Lenders continue to discount their terms as mortgage rates eased slightly lower Friday — and a new report says the U.S. housing market recorded its fastest sales pace on record in May.
A NerdWallet lender survey early Friday found average mortgage rates for the most popular loan terms declined incrementally from yesterday. NerdWallet compiles lender interest rates plus fees (APR) — the most accurate way for consumers to compare rates:
Mortgage Rates: June 17, 2016
(Change from 6/16)
30-year fixed: 3.67% APR (-0.01)
15-year fixed: 3.05% APR (NC)
5/1 ARM: 3.31% APR (-0.01)
Meanwhile, the typical home went under contract in 42 days last month — the fastest pace on record, according to real estate brokerage Redfin.
“After almost a decade of undersupplied housing stock, competition is fierce,” said Redfin chief economist Nela Richardson. “What’s new in 2016 is that we’re seeing the intensity of fast sales and bidding wars even in affordable markets like Grand Rapids and Omaha, where the typical home sold within two weeks last month.”
The typical home went under contract in just 42 days, a week faster than a year ago, and the lowest median days on the market since 2009 when Redfin began keeping such records.
The company also reports home prices increased year-over-year 4.3% in May, whiles sales rose by 7%.
Lock or float your mortgage rate?
Barring a global economic surprise, such as Britain voting to leave the European Union in next week’s referendum, economists generally believe mortgage rates will remain low in the near term.
As always, any decision to lock a mortgage rate should be based on the borrowers’ risk tolerance and their short- and long-term goals.
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.
The article Mortgage Rates Today, Friday, June 17: Rates Lower, Home Sales at Fastest Pace on Record originally appeared on NerdWallet.