Mortgage rates remain low as federal funds rate remains unchanged

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Mortgage rates are generally low today. Rates tend to stay low when the US economy is in trouble and rise when the economy is booming.

The coronavirus has wreaked havoc on the US economy and the country is slowly recovering. IN

The federal reserve
met on Wednesday to discuss economic factors that could affect various aspects of American life, including mortgage rates.

Current mortgage rates

Regular rates from Money.com; government-backed rates of RedVentures.

Current refinancing rates

Regular rates from Money.com; government-backed rates of RedVentures.

Mortgage interest rate forecast

The Federal Reserve decided not raise the federal funds rate at its meeting on Wednesday. IN federal funds rate is the interest rate that banks charge each other to borrow money and this affects interest rates around savings accounts, to car loans, to mortgage… When the federal funds rate remains low, consumer rates usually remain low as well.

But the board has increased its predictions for inflation by the end of 2021. Inflation skyrocketed over the past couple of months. The Fed believes the jump is a temporary reaction to the resumption of operations, but inflation is still growing faster than expected earlier this year.

High inflation is a sign of a strong economy. If inflation continues to rise in 2021, you might see a rise in mortgage rates as early as late summer.

Mortgage and refinancing rates by state

Check out the latest rates in your state using the links below.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington
West Virginia
Wisconsin
Wyoming

about the author

Laura Grace Tarpley is editor of Personal Finance Insider covering mortgages, refinancing, mortgage rates and lending. She is also a Certified Personal Finance Educator (CEPF). During her five years in personal finance, she has written extensively about ways to handle loans.

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