Mortgage Rates Today, Tuesday, June 14: Down Again a Day Before the Fed

In a survey of lenders early Tuesday, average mortgage rates edged even closer to all-time lows. Many lenders kept rates unchanged, but of those who re-priced their terms, all were lower, and just enough to nudge overall averages down a tick for 15-year fixed rate and 5/1 adjustable rate mortgages.

The next expected catalyst for mortgage rates is tomorrow’s Federal Reserve meeting. While the Fed is expected to leave short-term interest rates unchanged, Fed Chair Janet Yellen has consistently maintained that the central bank’s Federal Open Market Committee will move ahead of economic indicators, not behind.

“Because monetary policy affects the economy with a lag, steps to withdraw this monetary accommodation ought to be initiated before the FOMC’s goals are fully reached,” Yellen said in a speech before The World Affairs Council of Philadelphia last week.

In a survey of lenders Tuesday morning, average rates for the most popular loan terms were maintaining three-year lows:

Mortgage Rates: June 14, 2016

(Change from 6/13)

30-year fixed: 3.70% APR (NC)

15-year fixed: 3.06% APR (-0.01)

5/1 ARM: 3.33% APR (-0.01)

Lock or float your mortgage rate?

Mortgage rate observers quoted in this space have consistently forecasted little change in rates through the prime home buying season, and in fact, through the end of the year. However, short-term spikes caused by unforeseen national or world events can upend even the most rational outlook. Interest rates, now at three-year — and nearing all-time — lows are undoubtedly favorable.

Of course, any decision to lock a mortgage rate should be based on the borrowers’ risk tolerance and their short- and long-term goals.

Compare mortgage rates

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.