After all the dramatic activity from the previous week and the symbolic breaking of the 4 percent mark on 30-year mortgage rate averages, it doesn’t surprise anyone that the market decided to take a bit of a breather and recollect itself the week of June 4. The high volatility has triggered a whole new wave of questions, calls, queries and refinancing applications from panicked consumers trying not to miss the train now that rates have actually really moved upward.
As far as the lenders are concerned, the 4 percent mark is now well-entrenched, being essentially the best package most borrowers are going to see in June on a 30-year fixed loan. That said, there are ways to still get a rate in the high 3 percent range, but it will definitely involve putting money down on points as well as a sizeable down-payment on the home purchase.
The above said, intraday movement has still be erratic, causing market watchers to twitch with each up and down ping in the numbers. The volatility has everyone on edge, and those on the mortgage-backed security side want to see their own returns go up as a result of the movement. That said, Friday brings the release of yet another Federal jobs report, which has been lackluster recently and making people think the nation’s economic recovery is losing steam.
In the meantime, home prices aren’t waiting for everyone. All the major markets are seeing surging in price values going up as demand is hot and inventories are significantly low. From the buyer’s perspective, there is so much happening so quick, the best advice to follow is to lock a rate while it seems favorable. No one should have any aspirations of a float-down. The goal now is to prevent paying more money where possible.
For recapping, the figures for June 5 have the 30-year fixed mortgage average slightly up at 4.01 percent. The 15-year counterpart is on the high end of the range at 3.15 percent. The attractive FHA/Veteran’s Assistance rate average is currently just above 3.5 percent but ranging between 3.25 and 3.75 percent, and the 5-year adjustable rate mortgage average is also up at 2.9 percent with a range as high as 3.25 percent.