Mortgage Interest Rate News 05-10-2016

The month of May has been good for mortgage rates as bond yields have declined the first week of May.  Mortgage rates have followed and some lenders are offering rates below 2015 levels and a few are offering rates we’ve not seen in 3 years.  Why?  After a move up in mortgage rates during the month of April; the bond market has reversed course.  The 10 year yield topped 1.90% and since then has fallen back near the 1.75% level.  Also mortgage volume has only been average or a tad bit above average for most lenders and because of this lenders are being more aggressive with their rates to try and increase volume.

Mortgage rates should continue to be aggressive through out May provided that bond yields stay within their recent range.  15 year fixed rates are are below 3.00% and 30 year fixed rates are below 3.625%.  Mortgage rates will play an important part during the summer buying season as homeowners can typically afford a higher price tag with low rates.