The 30 year fixed mortgage rate was around 2.99% for the week of June 3rd. This is a slight increase of the 2.95% from the previous week. Over two months ago, fixed mortgage rates hit 2.65%, which was the lowest percentage since 1971. For reference, mortgage rates were 3.18% just around a year ago today.
These numbers have significance, because the lower the mortgage rates, the higher the U.S. has in home sales and refinances. Home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough.
Basically, we are seeing that there are a lot of potential homebuyers, however, the competition to buy these homes is too strong. In addition, there is not enough construction happening to get more homes on the market. However, it is important for current homeowners to consider refinancing since the mortgage rates are so low.