As June draws to a close, we’re taking a look back at what’s happened to the mortgage industry over the course of the last month. Extreme market volatility has been a major factor for the entire industry lately, and it’s certainly had an impact on mortgage rates. As you might expect, any changes in the domestic and worldwide markets has repercussions that can be felt throughout the business world, and mortgage rates are no exception.

Mortgage Rates Fluctuating

Mortgage rates dropped a bit recently, even though the overall numbers are close to the highs in 2015. Lenders have stayed conservative with the rate sheets. Even though there have been improvements in rates recently as lenders were able to regain some ground, many lenders haven’t use that as inspiration to make big changes on their rate sheets.

The national mortgage rates are still on the rise, as the 30 year fixed mortgage rate crossed the 4% threshold. The most recent average for mortgage rates is 4.04%, according to the weekly survey from Freddie Mac. This is the highest rate for loans reported over the past eight months. The average rate on five-year ARMs increased from 2.96 percent to 3.01 percent; the fee fell from 0.5 to 0.4 point. The average rate on one-year ARMs fell from 2.59 percent to 2.53 percent; the fee remained at 0.2 point.

European Rates Are Impacting US Mortgage Rates

Economic events happening around the world have an impact on US mortgage rates. Recent news that influenced some economic turbulence in Europe includes details that negotiations between Greece and its international creditors broke down over issues related to Greece’s debt payment. After this news, pricing on mortgage-backed securities improved, having a direct influence on mortgage interest rates.

The battle between Greece and its creditors is hearing up still, and is expected to still lead to further implications not just for the world economy but for trickling down to US markets. It’s hoped that Greece will aim for striking deals with creditors to hold off defaulting on their debt. This continues to be a tenuous situation across Europe and around the world, and all eyes are on Greece to see what fallout could happen.

Second Quarter Rebound

The latest data from the NFP employment report, consumer sentiment index, job open data, and retail sales data does indicate that the second quarter of this year shows signs up a healthy rebound despite some of the challenges faced early on in the quarter.

This economic data is all mostly better than expected, leading many analysts to wonder if there’s any change in the Fed language about rate hikes. It appears that U.S. Central Bank officials want to see further evidence of a rebound before feeling certain that the economy is back on track.