rewrite this title Mortgage Rates Today, Monday, June 1: Moving Lower – NerdWallet

Mortgage rates have been edging downward as markets seem … I don’t want to say oddly optimistic about the Iran war, but investors appear to be taking a rosier view than may be warranted. On one hand, OK, sure, negotiations to end the war remain ongoing. On the other hand, both sides launched strikes over the weekend, so it continues to be unclear how much ceasing is truly happening in this ceasefire.

The average interest rate on a 30-year, fixed-rate mortgage dropped to 6.32% APR, according to rates provided to NerdWallet by Zillow. This is 11 basis points lower than Friday and eight basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

For more on how what’s going on in the Middle East and at home has been affecting mortgage rates, keep reading below the chart.

🤓 From the Nerds: Kate on Rates

There are three reports incoming, each a bit different:

These measures have all been pretty strong lately, despite, y’know, everything. NerdWallet senior economist Elizabeth Renter notes that the U.S. job market is always complex, but “right now, it’s even more puzzling, as the labor market is shifting under changing demographics, broad economic uncertainty in the face of war and shifting policies, and the potential structural changes introduced by AI.”

If it looks like the job market is faltering or even just showing signs of increased stress, the Federal Reserve’s job will get that much more complicated. The Fed usually stimulates employment by cutting rates. But lowering interest rates in an inflationary environment risks further fueling inflation. Should both inflation and the labor market look imperiled, the Fed may have to decide which fire to put out and which one to allow to burn a bit longer.

Even though the Federal Reserve doesn’t set mortgage rates, the Fed’s actions influence the entire economy. Mortgage rates would likely head lower if it looked like Fed rate cuts were imminent, but if the central bankers are looking to raise rates, well, mortgage rates could rise, too.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you may want to start considering a refi if your current rate is around 6.82% or higher.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.

About the author

Kate Wood is a lending expert and certified financial health counselor (CHFC) who joined NerdWallet in 2019. With an educational background in sociology, Kate feels strongly about issues like inequality in homeownership and higher education, and relishes any opportunity to demystify government programs. Prior to NerdWallet, she wrote about home remodeling, decor and maintenance for This Old House.