Mortgage rates for July 9, 2021 | Prices are falling

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Various mortgage base rates have dropped today. Averages for both 30-year fixed and 15-year fixed mortgages fell. At the same time, average rates on 5/1 Adjustable Rate Mortgages (ARM) also declined.

Take a look at today’s rates:

Current mortgage refinancing rates

If you’ve been thinking about refinancing, there is good news because the average rates for 15-year and 30-year fixed refinancing loans have dropped. If you’ve been considering a 10-year refinancing loan, know that average rates have dropped too.

The average refinancing rates are as follows:

Find out current mortgage rates for today

30 year fixed rate mortgages

For Fixed rate mortgage for 30 years, the average rate you pay is 3.06%, which is 2 basis points lower than the previous week.

You can use NextAdvisor mortgage calculator to get an idea of ​​your monthly payments and understand how adding additional payments will affect your credit. The mortgage calculator can also show you the total interest you will pay over the life of the loan.

15 year fixed rate mortgage rates

Average rate for Fixed mortgage for 15 years is 2.37%, which is 2 basis points lower than a week ago.

The monthly payment on a 15 year fixed rate mortgage will be much higher. So finding a place in your budget for your monthly 30-year loan payment will be easier. However, 15-year loans have a number of significant advantages: you will save thousands of dollars in interest and pay off the loan much faster.

Rate on adjustable rate mortgages 5/1

BUT 5/1 ARM the average rate is 2.84%, which is 49 basis points lower than last week.

Adjustable rate mortgages are ideal for families who will sell or refinance before the rate changes. If they are not, their interest rates may turn out to be markedly higher after the rate adjustment.

For the first five years, the 5/1 ARM interest rate is usually lower than that of a fixed mortgage for 30 years. Just keep in mind that your rate can go higher and your payment can go up hundreds of dollars per month.

Mortgage Rate Trends

To see how mortgage rates will evolve, use the information gathered by Bankrate, owned by the same parent company as NextAdvisor. Looking at history of mortgage rates, we are seeing rates low like never before. The table below compares today’s average rates with what they were a week ago and is based on information provided to Bankrate by lenders across the country:

Updated on July 9, 2021.

A number of factors can affect mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value as inflation rises, and this makes mortgage-backed securities less attractive to investors, leading to falling prices and higher yields. And if profitability rises, interest rates for borrowers become more expensive.

While there is no single organization that sets mortgage rates, the policy of the Federal Reserve Bank can affect what happens with interest rates. And he expressed a desire to keep rates low for the foreseeable future to help boost economic recovery. To do this, he kept the federal funds rate (the overnight interest rate for interbank lending) at about zero and committed to buying large quantities of mortgage-backed securities every month. Both of these actions will help keep rates low.

Is now a good time to lock in your mortgage rate?

Mortgage rates go up and down on a daily basis and it is impossible to calculate the time in the market. Therefore, fixing the interest rate right now is a good idea, because in general the rates are extremely low.

When you lock in your rate, ask your lender how long the lock will last. A speed lock can last for 30 to 60 days, which usually gives you enough time to close before the lock expires. If you would like to extend the rate lock ask for fees, as many lenders charge a fee to extend the rate lock.

Where will mortgage rates go in 2021?

At the beginning of the year, mortgage rates rose sharply and exceeded 3% – a level that we have not seen since last summer. After this sharp increase, we saw a drop, as a result of which rates returned below 3%. The rates hover around 3%, but they are still close to or below the levels of many experts. predicted what they will reach in 2021

What happens to rates will depend on the economy. And effectively addressing the impact of the coronavirus pandemic is the key to our economic recovery. As the economy recovers, we should see inflation rise, which will put upward pressure on mortgage rates. But despite the potential for inflation to rise, it is unlikely that we will see a sharp rise in mortgage rates in 2021. One reason for this: The Federal Reserve believes that low rates will help our economic recovery. Thus, he is likely to make political decisions in favor of keeping rates low.

Forecast mortgage rates for 2021

Mortgage rates have stabilized somewhat after the ups and downs in the first few months of the year. They are likely to remain fairly stable over the course of the year, but may start to grow.

While there is nothing this week to trigger a spike or sharp cut in rates, unforeseen circumstances can occur. 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

There are three key factors to getting the lowest mortgage interest rate: the debt-to-income ratio (DTI), the loan-to-value ratio (LTV), and your credit rating.

To get the lowest rate you need a credit rating between 700 and 800. A credit rating above 800 is good, but will likely have minimal impact on your rate.

If you are looking to buy a new home, the less debt you have, the better. When you have fewer debt payments each month, it lowers your DTI. A lower DTI will help you get a lower interest rate.

Lenders provide the largest mortgage rate discounts to borrowers who are considered less risky. A larger down payment is a sign that lenders have a better chance of playing the game and that the likelihood of default on a loan is reduced. A down payment of 20% or more will save you money in two ways: with a better mortgage rate and you can avoid paying for private mortgage insurance (PMI).

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