Mortgage and Refinancing Rates Today, June 1 | Rates are going up



Today’s mortgage and refinancing rates

Average mortgage rates rose slightly last Friday. But they start this week slightly lower than last week.

Unfortunately, things are not so promising this morning. As well as mortgage rates may rise todayalthough probably not too harshly.

Find and lock in a low rate (June 3, 2021)

Current mortgage and refinancing rates

Program Mortgage rate Annual interest rate * Change
Regular 30-year fixed 2.945% 2.945% Without changes
Regular 15 year fixed 2,235% 2,235% Without changes
Regular 20 year fixed 2.775% 2.775% Without changes
Regular 10 year fixed 1.961% 2.001% Without changes
30 year fixed FHA 2,785% 3.442% Without changes
15 year fixed FHA 2,479% 3.08% + 0.1%
5 years ARM FHA 2.5% 3.194% + 0.01%
30-year fixed VA 2.375% 2,547% Without changes
15 year fixed VA 2.25% 2.571% Without changes
5 years of ARM VA 2.5% 2.372% + 0.01%
Rates are provided by our partner network and may not reflect the market. Your rating may be different. Click here for a personalized quote… See our rate suggestions here

Find and lock in a low rate (June 3, 2021)

COVID-19 Mortgage News: Mortgage lenders are changing rates and rules due to COVID-19. For the latest information on how the coronavirus can affect your home loan, Click here

Should you fix your mortgage rate today?

I wouldn’t lock in a day when mortgage rates are likely to drop. And I paused before doing it on one when they were steady.

But it does seem to me (and to most economists and other observers of mortgage rates) that at some point they will start to climb higher. And there is a chance that when that happens, the growth will be dramatic.

So my personal, general recommendations for blocking speed should remain:

  • LOCK if closing 7 days
  • LOCK if closing fifteen days
  • LOCK if closing thirty days
  • LOCK if closing 45 days
  • LOCK if closing 60 days

However, I do not pretend to be perfect foresight. And your personal analysis may turn out to be as good as mine – or even better. So you can be guided by your instincts and personal risk tolerance.

Market Data Affecting Today’s Mortgage Rates

Here’s a snapshot of the game state this morning at about 9:50 am ET. The data, compared to about the same time last Friday, were as follows:

  • IN profitability of 10 year Treasurys pushed to 1.64% from 1.60%. (Bad for mortgage rates.) More than in any other market, mortgage rates tend to follow these specific Treasury bond yields, although this has become less lately.
  • Major stock indices were higher when opening. (Bad for mortgage rates.) When investors buy stocks, they often sell bonds, which lowers their value and increases yields and mortgage rates. The opposite can happen when the indices are below
  • Oil prices rose to $ 68.85 from $ 67.16 a barrel. (Bad for mortgage rates *.) Energy prices play a big role in creating inflation, and also indicate future economic activity.
  • Gold prices rose to $ 1910 from $ 1902 an ounce. (Neutral for mortgage rates*.) In general, it is better for betting when gold is rising and worse when gold is falling. Gold tends to rise when investors are worried about the economy. And worried investors tend to cut rates
  • CNN’s Business Fear and Greed Index – increased to 46 from 43 out of 100. (Bad for mortgage rates.) “Greedy” investors lower bond prices (and raise interest rates) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. Hence, lower values ​​are better than higher ones.

* Change in gold prices of less than $ 20 or 40 cents for oil is a 1% share. Thus, we consider significant differences to be only good or bad for mortgage rates.

Caveats regarding markets and rates

Before the pandemic and the Federal Reserve’s intervention in the mortgage market, you could look at the numbers above and make a pretty good guess about what would happen to mortgage rates that day. But this is no longer the case. We still call every day. And they are usually right. But our accuracy record won’t reach its previous high level until things settle down.

Therefore, use the markets only as a rough guide. Because they must be exceptionally strong or weak in order to rely on them. But with this caveat, for now Mortgage rates are likely to rise slightly today. However, keep in mind that intraday swings (when the rates change direction during the day) are commonplace right now.

Find and lock in a low rate (June 3, 2021)

Important Notes About Today’s Mortgage Rates

Here’s what you need to know:

  1. Typically, mortgage rates rise when the economy is doing well and fall when it is in trouble. But there are exceptions. To read ‘How mortgage rates are determined and why you should care
  2. Only “top tier” borrowers (with stellar credit ratings, large down payments, and very healthy finances) get the ultra-low mortgage rates you’ll see in advertisements.
  3. Lenders vary. Yours may or may not follow the crowd when it comes to daily rate moves – although they all tend to follow a broader trend over time.
  4. When daily rate changes are minor, some lenders adjust closing costs and leave their price lists unchanged.
  5. Refinancing rates are usually close to those for purchases. But some types of refinancing are higher after regulatory changes.

So there’s a lot going on here. And no one can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.

Are mortgage and refinancing rates rising or falling?

Today etc

This morning, the Financial Times published a new series of articles by its economics editor. The headline was “A New Economic Era: Will Inflation Return Forever?”

This is correctly put to the question. Because no one can be sure about economic forecasting. But it reflects the lively debate that is currently taking place among economists, bankers, investors and politicians.

And it is this very discussion that can be dangerous. Because if enough people anticipate inflation, it could turn into a self-fulfilling prophecy.

The problem for you and me is that higher inflation almost always translates into higher mortgage rates. But, with luck, they can go through a slight climb.

Mortgage rates and inflation: why are rates going up?

Nothing is inevitable

What could be a much greater risk is hysteria. Right now, the Fed is spending about $ 40 billion every month on artificially low mortgage rates. But in the coming months, higher inflation may force it to slowly lower (“narrow”) this support rate. And the last time something like this was announced, mortgage rates skyrocketed in 2013.

Of course, nothing is inevitable. There are many threats that can kill the stone of economic recovery. And this will exclude the possibility of inflation and hysteria. But these threats appear to be far-off possibilities, while the scenarios described above seem much more likely.

For more information, check out our the last issue of this report over the weekend


Throughout most of 2020, the overall trend in mortgage rates has been clearly declining. According to Freddie Mac, a new weekly low was set 16 times last year.

The most recent weekly record low was on January 7, when it was 2.65% for 30-year fixed rate mortgages. But then the trend changed and rates went up.

However, in April these rises were mainly replaced by falls, although they slowed down in the second half of that month. Meanwhile, in May so far the falls outweigh the growth, albeit only slightly. In Freddie’s May 27 report, the weekly average is 2.95% (with 0.6 commission and points). down from 3.0% in the previous week.

Expert mortgage rate forecasts

Looking to the future, Fannie Mae, Freddie Mac and the Mortgage Bankers Association (MBA) have a team of economists dedicated to monitoring and predicting what will happen to the economy, the housing sector and mortgage rates.

And here are their current rate forecasts for the remaining quarters of 2021 (Q2 / Q21, Q3 / Q21, Q4 / Q21) and for Q1 2022 (Q1 / Y22).

The numbers in the table below refer to fixed rate mortgages for 30 years. Fannie was updated on May 19 and MBA on May 21. Freddie’s forecast is dated April 14th. But now it is only updated quarterly. So expect his numbers to start looking outdated soon.

Forecaster 2 quarter 21 years 3 quarter 21 years Quarter 4/21 1 quarter / 22 year
Fannie Mae 3.0% 3.1% 3.2% 3.3%
Freddie Mac 3.2% 3.3% 3.4% 3.5%
MBA 3.1% 3.3% 3.5% 3.7%

However, given so many unknowns, current projections may be even more speculative than usual.

Find your lowest rate today

Some lenders were scared by the pandemic. And they limit their offers to only the tastiest mortgages and refinancing.

But others remain brave. And you can still find the cash advance refinancing, investment mortgage, or large loan you need. You just need to shop more broadly.

But of course, you should compare purchases widely, no matter what kind of mortgage you want. As a federal regulator Consumer Financial Protection Bureau He speaks:

Finding a mortgage can lead to real savings. It may not seem like much, but saving even a quarter of a percent on a mortgage will save you thousands of dollars during the term of your loan.

Confirm New Bid (June 3, 2021)

Mortgage rate methodology

Mortgage reports get rates based on selected criteria from several credit partners every day. We get the average rate and annual interest rate for each loan type displayed in our chart. Since we average a set of rates, this gives you a better idea of ​​what you can find in the market. In addition, we average rates for the same loan types. For example, FHA is fixed with fixed FHA. The end result is a good snapshot of daily rates and how they change over time.


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