Looking at mortgage rates today, a variety of notable rates have gone up. The 30-year and 15-year fixed mortgage averages both increased. We also did not see an adjustment in the average rate of adjustable rate mortgages (ARM) 5/1.
The averages for fixed 30-year, fixed 15-year and 5/1 MRAs are:
What this means for borrowers:
Historically low interest rates continue to be offered to highly qualified borrowers. But for many buyers, getting a good rate doesn’t make it easier to find a home. There aren’t many houses for sale, so competition has driven up house prices. So, if you are shopping for a home, be prepared to move quickly because the few homes on the market are moving fast.
Current mortgage refinancing rates
Refinancing has become a little more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates rise. Shorter-term 10-year fixed rate refinance mortgages also posted gains.
The refinancing averages for 30-year, 15-year and 10-year loans are:
Find the current mortgage rates for today.
30-year fixed mortgage interest rates
The median interest rate for a 30-year standard fixed-rate mortgage is 3.19%, which is an 8 basis point increase from seven days ago.
You can use NextAdvisor’s mortgage payment calculator to get an idea of ââyour monthly payments and calculate what you’ll save with additional payments. The mortgage calculator can also tell you how much interest you will pay over the life of the loan.
15-year mortgage interest rates
The median rate for a 15-year fixed-rate mortgage is 2.43%, which is an increase of 5 basis points from seven days ago.
The monthly payment for a 15 year fixed rate mortgage will be much higher. Thus, finding room in your budget for the monthly payment of a 30-year loan would be less difficult. However, 15-year loans have huge advantages: you’ll save thousands of dollars in interest and pay off your loan much sooner.
Variable rate mortgage rates 5/1
A 5/1 ARM has an average rate of 2.79%, the same rate as at the same time last week.
An ARM is ideal for households that will sell or refinance before rates change. If not, their interest rates could end up being significantly higher after a rate adjustment.
For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that depending on how your loan rate is adjusted, your payment can increase dramatically.
Mortgage interest rate movement
In addition to your personal finances, general trends in mortgage rates are much more studied. The state of the economy, housing demand and government policies can all play a role.
The Federal Reserve Bank can also influence rates, although it does not set mortgage interest rates directly. Currently, the Federal Reserve buys billions of dollars in mortgage backed securities (MBS) every month. This increased demand for MBS has helped keep rates from rising. However, as the economy recovers, the Federal Reserve may announce plans to reduce the amount of securities it purchases, which would allow rates to rise.
How are our mortgage interest rates calculated
To get a feel for current mortgage rate trends, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The Daily Rate Survey focuses on mortgages where the borrower has a credit score of 740+, equity of 20% or more, and the house is owner occupied.
The table below compares average rates today to what they were a week ago and is based on information provided to Bankrate by lenders across the country:
Prices exact as of October 13, 2021.
Now is the right time to lock in my mortgage rate?
It is impossible to know in which direction mortgage rates will go overnight. This is why a mortgage rate foreclosure 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 freeze will only last for a specified period of time, typically 30 to 60 days. If you have a problem closing and it looks like your rate foreclosure will expire, you should contact your lender. It may offer an extension of the lock, however, you may have to pay a fee for this privilege.
What is the future of mortgage rates?
In recent months, mortgage rates have remained stable at around 3%. In the absence of any policy change from the Federal Reserve, it looks like this rate trend will continue. But there are indications that changes could be announced this fall, which could push rates higher, closer to the levels many experts predicted they would reach in 2021.
What happens with rates will depend on the economy. A growing economy usually goes hand in hand with rising mortgage rates. If consumer and government spending increases, it will likely lead to higher inflation. However, the Federal Reserve believes that the inflation we are seeing is only temporary, and rates have therefore remained low. But despite the potential for rising inflation, mortgage rates are expected to stay low this year. One of the reasons for this: the Federal Reserve believes that low rates will help our economic recovery. It is therefore likely to take political decisions in favor of keeping rates low.
Mortgage rate forecasts 2021
Rates stabilized after a period of fluctuation in the first few months of the year. They are expected to remain relatively stable over the next few weeks, but could start to increase towards the end of the year.
The economy still has a bumpy road to return to its pre-pandemic level. So if we see mortgage rate increases this year, they will likely happen slowly over time.
How to get the lowest mortgage rate
Comparing mortgage offers is a great way to get the lowest rate.
Your mortgage rate depends on a number of factors that lenders take into account when assessing the likelihood of you paying off your mortgage. Your credit score affects your mortgage rate. And your loan to value ratio (LTV) is also important, so having a larger down payment is better for your interest rate.
But banks will view your situation differently. So you can provide the same documentation to three different mortgage providers and find that none of the mortgage rates and fees offered to you are the same.