Mortgage rates soar to pre-Brexit levels
The Brexit interest rate discount has disappeared.听听took a sudden turn higher Thursday and are now back to levels seen prior to Britain鈥檚 exit from the European Union, according to a NerdWallet survey of national lenders. Rates on 30-year mortgages have been gradually climbing higher over the past week and today most major lenders repriced their terms significantly higher.
In spite of today鈥檚 spike in interest rates, industry experts remain optimistic.
鈥淲e describe the last few weeks as A Tale of Two Rates,鈥� Sean Becketti, chief economist of Freddie Mac, said in a release. 鈥淚mmediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows. This week, markets stabilized and the 10-year Treasury yield rebounded sharply. In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield. This pattern suggests that mortgage rates are likely to remain low throughout the summer.鈥�
The NerdWallet Mortgage Rate Index compiles annual percentage rates 鈥� lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today鈥檚 average rates for the most popular loan terms:
Purchase Mortgage Rates: July 14, 2016
(Change from 7/13)
听3.64% APR (+0.05)
听3.01% APR (+0.05)
听3.39% APR (+0.01)
Refinance Mortgage Rates: July 14, 2016
(Change from 7/13)
听3.72% APR (+0.05)
听3.04% APR (+0.06)
听3.41% APR (+0.01)
Homeowners looking to lower their mortgage rate can shop for听.
Wells Fargo, Chase and BOA mortgage rates
Three major components of the NerdWallet Mortgage Rate Index are leading lenders听Wells Fargo, Chase and Bank of America.听Their current purchase mortgage rates are:
Bank mortgage rates 7/14
| 听 | |||
|---|---|---|---|
| Wells Fargo | 3.67% APR | 2.98% APR | 3.38% APR |
| Chase | 3.44% APR | 2.79% APR | 3.36% APR |
| Bank of America | 3.67% APR | N/A | 3.32% APR |
NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered听by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing听the most accurate view of the costs听a borrower might pay.
Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email:hal@nerdwallet.com. Twitter:.
This article first appeared at .
