Current Mortgage Interest Rates, April 7, 2021 | Important Rate Goes Up

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

While an important mortgage rate inched upward, today rates went in a mixture of directions. Interest rates on 30-year, fixed-rate mortgages grew, while 15-year fixed mortgage rates were steady. We also saw no variation in the average rate of 5/1 adjustable-rate mortgages (ARM).

Take a look at today’s rates:

Today’s Mortgage Refinance Rates

In a surprising move, the national average rate for a 30-year fixed refinance made gains, while 15-year fixed-rate refinances decreased. If you’ve been considering a 10-year refinance loan, just know average rates declined.

Today’s refinance rates are:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.26%, which is a growth of 1 basis point from last week.

You can use NextAdvisor’s home loan calculator to get an idea of what your monthly payments will 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 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 2.50%, which is the same rate compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, 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 earlier.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.08%, the same rate compared to a week ago.

An adjustable-rate mortgage 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 significantly 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 moving 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 an exceptionally low rate environment. 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 nation:

Current average mortgage interest rates
Loan typeInterest rateA week agoChange
30-year fixed rate3.26%3.25%+0.01
15-year fixed rate2.50%2.50%N/C
30-year jumbo mortgage rate3.28%3.26%+0.02
30-year mortgage refinance rate3.34%3.32%+0.02

Updated on April 7, 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.

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’s in Store for Mortgage Rates in 2021

In February, mortgage rates increased, 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 should boost our economic recovery. If spending increases, from the government and consumers, that’s likely to drive inflation higher. And higher inflation usually leads to rising mortgage rates. But in spite of the potential for rising inflation, it’s unlikely that we’ll see skyrocketing mortgage rates in 2021. One reason for this: the Federal Reserve believes that low interest rates will help the economy rebound. So it’s likely to make policy decisions in favor of keeping rates low.

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 Influencing Today’s Mortgage Rates

Everything from the direction of the economy to your individual financial situation can affect mortgage rates. Not only that, but the type of mortgage and the property itself also factor into the equation.

Here are a few factors that influence rates:

  • Overall health of the economy
  • Decisions made by the Federal Reserve
  • Spending in the private and public sectors
  • U.S. Treasury bond Yields
  • Inflation
  • Personal finances: Credit score, down payment, and debt-to-income ratio

How to Get the Lowest Mortgage Rate

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

These days, a credit score of 750 or above will help you secure the lowest rate. But, even a score 700 or higher can get you a worthwhile 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.

Having fewer debt payments can make it cheaper for you to buy a house. When you have fewer debt payments to make each month, it lowers your DTI. And a lower DTI will help you get a lower interest rate.

Mortgage providers give the largest mortgage rate reductions to borrowers that are seen as less risky. A bigger down payment is a signal 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).

How Rising Mortgage Rates Impact Home Buying

We started off 2021 with mortgage rates dipping to a record low of 2.65%. In the weeks since then, the average 30-year fixed rates have steadily marched all the way up 3.09%. This increase is in line with what many experts have predicted, but it has happened earlier in 2021 than anticipated.

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 bidding wars and rising prices. 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 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

Other NextAdvisor Mortgage Articles