Mortgage Rates 20 Year fixed

Federal Reserve Chair Janet Yellen will appear before Congress for two days of testimony this week, beginning tomorrow. Analysts will be looking for any sign of change in the central bank’s monetary strategy, and such a hint could move the bond market — and as a result, mortgage rates.

For now, many observers believe the Fed may wait on raising interest rates a while longer, until the global economy gains more solid footing.

In the meantime, of the lenders who repriced their terms this morning, the move was unanimous: Mark up loan rates.

NerdWallet compiles annual percentage rates — lender interest rates plus fees — the most accurate way for consumers to compare rates. Here are the average rates for the most popular loan terms:

(Change from 6/17)

30-year fixed: 3.70% APR (+0.01)

15-year fixed: 3.07% APR (+0.02)

5/1 ARM: 3.33% APR (+0.02)

Worries regarding a British exit from the European Union will be answered this week, with a referendum vote on Thursday. Mortgage rates could suffer some volatility until the “Brexit” matter is resolved.

Lock or float your mortgage rate?

With mortgage rates hugging three-year lows, analysts are expecting little change in the near term. However, with the Fed seeking an opportunity to raise short-term rates before the end of the year, mortgage lenders are bound to follow — at some point.

“Taking everything together, my expectation would be for a minimal increase in mortgage rates when the Fed first tightens, ” Brad Hunter, chief economist for HomeAdvisor, tells NerdWallet. “Between now and the end of the year, however, I would expect mortgage rates to begin moving higher. I am forecasting gradual increases in mortgage rates over the next two years.”

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.

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