MCT Lifts Base Mortgage Rate to 6.45% as 30-Year Loan Rate Reaches 6.4485%
Updated
Updated · MCT Trading · Jun 15
MCT Lifts Base Mortgage Rate to 6.45% as 30-Year Loan Rate Reaches 6.4485%
1 articles · Updated · MCT Trading · Jun 15
Summary
MCT raised its base mortgage rate to 6.45% at the end of May, while the average 30-year fixed mortgage rate climbed 11.3 basis points from April 30 to 6.4485%.
Strong labor data, persistent inflation and renewed energy-price pressure pushed Treasury yields higher, leading bond markets to scale back expectations for Federal Reserve easing and keeping mortgage rates in a 6.375%-6.75% band.
That higher-rate backdrop is now expected to last through at least Q3 2026, with some economists and lenders warning the Fed could hold rates steady all year or even hike if inflation worsens.
Housing has held up despite affordability strain: existing home sales rose 3.2% in May to a 4.17 million annual pace, inventory reached about 1.55 million units, and the average home price hit a record $429,300.
Mortgage servicing rights values edged up in May, with MCT expecting gains of less than 5 basis points as elevated servicing-released premiums and scarce supply keep the bulk MSR market active.