week in June.
With Wednesday’s announcement by the Federal Reserve that it intends to keep the federal fund target rate in the 0% to 0.25% range until the economy is well on its way to full recovery and maximum employment, 15 of the 17 Federal Reserve officials predicted these rates will hold there until 2022, according to a report by the Wall Street Journal.
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Average Mortgage Rates Today
The average interest rate for a 30-year fixed-rate mortgage ticked up to 3.21% with 0.9 points paid for the week ending June 11, according to Freddie Mac. That is just 0.6 percentage points higher than the all-time low of 3.15% set May 28.
According to Freddie Mac the average rate for a 15-year fixed-rate mortgage was 2.62% with 0.8 points paid, unchanged from last week, while the average rate on a 5-year adjustable-rate mortgage also remained unchanged at 3.10% with 0.4 points paid.
Average Refinance Rates Today
A year ago the average rate was 3.82%. A homeowner with a $250,000 mortgage balance paying 3.82% on a 30-year loan could cut their monthly payment from $1,168 to $1,082 by financing at today’s lower rates. (It is important to note that refinancing involves closing fees and will reset the clock on your mortgage, meaning you will have to make payments longer.)
Today’s Mortgage Rates
Of course, mortgage rates vary widely by location and personal factors like the type of home you plan to buy, your down payment, and your credit score. Here are today’s advertised mortgage rates at some of the mortgage industry’s largest lenders.
Quicken, a non-bank lender based in Detroit, is the nation’s leading mortgage lender by dollar origination volume.
Mortgage rates advertised for June 16:
30-year fixed: 3.511%
(Quicken doesn’t advertise a five-year adjustable rate. Rates are APRs.)