IN average rating on fixed mortgages for 15 years has remained virtually unchanged since mid-April. It has remained at 2.47% over the past few weeks and has not moved more than 3 basis points from that level since the week of April 15.
Since the start of the coronavirus pandemic mortgage rates remained consistently low, which led to a wave of refinancing and a rush in home purchases across the country.
These stable low 15-year rates are great news for homeowners looking to refinance and buyers hoping to save on interest.
Interest rates on 15-year loans are generally lower than on 30-year mortgages, and with less time to complicate, they almost always save borrowers significant money in interest. But you have to pay for this in higher monthly payments. With a $ 300,000 loan, a 15-year mortgage owner can save about $ 100,000 in interest overall compared to a 30-year loan, but the monthly payments will be hundreds of dollars more.
It is unlikely that this string of low rates will last much longer. Experts predict that 2021 will end with higher rates, although most Bankrate’s experts weekly survey, expect rates to stagnate for at least another week, and possibly longer.
“This week we will see rates remain unchanged,” said Dick Lepré, senior loan officer at RPM Mortgage, Inc., Alamo, Calif. “Throughout September, rates will remain unchanged, but with annoying up and down moves in a market where there is no consensus.”