Looking at today’s mortgage rates the most rates inched up. The averages for both 30-year fixed and 15-year fixed mortgages both increased. We also saw no change in the average rate of 5/1 adjustable-rate mortgages (ARM).
Take a look at today’s rates:
What this means for borrowers:
Mortgage interest rates continue to linger near historic lows, which increases how much homebuyers can borrow. The flip side of this is that demand for homes has stayed strong and property values are increasing. So in many areas, soaring home prices have offset the benefits of affordable interest rates. Adding to the problem is low housing inventory, and supply chain disruptions have increased the cost of building new homes. So buyers are likely to face a tough market for the remainder of this year.
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 increase. If you’ve been considering a 10-year refinance loan, just know average rates also moved up.
The average refinance rates are as follows:
Check out mortgage rates that meet your distinct needs.
30-Year Fixed Mortgage Rates
For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.03%, which is an increase of 5 basis points from last week.
You can use NextAdvisor’s mortgage calculator to determine your monthly payments and see how much you’ll save if you make extra payments. The mortgage calculator can also show you the total interest you’ll pay over the life of the loan.
15-Year Mortgage Rates
The median rate for a 15-year fixed mortgage is 2.33%, which is an increase of 5 basis points from seven days ago.
A 15-year, fixed-rate mortgage’s monthly payment is larger and will put more stress on your monthly budget than a 30-year mortgage would. But, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much earlier.
5/1 ARM Interest Rates
A 5/1 ARM has an average rate of 2.80%, the same rate compared to a week ago.
An adjustable-rate mortgage is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being remarkably 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. 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.
Mortgage Interest 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 the middle of a period of unprecedented low rates. 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 August 9, 2021.
A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, and this causes mortgage-backed securities to become less enticing for investors, which leads to falling prices and higher yields. And if yields increase, interest rates become more expensive for borrowers.
While there is no single entity that sets mortgage rates, the Federal Reserve Bank’s policies can impact what happens with interest rates. And it has expressed its desire to keep rates low for the foreseeable future to aid in the economic recovery. To achieve this, it has kept the Federal Funds rate (the overnight interest rate for inter-bank lending ) to roughly zero, and it has committed to purchasing a large number of mortgage-backed securities each month. Both of these actions will help to keep rates low.
When Should I Lock in My Mortgage Rate?
Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are exceptionally low.
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.
What Does the Future Hold for Mortgage Rates?
To start the year, mortgage rates spiked and crossed 3% – a level we haven’t seen since last summer. After this dramatic increase, we saw a fall that brought rates back under 3%. Since then, rates have hovered around 3%, still near or below the levels many experts predicted they would hit in 2021.
America’s economic recovery will greatly impact rates. if we continue to see economic growth the expectation is that rates will rise. And although inflation looks to be rising, the Federal Reserve believes this is only temporary. So inflation hasn’t pushed rates higher. But the road to a full recovery will be a longer one. So if rates rise, it’s more likely to happen over time, not all at once.
2021 Mortgage Rate Forecast
In the near term, any changes in mortgage rates should be modest. So rates should hover near 3% for the time being.
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.
How to Get the Lowest Mortgage Rate
Getting loan offers from two or three lenders is one of the best ways to get the lowest rate.
Your mortgage rate depends on a variety of factors lenders consider when assessing how likely you are to repay your home loan. Your credit score impacts your mortgage rate. And even the property’s value compared to your loan balance is important. So increasing your down payment can reduce your mortgage interest rate.
But banks will consider your circumstances differently. So you can give the same documentation to three different mortgage providers, and find that none of the mortgage rates and fees you are offered are the same.
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August 09, 2021 at 06:30PM
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Current Mortgage Interest Rates, August 9, 2021 | Rates Trending Higher - NextAdvisor
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