In the world of mortgage refinancing, daily changes matter. This article offers a comprehensive analysis of recent fluctuations in the national average refi rate for all main loan types along with state-wise refi averages for a thorough look into this complex matter.
On a recent Wednesday, mortgage rates were experiencing a significant two-week decrease that was interrupted by the May jobs report released on Friday. The report indicated a more resilient labor market than forecasted, leading to a withdrawal from the bond market as traders abandoned their bond-loaded positions following the positive jobs results. When bond traders sell-off, prices decrease, and yields increase, creating a subsequent increase in mortgage rates.
The change from the midweek drop to the late-week increase was substantial for each type of new purchase mortgage. To illustrate this more clearly, let's look into the specifics of each loan type - 30-year, 15-year, and jumbo 30-year fixed-rate loans.
For new 30-year purchase loans, the late week increase abruptly ended a two-week slide and sent the rate back up to 7.02%-an 11 basis point increase over two days. Comparatively, rates on new 15-year purchase loans experienced a 6 basis point increase on Thursday followed by a 12 point surge on Friday, setting the average at 6.08%. For larger loans, specifically the jumbo 30-year mortgage rates, the increase was more moderated, ending the week with a slight 5 basis point increase to 6.97%.
It should be thoroughly noted that these rates are averages, and actual offers could vary based on borrower qualifications and specific loan conditions. Nevertheless, understanding the swings in these rates and their implications can aid potential borrowers in their decision-making process.