Current Mortgage Rates, April 30, 2021 | Rates Pushed Higher - NextAdvisor

tederes.blogspot.com

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Looking at today’s mortgage rates a number of significant rates inched upward. The averages for both 30-year fixed and 15-year fixed mortgages both drifted higher. We also saw an upward trend in the average rate of 5/1 adjustable-rate mortgages (ARM).

The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates go higher. If you’ve been considering a 10-year refinance loan, just know average rates remained unaltered.

Take a look at today’s refinance rates:

Current Mortgage Rates.

30-Year Fixed-Rate Mortgages

The average 30-year fixed mortgage interest rate is 3.11%, which is an increase of 4 basis points from last week.

You can use NextAdvisor’s mortgage calculator to determine your monthly payments and understand how adding extra payments will impact your loan. The mortgage calculator can also show you all of the interest you’ll pay over the life of the loan

15-Year Fixed-Rate Mortgages

The median rate for a 15-year fixed mortgage is 2.39%, which is an increase of 4 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.26%, which is a rise of 2 basis points from the same time last week.

An ARM is ideal for borrowers who will refinance or sell before the rate changes. If that’s not the case, their interest rates could end up being noticeably higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Just keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

Recent Mortgage Rate Movement

To see where mortgage rates are going we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at mortgage rate history, we’re in the middle of a period of unprecedented low rates. This table has current average rates based on information provided to Bankrate by lenders from across the nation:

Updated on April 30, 2021.

There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things including inflation and even the unemployment rate. When you see inflation increasing, that usually means mortgage rates are about to climb higher. On the other hand, lower inflation typically accompanies lower mortgage rates. With higher inflation, the dollar becomes less valuable. This scenario pushes buyers away from mortgage-backed securities, which leads to price decreases and the need for increasing yields. And higher yields require borrowers to pay higher interest rates.

The demand for housing can also impact mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of demand can drive interest rates up. And if there is less demand for mortgages, that can cause a decline in mortgage rates.

Where Are Mortgage Rates Headed in 2021?

Recently, mortgage rates spiked and crossed 3% for the first time since last summer. Even with this dramatic increase, rates are near or still below the levels many experts predicted they would hit in 2021.

What happens with rates will depend on the economy. And effectively dealing with the impacts of the coronavirus pandemic should boost our economic recovery. As the economy recovers, we should see inflation rise, which will put upward pressure on mortgage rates. But in spite of the potential for rising inflation, mortgage rates are likely to stay low this year. One reason for this: the Federal Reserve believes that low interest rates will help the economy rebound. So it’s likely to make policy decisions in favor of keeping rates low.

This Month’s Mortgage Predictions

Following the recent flurry of activity with mortgage rates, many experts are predicting mortgage rates will be calmer this month.

The economy is beginning to show signs of life and investors are expecting increased inflation. This has driven 10-year Treasury bond yields up, which is a key indicator for mortgage rates. But, the Federal Reserve has expressed a desire to keep rates low. Also, some in the industry believe that fears of inflation are somewhat overblown. So don’t expect to see a massive surge in rates this month.

This Week’s Mortgage Predictions

The current rise in mortgage rates is what we’d expect to see with the economy looking like it’s starting to recover. So this week’s mortgage rates forecast is for more of the same, but with only a potential for a moderate uptick.

While there is nothing this week that should cause a spike or dramatic downturn in rates, the unexpected can happen. And currently, the economy still has a long way to go to return to its pre-pandemic level.

Factors Behind Today’s Mortgage Rates

Your mortgage rate is based on a number of things. First off, your personal finances have a big influence. A higher credit score or having the ability to make a larger down payment will help you qualify for a better rate. However, not everything is in your control, many larger economic factors play a role as well:

Overall strength of the economy
Federal Reserve policies
Government and consumer spending
10-year U.S. Treasury yields
Inflation
Personal finances: Credit score, down payment, and debt-to-income ratio

How to Get the Best Mortgage Rate

Comparing mortgage offers is one of the best ways to get the lowest rate.

The mortgage rate you get depends on a number of factors lenders consider when assessing how likely you are to repay your mortgage. Your credit score and debt-to-income ratio (DTI) impact your mortgage rate. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your interest rate.

But lenders will evaluate your situation differently. So you can give the same documentation to three different lenders, and receive mortgage offers with vastly different rates and fees.

What You Need to Know About the Recent Rising Rates

Over the past few months, mortgage rates have been rising. Since we hit an all-time low average of 2.65% for 30-year fixed mortgages, we’ve seen rates increaseto 3.09%.

The recent 0.44% increase in mortgage rates will affect your bottom line. The monthly payment on a $300,000 30-year mortgage is now $71 a month at the current interest rates. However, even though buyers will have to adjust their homebuying budgets, don’t expect it to turn into a buyer’s market anytime soon.

The demand for the few homes on the market isn’t likely to be curtailed by the current mortgage rates, which are still historically low. So for the spring buying season, the real estate market is shaping up to be more of the same – tough for buyers.

How We Got These Rates

The rates we have included are averages provided by Bankrate.com Site Averages and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same from day to day.

National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.