Bankrate: Mortgage Rates Drop Slightly

The current average interest rate on 30-year fixed mortgage dropped 15 basis points last week, dropping to an overnight rate of 5.39%, while the 30-year Jumbo loan rate dropped 17 basis points, according to Bankrate.

Last week, the 30-year fixed mortgage rate had been at 5.54% and the Jumbo rate was 5.51%, Bankrate reported today.

“Mortgage rates continue to surge, as they have since the beginning of the year, as the outlook takes shape for Fed rate hikes that are sooner and faster than previously expected,” Bankrate’s Chief Financial Analyst Greg McBride said. “More would-be homebuyers are priced out with each move higher in mortgage rates.”

Mortgage rates are often influenced by the yield on the 10-year Treasury Note, which stayed below 3% for much of last week.

The interest rate on the 15-year fixed mortgage dropped modestly, by three basis points, going from 4.75% to 4.72%, Bankrate said.

The only type of mortgage to see an increase in its interest rate was the adjustable rate, better known as an ARM, which went up six basis points to 3.84% from 3.78%. With the Federal Open Market Committee expected to continue raising interest rates, especially at its June and July meetings, ARMs are becoming more popular.