30-year mortgage rate declines | Jul 15, 2021

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Today’s 30-year average fixed-rate mortgage rate is virtually unchanged from yesterday, dropping just 0.001 percentage points to 3.332%. Other categories of loans are generally higher, with the exception of 15 year fixed rate purchase and refinancing loans, both of which are lower.

Mortgage rates are still close to historic lows. Highly qualified buyers can find attractive prices for any buying a house or mortgage refinancing

  • The latest rate on a 30 year fixed rate mortgage is 3.332%.
  • The latest 15 year fixed rate mortgage is 2.42%.
  • The last rate for the jumbo ARM 5/1 is 2.243%.
  • The latest ARM rate corresponding to 7/1 is 4.13%.
  • The latter figure for ARM meeting the 10/1 requirements is 4.244%.

Mortgage Rates Today: 30 Year Fixed Rate Mortgage Rates

  • The 30-year rate is 3.332%.
  • This is a one-day defold 0.001 percentage points. ⇓
  • This is one month defold 0.043 percentage points. ⇓

A fixed rate mortgage means that the interest rate and monthly payment will remain the same throughout the life of the loan. The most popular type of fixed rate mortgage is the 30 year mortgage due to its relatively low monthly payments and long payback period. On the other hand, the interest rate is usually higher than on a short-term loan, which means that you will end up paying more.

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Average mortgage rates

Data based on US mortgages closed on July 14, 2021.

Loan type the 14 th of July Last week Change
15 years fixed usual 2.42% 2.39% 0.03%
30 years fixed usual 3.33% 3.31% 0.02%
7/1 ARM speed 4.13% 4.13% 0.0%
10/1 ARM speed 4.24% 3.97% 0.27%

Your actual rate may differ

Mortgage rates today: 15 years fixed rate mortgage rates

  • The 15-year rate is 2.42%.
  • This is a one-day defold 0.006 percentage points. ⇓
  • This is one month defold 0.018 percentage points. ⇓

A 15 year mortgage is a short term fixed rate loan. The loan will be repaid in half the 30-year term, but since the repayment period is shorter, the monthly payments will be higher. However, the interest rate is usually lower than the long-term loan rate, which means that you will pay less.

Mortgage Rates Today: Giant 5/1 Adjustable Rate Mortgage Rates

  • The 5/1 ARM rate is 2.243%.
  • This is a one-day increase 0.013 percentage points. ⇑
  • This is one month defold 0.14 percentage points. ⇓

An alternative option is an adjustable rate mortgage. With ARM, the interest rate will be fixed for the first few years and then reset regularly thereafter. Monthly payments will also be fixed at first, and then will change depending on the rate change. For example, ARM 5/1 will have a flat rate for the first five years, after which it will be adjusted every year. Other common ARM terms include 7/1 and 10/1. ARM typically lasts 30 years.

Mortgage rates today: VA, FHA and large loan rates

Average rates for FHA, VA and large loans:

  • The rate on a 30-year FHA mortgage is 3.094%. ⇑
  • The rate on a 30 year VA mortgage is 3.154%. ⇑
  • The rate on a 30-year large mortgage is 3.502%. ⇑

Mortgage refinancing rates today

Average rates for 30-year loans, 15-year loans and large ARM 5/1 are:

  • The refinancing rate for the 30-year fixed rate refinancing is 3.734%. ⇑
  • The refinancing rate for the 15-year fixed rate refinancing is 2.629%. ⇓
  • The refinancing rate for the large ARM 5/1 is 2.528%. ⇑
  • The refinancing rate for an ARM qualifying 7/1 is 4.247%. ⇑
  • The refinancing rate for a 10/1 qualifying ARM is 4.49%. ⇑
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Average mortgage refinancing rates

Data based on US mortgages closed on July 14, 2021.

Loan type the 14 th of July Last week Change
15 years fixed usual 2.63% 2.61% 0.02%
30 years fixed usual 3.73% 3.72% 0.01%
7/1 ARM speed 4.25% 4.14% 0.11%
10/1 ARM speed 4.49% 4.31% 0.18%

Your actual rate may differ

Where are mortgage rates going this year?

Mortgage rates fell until 2020. Millions of homeowners have responded to low mortgage rates by refinancing existing loans and taking on new ones. Many people have bought homes that they might not have been able to afford if the rates were higher.

In January 2021, rates briefly fell to their lowest level on record, but were on an upward trend throughout the month and in February.

Looking ahead, experts believe that interest rates will rise even more in 2021, but moderately. Factors that could affect the numbers include the rate at which COVID-19 vaccines are spreading and when lawmakers may negotiate a different economic aid package. An increase in vaccinations and government incentives could lead to better economic conditions, which will boost performance.

While mortgage rates are likely to rise this year, experts say the rise will not happen overnight and will not spike. Rates are expected to remain near historically low levels during the first half of the year and will rise slightly at the end of the year. Even with an increase in rates, this will be an opportune time to finance a new home or refinance.

Factors affecting mortgage rates include:

  • Federal Reserve System. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to keep money moving through the economy by cutting the short-term interest rate of the Federal Fund to 0-0.25%, which is just as low. how they go. The central bank has also pledged to buy mortgage-backed securities and Treasuries, supporting the housing finance market. The Fed has repeatedly reaffirmed its commitment to this policy for the foreseeable future, most recently at a policy meeting in late January.
  • Ten-year Treasury bond. Mortgage rates are moving in step with the government’s 10-year Treasury bond yields. The yield fell below 1% for the first time in March 2020 and has grown slowly since then. Yields are currently hovering above 1% YTD, resulting in a slight increase in interest rates. On average, the difference between Treasury bond yields and mortgage base rates is typically 1.8 points.
  • Wider economy… The unemployment rate and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means that the economy is weak, which can lead to lower interest rates. Thanks to the pandemic, the unemployment rate hit record highs early last year and has yet to recover. GDP has also suffered, and while it has recovered somewhat, there is still a lot of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers receive. It will take a little effort to qualify for the lowest mortgage rates and will depend on both personal financial factors and market conditions.

Check your credit score and credit report. Errors or other red flags that can lower your credit score. The borrowers with the highest credit ratings are the ones who will get the best rates, so checking your credit report before you begin your home search process is key. Taking corrective action will help you improve your bottom line. If you have a large credit card balance, paying them off can also provide a quick boost.

Save on a hefty down payment. This will lower your loan-to-value ratio, which means how much of the home’s value the lender has to finance. A lower LTV usually means a lower mortgage rate. Lenders also want to see money held in the account for at least 60 days. He tells the lender that you have the money to finance the purchase of the home.

Take a closer look at the best price. Don’t settle for the first interest rate the lender offers you. Check with at least three different lenders to find out who offers the lowest percentage. Also consider different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

Also take the time to learn about the different types of loans. Although a 30 year fixed rate mortgage is the most common type of mortgage, consider a shorter term loan such as a 15 year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a regular 30 year mortgage. Compare all the costs to see which one best suits your needs and financial situation. Government loans, such as loans from the Federal Housing Administration, the Department of Veterans Affairs and the Department of Agriculture, may be more affordable options for those who qualify.

Finally, lock in your bid. Locking the rate after you have found a suitable rate, loan product, and lender will help ensure that your mortgage rate does not rise before you close the loan.

Our mortgage rate methodology

Money Daily Mortgage Rates shows the average rate offered by over 8,000 lenders in the United States for which the most recent business day rates are available. Today we are showing rates for Wednesday, July 14, 2021. Our rates reflect what a typical borrower with a credit rating of 700 can expect to pay for a home loan right now. These rates were offered to people saving 20% ​​and include discounts.

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