Here Are Today’s Mortgage Rates, June 10, 2021 | Rates Fell

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What we’re seeing today is a handful of important mortgage rates have decreased. Both 30-year fixed and 15-year fixed mortgage rates dwindled. For variable rates, the 5/1 adjustable-rate mortgage (ARM) increased.

Mortgage rates currently 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 receded. Shorter term, 10-year fixed-rate refinance mortgages also shrank.

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

Here are mortgage rates for different styles of loan.

30-Year Fixed-Rate Mortgage Rates

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.08%, which is a decline of 2 basis points from last week.

You can use NextAdvisor’s mortgage loan calculator to get an idea of what your monthly payments will be and calculate what you’ll save with additional payments. The mortgage calculator can also show you the total interest you’ll pay over the life of the loan

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 2.36%, which is a decrease of 1 basis point from seven days 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 save thousands of dollars in interest and pay off your loan much faster.

5/1 Adjustable-Rate Mortgage Rates

A 5/1 ARM has an average rate of 3.24%, which is a climb of 9 basis points compared to a week ago.

An ARM is ideal for borrowers who will sell or refinance 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 depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

Mortgage Rate Trends

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 historical mortgage rates, we’re seeing low rates like never before. This table has current average rates based on information provided to Bankrate by lenders nationwide:

Current average mortgage interest rates
Loan typeInterest rateA week agoChange
30-year fixed rate3.08%3.10%-0.02
15-year fixed rate2.36%2.37%-0.01
30-year jumbo mortgage rate3.09%3.12%-0.03
30-year mortgage refinance rate3.14%3.16%-0.02

Updated on June 10, 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.

Should I Lock in My Mortgage Rate Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool, because it protects you if rates go up. And with interest rates so low right now, you should lock in your rate as soon as you can.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should talk with your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.

What Is in the Future for Mortgage Rates?

To start the year, mortgage rates rose sharply and crossed 3% for the first time since last summer. After this dramatic increase, we saw a decrease that brought rates back under 3%. With rates hovering around 3%, they are still near or below the levels many experts expected mortgage rates to be at in 2021.

The direction rates go will depend on the economy. And effectively dealing with the impacts of the coronavirus pandemic should boost our economic recovery. As the economy recovers, we should see inflation rise, which will push interest rates higher. But in spite of the potential for rising inflation, mortgage rates are likely to stay low this year. 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.

2021 Mortgage Rate Forecast

Mortgage rates have leveled off a bit after an up and down first few months of the year. Looking forward, they are likely to remain reasonably stable but could start to trend upward.

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.

How to Qualify for the Lowest Mortgage Rate

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

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

Your debt will affect not only what price range of house you can purchase, but also your interest rate. The maximum debt-to-income ratio (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. Although, having a DTI under 28% is more likely to get you a reduction in your interest rate..

Banks provide the most substantial mortgage rate reductions to borrowers that are deemed less risky. One surefire way to signal you’re more likely to make your monthly payments is to bring a bigger down payment to the closing table. 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).