Thirty-year home loans are down nearly a quarter point (0.25%) from just a month ago and stubbornly sticking to more than three-year lows. But the Brexit effect — falling mortgage rates after Britain’s announcement that it was leaving the European Union — seems to be losing steam.
Stock markets recovered some of their losses yesterday and the flight to bond safety eased. Lenders have begun simply fine-tuning their rates, rather than racing to the bottom.
Still, Jonathan Smoke, Realtor.com chief economist, says potential homebuyers have gained buying power from the recent downward move in rates.
“The immediate impact of Brexit on the mortgage market is the major decline in rates which produces lower monthly payments,” Smoke said in a recent blog post. “This means that a well-qualified buyer can afford an 8% higher price since the beginning of the year. The increase in buying power is more than offsetting the higher prices.”
The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees — the most accurate way for consumers to compare rates. Here are Wednesday’s average rates for the most popular loan terms:
Purchase Mortgage Rates: June 29, 2016
(Change from 6/28)
30-year fixed: 3.63% APR (NC)
15-year fixed: 3.00% APR (-0.02)
5/1 ARM: 3.32% APR (NC)
Refinance Mortgage Rates: June 29, 2016
(Change from 6/28)
30-year fixed: 3.71% APR (NC)
15-year fixed: 3.02% APR (-0.02)
5/1 ARM: 3.34% APR (NC)
Homeowners looking to lower their mortgage rate can shop refinance lenders here.
Wells Fargo, Chase and BOA mortgage rates
Three major components of the NerdWallet Mortgage Rate Index are leading lenders Wells Fargo, Chase and Bank of America. Their current purchase mortgage rates are:
Bank Mortgage Rates 6/29
| 30-year fixed | 15-year fixed | 5/1 ARM | |
|---|---|---|---|
| Wells Fargo | 3.68% APR | 3.05% APR | 3.38% APR |
| Chase | 3.44% APR | 2.80% APR | 3.32% APR |
| Bank of America | 3.65% APR | N/A | 3.29% APR |
NerdWallet daily mortgage rates are an average of the lowest published APR for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing a more accurate view of the costs a borrower might pay.
Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick
from NerdWallet
https://www.nerdwallet.com/blog/mortgages/mortgage-rates-stick-lows-brexit-effect-fades/
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