The average rate for a 30-year fixed mortgage is 3.51 percent, a decrease of seven basis points over the last week. Last month on the 2nd, the average rate on a 30-year fixed mortgage was higher at 3.53 percent.

Several key mortgage rates ticked downward this week. The average rates on 30-year fixed and 15-year fixed mortgages both trended down. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also trended down.

The average rate for a 30-year fixed mortgage is 3.51 percent, a decrease of seven basis points over the last week. Last month on the 2nd, the average rate on a 30-year fixed mortgage was higher at 3.53 percent.

At the current average rate, you’ll pay a combined $449.60 per month in principal and interest for every $100,000 you borrow. That’s $3.92 lower, compared with last week.

The average 15-year fixed-mortgage rate is 2.83 percent, down six basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $682 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.

The average rate on a 5/1 adjustable rate mortgage is 3.20 percent, down 11 basis points from a week ago.

These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.20 percent would cost about $432 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

This week, 30 percent of the financial experts predict that rates will rise, none see a continued drop and 70 percent say that rates will remain relatively unchanged (plus or minus 2 basis points).

Dick Lepre, a senior loan officer at RPM Mortgage, Inc. is among the few who believe rates will rise. He said, “The Treasury techs are bearish (lower prices, higher yields) which would, in normal times, signal slightly higher rates. Equity buying is strengthened by a reopening of the economy in many states. This is despite massive unemployment, some very large bankruptcies and uncertainty if the pandemic will return. The underlying cause of the increase in equity prices is massive quantitative easing (QE) by the Fed. If GDP and job growth do not return, equities will be significantly overvalued and some of that money in equities will move to the safety of fixed income securities including mortgages. Rates will still remain low to at least the end of this year.”

Michael Becker, a branch manager at Sierra Pacific Mortgage, see rates as being flat. He said, “Despite equity markets rallies over the last few weeks, bonds have not sold off as often happens. Treasury yields and mortgage rates have remained low and will continue to stay low in the coming week as the bond market is taking a wait-and-see attitude in regards to the increase in economic activity that will result as states start opening up for business.”

Logan Mohtashami, a senior loan officer at the AMC Lending Group, adds, “The 10-year yield refuses to break out or break under. Pricing for mortgage rates has gotten a lot better recently since the mortgage market meltdown in March, but it still can go lower. However, it needs the 10-year yield to breakdown and that most likely will need stocks to fall. The economic data has bottomed out and purchase application data showed positive year-over-year growth. We are slowly getting America Back!”

Jim Sahnger, a mortgage planner with Schaffer Mortgage, said, “Mortgage rates should remain range-bound. In the face of unemployment swelling to nearly 40 million people, the stock market continues to push higher, defying the gravity of negative economic news. The 10-year Treasury and mortgage rates are down roughly 0.125 percent since the stock market lows of March 25, however, the DJIA is up nearly 22 percent and the S&P is up 37 percent. I understand the optimism of finding a cure or a vaccine for COVID-19 but with average times to approval for drugs through the FDA, a timeline of 18 months seems doubtful. All this means that mortgage rates should remain unchanged until we get something that radically changes our current path.”