Versus the volatility from last week, the week of May 6 is so far showing a far more gradual movement of mortgage rate averages, which is probably giving everyone involved a bit of a mental break from the stress involved. The rates have clearly recovered from the lows of the 3.3 percent range to now a safe averaging near 3.5 percent for actual executions with a potential to move higher throughout the week. Even Zillow is being quoted at pegging rates at 3.4 percent. The slight tick upward is in line with what everyone was originally expecting as the weather got warmer and the home-buying season began anew for the summer.
However, the 30-year mortgage rate average is still well below its 2013 high of 3.75 percent, so for those worried about the media chattering on rate increase, 3.5 percent for 30 years is still a darn good deal historically. In short, rates still have a long way to go before getting anywhere near 4.5 or 5 percent, which is what people were buying homes with back in 2002.
In terms of near-future movement, most market watchers are expecting a bit of quiet for the next two weeks. There’s no major reports coming out, and the stock market continues to generally be recovering. As a result, mortgage-backed securities are wandering a bit listless, which in turn is starting to cause mortgage rates to slowly float upward a bit. After last Friday’s jumpiness thanks to the better-than-expected job report, securities are now in limbo until a new factor emerges. Lenders keep commenting, however, that the days of lower rates are now done for (of course, that’s what they said in January as well and then it dropped to 3.375 percent).
For those watching, as noted above, the 30-year mortgage zeroed in on the 3.5 percent mark for Wednesday, May 8. The 15-year counterpart is in a floating range of 2.625 to 3 percent. Those with VA or FHA eligibility still enjoy access to a 3.25 percent rate, and the 5-year adjustable rate mortgage average is between 2.625 percent and 3.25 percent.