Optimal Blue data reflecting loans locked by June 29 showed most major mortgage categories still lower than a week earlier, even as daily rates ticked higher and the Fed held its benchmark at 3.50%–3.75%.
The average U.S. rate for a 30-year, fixed-rate conforming mortgage loan rose to 6.419%, up about 1 basis point from the previous day, while the 15-year fixed-rate conforming average edged up to 5.744%, based on Optimal Blue data reviewed June 30 and reflecting loans locked as of June 29. Despite the daily increase, rates remained below week-earlier levels across most major categories: 30-year conventional fell to 6.419% from 6.511%, 15-year conventional to 5.744% from 5.802%, 30-year jumbo to 6.460% from 6.582%, 30-year FHA to 6.267% from 6.278%, and 30-year VA to 6.023% from 6.141%, while 30-year USDA rose to 6.228% from 6.182%. At current rates, borrowing $300,000 would generate about $376,891.48 in lifetime interest on a 30-year mortgage and about $148,247.62 on a 15-year loan, using the Office of Financial Readiness mortgage calculator. The Federal Open Market Committee left the federal funds rate at 3.50%–3.75% at its June 16-17 meeting, with the next meeting set for July 28-29. Mortgage applications rose 1% in the week ending June 19, according to the Mortgage Bankers Association, with purchase applications down slightly and refinancing activity up. Mike Fratantoni, MBA’s SVP and chief economist, said mortgage rates “changed little over the course of last week, despite the more hawkish tone from the FOMC at its June meeting.”