Mortgage Interest Rates Today, April 28, 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 shrank. We also saw an upward trend in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

Looking at Today’s Mortgage Refinance Rates

If you’re in the market for a 15-year fixed-rate refinance, know that those nationwide rate averages not change. However, we did see a downturn in rates for 30-year fixed refinance loans . Shorter term, 10-year fixed-rate refinance mortgages made gains.

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

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

The median interest rate for a standard, 30-year, fixed mortgage is 3.11%, which is unchanged from the previous week.

You can use NextAdvisor’s home loan calculator to work out what your monthly payments would be and see how much you’ll save if you make extra payments. The mortgage calculator can also show you how much 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 2.40%, which is a decrease of 3 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. But, 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 3.26%, which is a rise of 6 basis points from the same time last week.

An adjustable-rate mortgage is ideal for households who will refinance or sell before the rate changes. If that’s not the case, their interest rates could end up being noticeably 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 payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

Recent Mortgage Rate Movement

To see where mortgage rates are headed, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at mortgage rate history, we’re in the middle of a period of unprecedented low rates. 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 fixed3.11%3.11%N/C
15-year fixed2.40%2.43%-0.03
30-year jumbo mortgage rate3.12%3.12%N/C
30-year mortgage refinance rate3.16%3.17%-0.01

Rates as of April 28, 2021.

There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things including inflation and even the unemployment rate. When you see inflation increasing, that usually means mortgage rates are about to climb higher. On the other hand, lower inflation typically accompanies lower mortgage rates. With higher inflation, the dollar becomes less valuable. This scenario pushes buyers away from mortgage-backed securities, which leads to price decreases and the need for increasing yields. And higher yields require borrowers to pay higher interest rates.

A strong economy has historically increased demand for homes. When more homes are sold, the demand for mortgages also increases, which can cause rates to go up. But the flip side is also true: A drop in demand for mortgages could signal a coming downturn in mortgage rates.

What Is in the Future for Mortgage Rates?

In February, we saw mortgage interest rates gain steam, moving well above their previous all-time lows to over 3%. However, rates are still near all-time lows, which is great news for borrowers. And for 2021, some experts predict mortgage rates won’t go much higher. Although the possibility for future rates increases is there.

The direction rates go will depend on the economy. And effectively dealing with the impacts of the coronavirus pandemic is key to our economic recovery. If consumer and government spending increases, that’s likely to drive inflation higher. In this scenario, we’ll most likely see mortgage rates begin to climb upward. However, the Federal Reserve has expressed its desire to aid the recovery by keeping rates low beyond 2021. So you can expect to see 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 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.

What Impacts the Current Mortgage Rates?

Your mortgage rate depends on a number of things. First off, your personal finances have a big influence. Factors such as a higher credit score or having the ability to make a larger 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
  • Decisions made by the Federal Reserve
  • Government and consumer spending
  • 10-year U.S. Treasury yields
  • Inflation
  • Personal financial situation: Size of your down payment, credit history, and debt-to-income ratio

How to Get the Best Mortgage Rate

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

To get the lowest rate, you’ll need a credit score somewhere between 700-800. Having a credit score above 800 is nice, but will likely have a minimal impact on your rate.

Your debt will impact 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. But a DTI of 28% or less is more likely to get you a discount on your mortgage rate..

Banks offer the largest mortgage rate discounts to home buyers that are seen as less risky. A sizeable down payment is a sign to lenders that you have more skin in the game and are less likely to default on your loan. 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).

What to Know About Recent Rate Hikes

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, the same rates have increased to 3.09%.

The recent 0.44% increase in mortgage rates will affect your bottom line. The monthly payment on a $300,000 30-year mortgage is now $71 a month at the current interest rates. However, even though buyers will have to adjust their homebuying budgets, don’t expect it to turn into a buyer’s market anytime soon.

The demand for the exceptionally low number of homes on the market isn’t likely to be curtailed by the current mortgage rates, which are still historically low. 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 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 can change daily.

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

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