Brexit Break for Mortgage Rates Showing Signs of Reversing

For the first time since Britain’s exit from the European Union last week, 30-year mortgage rates are showing signs of reversing direction. After dropping more than an eighth of a point in four days, the average rate on the popular loan term ticked higher Thursday morning, according to the NerdWallet Mortgage Rate Index.

Following the U.K.’s surprising “Brexit,” mortgage rates plummeted as investors sold off equity stakes and bought into bonds. Stock markets have recovered over the past two days and the bond fever has subsided. As a result, mortgage rates have leveled off.

Mark Boud, chief economist of Metrostudy, a housing market research firm, believes mortgage rates won’t move much from current levels.

“We expect them to remain flat during the summer months and possibly increase during the fourth quarter of 2016,” Boud says in a video report. “Thereafter, we’re forecasting a gradual rise in mortgage rates throughout the next five years.”

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 30, 2016

(Change from 6/29)

30-year fixed: 3.63% APR (+0.01)

15-year fixed: 3.03% APR (NC)

5/1 ARM: 3.32% APR (NC)

Compare mortgage rates

Refinance Mortgage Rates: June 30, 2016

(Change from 6/29)

30-year fixed: 3.71% APR (NC)

15-year fixed: 3.04% APR (NC)

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 6/30

	30-year fixed	15-year fixed	5/1 ARM
Wells Fargo	3.68% APR	3.05% APR	3.41% APR
Chase	3.44% APR	2.88% APR	3.32% APR
Bank of America	3.66% 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