by Erik J. Martin
With the CDC recently revising its guidelines on mask-wearing for fully vaccinated Americans, many are hopeful that the worst of the coronavirus is behind us. Mortgage seekers have benefitted from recent dips in the 30-year benchmark fixed mortgage rate, including a drop below 3 percent in late April.
But those in the know aren’t confident these historically low rates can continue their downward trajectory. In fact, many predict slightly higher rates in the weeks ahead. For homeowners and homebuyers on the fence, that may provide extra motivation to act sooner and capitalize on today’s low rates before further climbs occur.
June mortgage rate prognostications
Count Daryl Fairweather, chief economist of Redfin in Seattle, among the skeptics that rates will drop anytime soon.
“I don’t think we can assume that we will see record-low rates in the long run. With the vaccine numbers growing and the Biden administration getting ready to invest in infrastructure, it seems like the economy might bounce back to normal sooner than most of us expected,” she says. “Keeping in mind that different factors could cause some uncertainty, we’re probably looking at rates settling around 3.5 percent by the end of the year, with some normal ebbs and flows along the way.”
Greg McBride, CFA, Bankrate’s chief financial analyst, mirrors those musings.
“We’ll see modestly higher rates in the weeks to come as the economy heats up. But much of this is already reflected as a result of the run-up in rates earlier this year,” says McBride.
Also aboard with this prediction is Lawrence Yun, chief economist for the National Association of Realtors.
“Rates in June will be modestly higher. Large federal budget deficits necessitate more borrowing by offering higher interest rates. And inflation is perking up, which also necessitates charging higher rates, since the returned money is less powerful,” he says.
But not every pro is convinced that rates are going higher over the next 30 days.
“We’ve been seeing a trend of mortgage rates on primary residences trending down, and I expect that to continue through June based on the guidance of the Fed saying that it will not make any changes currently to its policy,” says Ralph DiBugnara, founder of New York City-based Home Qualified.