Today’s Mortgage Rates, April 23, 2021 | Benchmark Rates Mixed

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What we’re seeing today is mortgage rates moving all over the place. Average 30-year fixed mortgage rates didn’t move, but average 15-year fixed mortgage rates trailed off. We also saw an upswing in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

Current Mortgage Refinance Rates

In a surprising move, the national average rate for a 30-year fixed refinance moved up, while 15-year fixed-rate refinances trailed off. If you’ve been considering a 10-year refinance loan, just know average rates inched up.

The average refinance rates are as follows:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

The average 30-year fixed mortgage interest rate is 3.07%, which is unchanged from seven days ago.

You can use NextAdvisor’s mortgage calculator to determine your monthly payments and calculate what you’ll save with additional payments. The mortgage calculator can also show you all of the 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 2.35%, which is a decrease of 6 basis points from the same time last week.

A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.24%, which is a climb of 5 basis points from seven days ago.

An ARM is ideal for individuals who will refinance or sell 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 your rate could climb higher and your payment might grow by hundreds of dollars a month.

Recent Mortgage Rate Movement

To see where mortgage rates are moving we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at historical mortgage rates, we’re seeing low rates like never before. The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders from across the country:

Average mortgage interest rates
ProductRateLast weekChange
30-year fixed3.07%3.07%N/C
15-year fixed2.35%2.41%-0.06
30-year jumbo mortgage rate3.07%3.06%+0.01
30-year mortgage refinance rate3.14%3.13%+0.01

Rates as of April 23, 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.

Where Are Mortgage Rates Headed in 2021?

Recently, mortgage rates have risen sharply and crossed 3% – a level we haven’t seen since last summer. Even with this dramatic increase, rates are near or still below the levels many experts expected mortgage rates to be at in 2021.

How we deal with coronavirus, and its impact on the economy, will greatly impact rates. If spending increases, from the government and consumers, that’s likely to drive inflation higher. And higher inflation usually leads to rising mortgage rates. 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

Following the recent flurry of activity with mortgage rates, many experts are predicting mortgage rates will be calmer this month.

The economy is beginning to show signs of life and investors are expecting increased inflation. This has driven 10-year Treasury bond yields up, which is a key indicator for mortgage rates. But, the Federal Reserve has expressed a desire to keep rates low. Also, some in the industry believe that fears of inflation are somewhat overblown. So don’t expect to see a massive surge in rates this month.

This Week’s Mortgage Predictions

The current rise in mortgage rates is what we’d expect to see with the economy looking like it’s starting to recover. So this week’s mortgage rates forecast is for more of the same, but with only a potential for a moderate uptick.

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 Influencing Today’s Mortgage Rates

Your mortgage rate is based on a number of things. First off, your personal finances have a big influence. A higher credit score or making a bigger down payment will help you qualify for a better rate. However, not everything is in your control, many larger economic factors play a role as well:

  • Condition of the economy
  • Federal Reserve policies
  • Government and consumer spending
  • 10-year U.S. Treasury yields
  • Rate of inflation
  • Individual circumstances: Loan-to-value ratio, credit history, and type of mortgage

How to Get the Best Mortgage Rate

As you work to secure the absolute best mortgage interest rate you should focus on three considerations: Credit score, loan-to-value ratio (LTV), and debt-to-income ratio (DTI).

To get the lowest mortgage rate, it’s best to have a credit score between 700 to 800. Having a credit score above 800 is nice, but will likely have no major impact on your rate.

How much debt you have will affect not only the price of the house you can afford, but also your mortgage rate. The maximum DTI for most mortgages is 43%. That means, on a $3000 monthly salary you’d be allowed to have up to $1,290 in monthly bills. To qualify for the lowest mortgage rate, aim for a DTI ratio of 28% or less.

Banks provide the most substantial mortgage rate reductions to borrowers that are seen as less risky. One surefire way to signal you’re more likely to make your monthly payments is to make a larger 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, there as been a spike in mortgage rates. 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.

There is still a severe shortage of homes for sale. So as we enter peak buying season, expect to continue seeing homes sell quickly for above the asking price. Those trends can make it can be a frustrating market for buyers.

How We Got These Rates

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

National lenders provide this mortgage rate information to Bankrate.com. 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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