Mortgage Rates Today, Thursday, June 18: Oh They Are UP

The average interest rate on a 30-year, fixed-rate mortgage jumped to 6.39% APR as markets absorbed the Federal Reserve's latest policy meeting and the debut of Chair Kevin Warsh, according to rate data from Zillow.

The rate is 24 basis points higher than the previous day and five basis points higher than a week ago, NerdWallet reported on June 18 ^[1]. A separate NerdWallet report on June 22 said the rate had risen six basis points from Friday and 24 basis points from a week earlier ^[2]. A basis point is one one-hundredth of a percentage point.

The Federal Reserve concluded its June meeting on the afternoon of June 18, leaving the federal funds rate unchanged ^[1]. Markets had largely priced in the decision, but the release of the Summary of Economic Projections and Warsh's first press conference erased earlier rate declines that had followed a U.S.-Iran agreement to reopen the Strait of Hormuz ^[1].

Warsh declined to participate in the dot plot, the anonymized chart of central bankers' federal funds rate expectations, leaving 18 projections instead of the usual 19 ^[1]. The policy statement released at 2 p.m. was notably shorter than previous versions and omitted the forward guidance that had typically been included ^[1]. During the press conference, Warsh declined to discuss topics such as inflation, characterizing those questions as requests for forward guidance he would not provide ^[1].

The dot plot that was released implied a potential rate hike by the end of the year, with the median expectation for the funds rate edging above its current level ^[1]. Markets look to the Federal Reserve for signals on the direction of rate policy, and the limited commentary from the new chair left investors with less clarity ^[1].

For homeowners evaluating their options, NerdWallet noted that refinancing might make sense if current rates are at least 0.5 to 0.75 of a percentage point below a borrower's existing rate ^[1][2]. With the 30-year fixed rate at 6.39%, a homeowner with a current rate around 6.89% or higher could consider refinancing ^[1].