Mortgage rates are rising. Don’t panic, just read this.

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Content provided by Credible Operations, Inc. NMLS No. 1681276, “Credible”. Not available in all states. www.nmlsconsumeraccess.org

Over the past week, mortgage rates have returned to refinancing levels, and home buying rates have eased slightly as investors await an economic rebound.

If you are thinking of refinancing an existing home or buying a new property, check out mortgage rates today because they have proven to be unpredictable and could rise again at any time.

Current mortgage refinancing rates as of July 9, 2021

The US economy has tried to reopen several times before the summer, but investors are not sure if anything will change until the fall. The Fed is not raising rates, and mortgage rates are hovering up and down at about the same average rates we’ve seen over the past few weeks.

Mortgage refinancing rates have returned to their previous level this week, as different mortgage loan terms have moved up and down.

  • 30 year fixed refinancing rates: 2.750%, down sharply from 2.990% yesterday.

  • 20-year fixed refinancing rates: 2.750%, unchanged at the end of the week

  • Fixed refinancing rates for 15 years: 2.000%, down sharply from 2.250%

  • 10-year fixed refinancing rates: 2.125%, down ↓ from 2.250% yesterday

Rates were last updated on July 9, 2021. These rates are based on the stated assumptions. here… Actual rates may vary.

Be sure to review and compare rates with multiple lenders if you decide to refinance. You can easily do this with Free online tool Credible and watch preliminary bids in just three minutes.

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As with today’s refinancing rates, home purchase rates are returning to the close of the week.

  • 30 year fixed mortgage rates: 2,750% up from 2,875% yesterday

  • Fixed rates on mortgages for 20 years: 2.625%, growth ↑ 2.500% yesterday

  • Fixed rates on mortgages for 15 years: 2.125%, weekly closing level

  • 10 year fixed mortgage rates: 2.000%, also unchanged at the end of the week

Rates were last updated on July 9, 2021. These rates are based on the stated assumptions. here… Actual rates may vary.

As previously mentioned, the economy does not appear to be opening up as local leaders had hoped. Thus, the Fed is not raising rates and houses are being sold at a fast pace. Leveraging low rates today will help buyers close ahead of the fall and the expected rate hike.

How to qualify for a lower mortgage rate

Many factors affect the mortgage rate and the terms that the lender can offer you. Lenders will consider the following factors:

  • Your credit ratings and credit history

  • How much do you want to borrow

  • The maturity you are looking for

  • What is your initial payment

  • Your income

  • Other factors

Fortunately, you can take steps to become as attractive as possible to potential lenders – and get the best mortgage rate available to you:

  1. Pay off your debts. Reducing other debt before applying for a mortgage can help improve your credit rating by decreasing your debt-to-income ratio. It can also help ensure that you have sufficient disposable income to pay your monthly mortgage payment.

  2. Choose a shorter period. Ten and 15 year mortgages tend to have the lowest interest rates. This is because a shorter term means less risk for lenders. If you can increase your monthly payment, a shorter term can mean a lower interest rate and greater savings over the life of the loan.

  3. Put as much as you can. Lenders – and many sellers – would like to see a down payment of at least 20% (more if you can). A higher down payment can help you get a lower rate, differentiate you from other buyers, and help avoid expensive private mortgage insurance (PMI) insurance.

  4. Check out our programs for aspiring homebuyers. There are federal and state programs that help newbies with down payments, closing costs, interest cuts, and more. Some even offer grants.

  5. Maintain your income. Try not to change jobs or quit before applying for a mortgage.

  6. Consider mortgage points. Mortgage points are the closing costs that you pay the lender upfront in exchange for a lower interest rate. While points may seem like a big hit at first, a lower interest rate can lead to significant savings in interest over the life of the mortgage.

Mortgage interest rate forecast

Mortgage rates are closely tied to the federal funds rate – banks charge each other for borrowing or lending their excess reserves overnight. The Federal Reserve System sets a target rate that banks must follow.

When the economy is not doing well, the Fed can cut rates, and mortgage rates usually fall as well as it becomes cheaper for lenders to lend. As the economy improves, the Fed could raise rates to try to contain inflation, and mortgage rates could rise.

While no one can predict exactly how mortgage rates will behave, this federal funds rate and inflation are some of several key metrics experts can take into account when making forecasts. Researchers from Mortgage Bankers Association, Freddie Mac as well as Fannie Mae everyone predicts – to one degree or another – an increase in mortgage rates over the course of 2021.

But keep in mind that average rates are not a guarantee of what rate you can qualify for when applying for a mortgage. Your credit rating, down payment amount, income, and many other factors will also play a role.

For your next home purchase, consider using Credible. you can check current mortgage rates from all our partner credit institutions without affecting your credit rating. Our free online tool is safe and easy to use, and it only takes a few minutes to pre-qualify.

What causes fluctuations in mortgage rates?

  • Inflation. While inflation is not a shock to homeowners in today’s marketplace, it could start to pick up when the economy reopens in the fall, reducing the purchasing power of homeowners and buyers.

  • Economic conditions: The COVID-19 pandemic has long played a major role in the real estate market, and if it drags on in certain areas, rates could remain low for longer than expected.

  • Federal Reserve System. While it is true that the Fed is not raising rates at this time, it probably expects any indication that it should raise interest rates to protect the strength of the dollar.

  • Creation Cost – Creation costs are likely to remain low with such high demand. As the Fed’s rates rise, so will the clearance costs.

  • Your own financial / credit history. As part of the loan buying process, you should try to pay off as much debt as possible, check your credit ratings with one of several free tools, and maintain a low debt-to-income ratio, which will make you a more attractive candidate for mortgage lenders.

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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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