Today’s mortgage and refinancing rates: Aug 4, 2021

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Today’s mortgage rates

Mortgage type Average rating today
15 year fixed 2.30%
30 year fixed 3.22%
7/1 ARM 4.17%
10/1 ARM 4.04%
FHA 30 2.59%
VA mortgage 2.62%

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

Today’s refinancing rates

Mortgage type Average rating today
15 year fixed 2.45%
30 year fixed 3.40%
7/1 ARM 4.53%
10/1 ARM 4.39%
FHA 30 2.60%
VA mortgage 2.67%

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

Mortgage interest rate forecast

IN

The federal reserve
got together last week to discuss how to respond to inflation. During a press conference, Chairman Jerome Powell said Fed will continue its current approach; The Fed is keeping the federal funds rate unchanged and will continue to buy mortgage-backed securities without any adjustments.

With the Fed’s announcement, there probably won’t be any significant changes anytime soon when it comes to mortgage rates. During the pandemic, the Fed constantly bought mortgage-backed securities, which helped keep mortgage rates low.

During the press conference, Chairman Powell also said that the Fed will continue to pursue its current approach to mortgage-backed securities until “substantial further progress is made.”

Since the Fed has decided to leave it as it is, it looks like mortgage rates are likely to remain low in the fall. However, if the Fed decides at a future meeting to start a slowdown in the rate of growth in mortgage-backed securities prices, we may see an increase in rates by the end of 2021.

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