Today’s mortgage and refinancing rates: September 1, 2021

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Today’s mortgage rates

Mortgage type Average rating today
15 year fixed 2.38%
30 year fixed 3.24%
7/1 ARM 4.14%
10/1 ARM 4.09%
FHA 30 2.62%
VA mortgage 2.67%

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

Today’s refinancing rates

Mortgage type Average rating today
15 year fixed 2.50%
30 year fixed 3.39%
7/1 ARM 4.48%
10/1 ARM 3.84%
FHA 30 2.63%
VA mortgage 2.70%

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

Mortgage interest rate forecast

Mortgage rates have yet to be decided, but they could rise in 2021.

Last week,

The federal reserve
Chairman Jerome Powell said the Fed could start narrowing of asset purchases later this year. When the economy is struggling as it did during the COVID-19 pandemic, the Fed is buying up assets more aggressively to prop up the economy.

However, in the past few months, the US has been gradually recovering, so the Fed may announce a cut in asset purchases at its next meeting on September 21 and 22.

So how does this affect mortgage rates?

Mortgage rates could rise when the Fed starts buying fewer mortgage-backed securities. However, the Fed announced that the economy is not strong enough to boost federal funds rate in the near future. This could be a sign that mortgage rates will not rise significantly because rates tend to stay low when the economy is weak.

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