Back on Thursday, bonds rallied and as a consequence mortgage interest rates improved at several lenders. However, rates haven’t entirely recovered all the loss they have seen earlier this week. As we reported yesterday, Freddie Mac published its latest weekly mortgage survey, which showed that the average rate on the 30-year FRM edged up to 3.80% this week. This translates to an increase of 12 basis compared to the prior week’s data. The 15-year fixed mortgage averaged 3.02%. A week earlier this type of mortgage loan was hovering at 2.94%, according to the mortgage buyer’s survey.
Now, looking at today’s domestic economic reports, the U.S. job market added 223,000 jobs in April, the Labor Department said earlier this Friday. Also, the unemployment rate declined to 5.4% last month from the previoius 5.5%. Wages, on the other hand, remained flat, showing a 0.1% improvement, according to the latest data.
After several day of increases, mortgage interest rates swung in the opposite direction, which means, now it’s a good time to lock your rate, if you are looking for some cheap home financing opportunities. We have yet to see if interest rates are able to hold on to the current gains next week, but from a historical perspective, rates are stil hovering near all-time low levels. The lowest interest rate on record for the 30-year FRM is 3.31%, according to Freddie Mac’s PMMS survey. The current reading is 3.80%, as we mentioned above.
Another thing, that potential borrowers should take into account, is that the Fed is expected to raise rates later this year. A rate hike could happen as soon as June, although the consensus expectation is that the Fed will increase rates sometime in September. And once that happens, mortgage rates will rise accordingly.
Switching to current mortgage rates at some of the top U.S. lenders, Chase (NYSE:JPM) is offering the 30-year fixed home purchase loan for as low as 3.750%. The 15-year fixed home loan aternative is coming out at 3.000%, according to the updated loan information.
The lender’s home refinance loan portfolio includes the 30-year FRM, which can be locked in at a rate of 4000%. Others, who find the 15-year home refinance loan a more appealing option, can expect to pay 3.125% interest cost.
Moving on to another major lender, Wells Fargo (NYSE:WFC), the 30-year fixed conventional loan for home purchase starts at a rate of 4.000%. A shorter-term option, the 15-year FRM can be obtained for as low as 3.250%.
Under its refinance loan program, the California-headquartered bank advertises the 30-year fixed mortgage loan at a rate of 4.125%. Others, who prefer to take on the popular 15-year fixed refi mortgage, will see it being offered at a rate of 3.375%.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below. To calculate your monthly mortgage payment, feel free to use our featured mortgage calculator.