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Published: Jun 09, 2020 4 min read
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Low mortgage rates continue to contribute to a steady recovery in the housing market as sales of new homes increased in May.

Sales of new homes increased 21% over May 2019 numbers thanks to the easing of pandemic-mandated lockdown, pent-up demand, and record-low mortgage rates, according to survey results reported Friday by the The Wall Street Journal.

Coupled with a lower than expected unemployment rate, homebuyers appear ready to jump back into the market. "There are signs that the better than expected jobs situation is already having a positive effect on the housing market," said Danielle Hale, chief economist at Realtor.com, last week. "It's shaping up to be a hotter than expected summer."

The unemployment rate fell from 14.7% to 13.3% as the U.S. economy added 2.5 million jobs in May. "This points to an economy that is beginning to rebound from the impacts of the pandemic," according to Mike Fratantoni, chief economist of the Mortgage Bankers Association.

The real estate market continues to contribute to the economic rebound as consumers look to take advantage of record-low mortgage rates for home purchases as well as mortgage refinances.

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Average Mortgage Rates

The average interest rate for a 30-year fixed-rate mortgage ticked up to 3.18% with 0.7 points paid for the week ending June 4, according to Freddie Mac. That is just 0.3 percentage points higher than the all-time low of 3.15% set last week.

A year ago the average rate was 3.82%. A homeowner with a $250,000 mortgage balance paying 3.82% on a 30-year loan could cut their monthly payment from $1,168 to $1,078 by financing at today’s lower rates. (It is important to note that refinancing involves closing fees and will reset the clock on your mortgage, meaning you will have to make payments longer.)

According to Freddie Mac the average rate for a 15-year fixed-rate mortgage was 2.62%, unchanged from last week, while the average rate on a 5-year adjustable-rate mortgage dropped 0.3 percentage points to 3.10%.

Today’s Mortgage Rates

Of course mortgage rates vary widely by location and personal factors like the type of home you plan to buy, your down payment and your credit score. Here are today’s advertised mortgage rates at some of mortgage industry’s largest lenders.

Quicken

Quicken, a non-bank lender based in Detroit, is the nation’s leading mortgage lender by dollar origination volume.

Mortgage rates advertised for June 9:

30-year fixed: 3.638%

15-year-fixed: 3.178%

(Quicken doesn’t advertise a five-year adjustable rate. Rates are APRs.)

Wells Fargo

Based in San Francisco, Wells Fargo has more than 7,000 locations.

Mortgage rates advertised for June 9:

30-year fixed: 3.228%

15-year-fixed: 2.685%

5-year ARM: 2.943%

(Rates are APRs.)

JP Morgan Chase

Based in New York, JP Morgan Chase has nearly 5,000 U.S. branches.

Mortgage rates advertised for June 9:

30-year fixed: 3.064%

15-year-fixed: 2.582%

5-year ARM: 2.874%

(Rates based on New York City zip code 10006. Rates are APRs.)

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