Today’s mortgage and refinancing rates: Jul 21, 2021

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Today’s mortgage rates

Mortgage type Average rating today
15 year fixed 2.34%
30 year fixed 3.26%
7/1 ARM 4.13%
10/1 ARM 4.0%
FHA 30 2.56%
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 2.55%
30 year fixed 3.59%
7/1 ARM 4.43%
10/1 ARM 4.28%
FHA 30 2.58%
VA mortgage 2.64%

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

Mortgage interest rate forecast

Mortgage rates are usually low when the economy is bad. Rates have remained low since spring 2020 as the coronavirus pandemic has wreaked havoc on the U.S. economy.

The economy has gradually improved over the past few months as Americans receive vaccines and businesses reopen. Unemployment rates are falling and inflation growing – two signs of economic recovery.

However, mortgage rates have yet to rise in response to the improvement in the economy.

IN

The federal reserve
will take place on the following Tuesday and Wednesday, July 27 and 28. The Fed is actively buying mortgage-backed securities, which keeps mortgage interest rates at a stable level. If the Fed announces a slowdown in the purchase of mortgage-backed securities, we could see an increase in mortgage rates at the end of 2021.

The Fed may also reveal its plans to raise federal funds rate at this meeting. At its June meeting, the Fed said it plans to raise the federal funds rate. twice in 2023which is more aggressive than previously stated. If the Fed has more news on the federal funds rate, it could be another indicator that mortgage rates will rise in the fall.



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