Current Mortgage Rates, May 19, 2021 | Rates Go Up - NextAdvisor

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A handful of closely followed mortgage rates all increased today. Both 30-year fixed and 15-year fixed mortgage rates increased. We also saw no change in the average rate of 5/1 adjustable-rate mortgages (ARM).

Take a look at today’s rates:

Looking at Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their average rates rise. Shorter term, 10-year fixed-rate refinance mortgages also saw an increase.

The average refinance rates are as follows:

Find current mortgage rates for today.

30-Year Fixed-Rate Mortgages

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.09%, which is a growth of 4 basis points from the previous week.

You can use NextAdvisor’s mortgage calculator to get an idea of what your monthly payments will be 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 2.37%, which is an increase of 2 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.15%, the same rate from seven days ago.

An adjustable-rate mortgage 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 significantly 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 rate could climb higher and your payment might grow by hundreds of dollars a month.

Mortgage Rate Trends

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 historical mortgage rates, we’re in an exceptionally low rate environment. The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders from across the nation:

Rates accurate as of May 19, 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.

Should I Lock in My Mortgage Rate Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool, because it protects you if rates go up. And with interest rates so low right now, you should lock in your rate as soon as you can.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If you want to extend the rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

Where Are Mortgage Rates Headed in 2021?

To start the year, mortgage rates rose sharply and crossed 3% for the first time since July 2020. After this dramatic increase, we saw a decline that brought rates back under 3%. With rates hovering around 3%, they are still near or 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 is key to our economic recovery. As the economy recovers, we should see inflation rise, which will push interest rates higher. 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 low rates will help our economy regain its momentum. So it’s unlikely to make moves that could increase rates.

This Week’s Mortgage Predictions

Mortgage rates have leveled off a bit after an up and down first few months of the year. Looking forward, they are likely to remain reasonably stable but could start to trend higher.

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.

What Impacts the Current Mortgage Rates?

There is a wide range of factors that influence mortgage rates. Some are broader economic factors, and others are related to your personal situation.

Overall strength of the economy
Federal Reserve policy decisions
Spending in the private and public sectors
10-year U.S. Treasury yields
Rate of inflation
Personal situation: Loan term, type and location of the property, and credit score

How to Qualify for the Lowest Mortgage Rate

Getting loan offers from a few lenders is a great way to get the lowest mortgage interest 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) factor into the decision. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your mortgage rate.

But lenders will consider your circumstances differently. So you can give the same documentation to three different mortgage providers, and get offers with three different mortgage rates and fees that vary just as much.

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 every 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.