Today’s Mortgage Rates, April 22, 2021 | Rates Tick Down

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What we’re seeing today is a handful of principal mortgage rates have dropped off. Both 30-year fixed and 15-year fixed mortgage rates dropped off. We also saw an increase in the average rate of 5/1 adjustable-rate mortgages (ARM).

The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:

Current Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance, because the average rates for 15-year fixed and 30-year fixed refinance loans dropped. Shorter term, 10-year fixed-rate refinance mortgages increased.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Current Mortgage Rates.

30-Year Fixed-Rate Mortgages

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.08%, which is a decrease of 4 basis points from the previous week.

You can use NextAdvisor’s home loan payment calculator to work out what your monthly payments would be and play around with extra mortgage payments to wrap your head around how much you could save. The mortgage calculator can also show you the total interest you’ll pay over the life of the loan

15-Year Fixed-Rate Mortgages

The median rate for a 15-year fixed mortgage is 2.38%, which is a decrease of 4 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is, without a doubt, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much faster.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.24%, which is an addition of 15 basis points from the same time last week.

An adjustable-rate mortgage is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Just keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

Recent Mortgage Rate Movement

To see where mortgage rates are going we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at the history of mortgage rates, we’re in the middle of a period of unprecedented low rates. This table has current average rates based on information provided to Bankrate by lenders from across the country:

Today’s mortgage interest rates
Loan termToday’s RateLast weekChange
30-year mortgage rate3.08%3.12%-0.04
15-year fixed rate2.38%2.42%-0.04
30-year jumbo mortgage rate3.07%3.12%-0.05
30-year mortgage refinance rate3.14%3.17%-0.03

Rates accurate as of April 22, 2021.

A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, and this causes mortgage-backed securities to become less enticing for investors, which leads to falling prices and higher yields. And if yields increase, interest rates become more expensive for borrowers.

The demand for housing can also impact mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of demand can drive interest rates up. And if there is less demand for mortgages, that can cause a decline in mortgage rates.

What Is in the Future for Mortgage Rates?

In February, mortgage rates increased, moving above 3% for the first time in more than seven months. But, rates are still historically favorable for borrowers. And for 2021, some experts predict mortgage rates won’t go much higher. Although the possibility for future rates increases is there.

How we deal with coronavirus, and its impact on the economy, will greatly impact rates. As the economy recovers, we should see inflation rise, which will push interest rates higher. However, the Federal Reserve has expressed its desire to aid the recovery by keeping rates low beyond 2021. So it’s likely we’llsee historically low rates for the foreseeable future.

This Month’s Mortgage Predictions

Some experts forecast that this month mortgage rates will stabilize following weeks of strong growth.

The Federal Reserve would still like to keep rates low to boost the economy. And some experts believe the fears of inflation that have been driving rates higher are a bit overblown. So even though mortgage interest rates are likely to continue to rise over the long term, a massive spike isn’t likely.

This Week’s Mortgage Predictions

A modest rise is what some experts are forecasting for mortgage rates this week. This would be a bit of a leveling off from previous weeks.

However, the economy still has a long way to go before it recovers to pre-pandemic levels. If we get surprised by any bad news, that could put a damper on rates.

Factors Behind Today’s Mortgage Rates

There is a wide range of factors that influence mortgage rates. Some are broader economic factors, and others are related to your individual circumstances.

  • Condition of the economy
  • Decisions made by the Federal Reserve
  • Spending in the private and public sectors
  • Yields for 10-year Treasury bonds
  • Rate of inflation
  • Personal financial situation: Size of your down payment, credit history, and debt-to-income ratio

How to Qualify for the Lowest Mortgage Rate

There are three main components to getting the best mortgage rate: Debt-to-income ratio (DTI), loan-to-value ratio (LTV), and your credit score.

Having a credit score of at least 750 will help you qualify for the lowest rate. But, even a score of 700+ can get you a decent rate reduction compared to a lower credit score. However, once you get a credit score higher than 800, the mortgage rate discount won’t be meaningful.

How much debt you have will affect not only what price range of house you can afford, but also your interest rate. The maximum DTI for most mortgage loans is 43%. So If you make $3,000 a month you’d be allowed to have up to $1,290 in monthly bills. To secure the best mortgage rate, aim for a DTI ratio of 28% or less.

Mortgage providers give the largest mortgage rate reductions to home buyers that are deemed less risky. One surefire way to signal you’re a less risky borrower is to have a bigger down payment. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).

How Rising Mortgage Rates Impact Home Buying

Over the past few months, mortgage rates have surged. Since we hit an all-time low average of 2.65% for 30-year fixed mortgages, mortgage interest rates have jumpedto 3.09%.

Rising rates can have a significant impact on your homebuying budget. The 0.44% increase we’ve experienced has increased the monthly payment on a 30-year $300,000 loan by $71 a month. But don’t expect current rates to cool off the red hot real estate market.

The demand for the few homes on the market isn’t likely to be curtailed by the current mortgage rates, which are still historically favorable. So for the spring buying season, the real estate market is shaping up to be more of the same – a seller’s market.

How We Got These Rates

The rates we have included are averages provided by Site Averages and are calculated after the close of the previous business day. The lenders that the “ Site Average” tables include are not the same every day.

National lenders provide this mortgage rate information to It is possible the mortgage rates we reference has changed since this was published.

Mortgage Interest Rates by Loan Type

Home Purchase Rates

Mortgage Refinance Rates

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