Mortgage Rates Today Are Collapsing | April 1, 2021


Average mortgage rates today are slightly lower than yesterday for most loan categories. The rates on a 30-year fixed-rate purchase loan are down 0.030 percentage points to 2.617%. Loan refinance rates are also lower for the most part. The exceptions to the downtrend are the 7/1 and 10/1 adjustable rate mortgages, both of which are slightly higher today.

Many borrowers interested in buying a home or refinancing a mortgage can find attractive rates and guarantee a low monthly payment.

  • The latest rate on a 30 year fixed rate mortgage is 3.617%.
  • The last rate for a 15 year fixed rate mortgage is 2.651%.
  • The latest rate on a Jumbo ARM 5/1 is 2.97%.
  • The latest rate on a 7/1 compliant ARM is 4.643%.
  • The latest rate on a 10/1 compliant ARM is 4.743%.

30-year fixed mortgage rates today

  • The 30-year rate is 3.617%.
  • It’s a day offold by 0.03 percentage point.
  • It’s a month to augment by 0.263 percentage point.

With a 30-year fixed rate mortgage, your interest rate and monthly payments will stay the same for the life of the loan. The mortgage will be paid off in 360 months, unless you pay more than you need to, refinance the loan, or sell the house.

Compared to a short term loan like a 15 year, the interest rate on a 30 year mortgage will be higher. The monthly payments will however be lower since you repay the loan over a longer period. On the other hand, as you pay higher interest over a longer period of time, you will pay more overall interest.

Most home loan borrowers choose a 30-year fixed rate mortgage because of the low monthly payments.

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Data based on U.S. mortgages closed March 31, 2021

Type of loan March, 31st Last week Switch
Conventional Fixed 15 Years 2.65% 2.64% 0.01%
Conventional Fixed 30 Years 3.62% 3.57% 0.05%
ARM rate 7/1 4.64% 4.36% 0.28%
ARM rate 10/1 4.74% 4.55% 0.19%

Your actual rate may vary

15-year fixed mortgage rates today

  • The 15-year rate is 2.651%.
  • It’s a day offold by 0.034 percentage point.
  • It’s a month infold 0.16 percentage point.

The interest rate and monthly payment on a 15-year fixed-rate loan will remain the same for the duration of the mortgage. The loan will be repaid in 180 months, unless you pay extra, refinance the loan, or sell the house.

A 15-year loan will have a lower interest rate than a 30-year loan, but the monthly payments will be higher because you pay off the mortgage in half the time. On the plus side, because you are paying a lower rate over a shorter term, you will save overall interest with a shorter term loan.

Although they have higher monthly payments, some borrowers may find a 15-year mortgage attractive because they will pay off the loan faster while paying less interest.

Jumbo 5/1 Variable Rate Mortgage Rates Today

  • The ARM 5/1 rate is 2.97%.
  • It’s a day decrease by 0.017 percentage point.
  • It’s a month offold by 0.043 percentage point.

A variable rate mortgage will actually have a fixed rate for the first few years of the loan. After the fixed rate period ends, your rate will be reset once a year. As a result, the monthly payment on an ARM will be fixed at first, but will then change based on any change in the interest rate.

A 5/1 adjustable rate loan, for example, will have a fixed rate for the first five years of the mortgage, then a variable rate each year thereafter. Other common variable rate loan terms are an ARM 7/1 and an ARM 10/1. MRAs have a total duration of 360 months.

The initial rate on an ARM 5/1 will be among the lowest in the mortgage market, making it attractive to borrowers who do not plan to stay in the home beyond five years. However, if they decide to stay in the house after the rate becomes adjustable, they should be aware that it could increase at some point in the future.

Current rates for VA, FHA and jumbo loans

The average rates for FHA, VA and jumbo loans are:

  • The rate for a 30-year FHA mortgage is 3.381%.
  • The rate for a 30-year VA mortgage is 3.464%.
  • The rate for a 30-year jumbo mortgage is 3.78%.

Current mortgage refinancing rates

The average rates for 30-year, 15-year and 5/1 jumbo ARM loans are:

  • The refinance rate on a 30 year fixed rate refinance is 3.902%.
  • The refinance rate on a 15 year fixed rate refinance is 2.972%.
  • The refinancing rate on a Jumbo ARM 5/1 is 3.508%.
  • The refinancing rate on a 7/1 compliant ARM is 4.901%.
  • The refinancing rate on a 10/1 compliant ARM is 5.167%.
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Data based on U.S. mortgages closed March 31, 2021

Type of loan March, 31st Last week Switch
Conventional Fixed 15 Years 2.97% 2.97% 0.0%
Conventional Fixed 30 Years 3.9% 3.86% 0.04%
ARM rate 7/1 4.9% 4.63% 0.27%
ARM rate 10/1 5.17% 4.92% 0.25%

Your actual rate may vary

Where Are Mortgage Rates Going This Year?

Mortgage rates fell through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people have bought homes that they might not have been able to afford if the rates were higher.

In January 2021, rates briefly fell to all-time low levels, but tended to rise throughout the month and into February.

Looking ahead, experts believe that interest rates will rise further in 2021, but modestly. Factors that could influence the rates include how quickly COVID-19 vaccines are distributed and when lawmakers can agree on another cost-effective relief package. More vaccinations and government stimulus could lead to improved economic conditions, which would increase rates.

While mortgage rates are likely to rise this year, experts say the increase will not happen overnight and will not be a dramatic jump. Rates are expected to stay near their historically low levels throughout the first half of the year, rising slightly later in the year. Even with rates rising, this will still be a good time to finance a new home or refinance.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to move money through the economy by lowering the Federal Fund’s short-term interest rate between 0% and 0.25%, which is as low as they go. The central bank has also committed to buying mortgage-backed securities and treasury bills, thereby supporting the housing finance market. The Fed has reaffirmed its commitment to these policies for the foreseeable future on several occasions, most recently at a policy meeting in late January.
  • The 10-year Treasury note. Mortgage rates move at the same pace as the yields on 10-year government treasury bills. Yields fell below 1% for the first time in March and have slowly risen since then. Currently, yields have hovered above 1% year-to-date, pushing interest rates up slightly. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The economy in the broad sense. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels hit historic highs early last year and have yet to recover. GDP has also been affected, and although it has rebounded somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags that can lower your credit score. The borrowers with the highest credit scores will get the best rates, so it’s essential to check your credit report before you begin the home search process. Taking action to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually results in a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the house.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who is offering the lowest interest rate. Also consider the different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

Also take the time to learn about the different types of loans. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a conventional 30-year mortgage. Compare everyone’s costs to see which one best suits your needs and financial situation. Government loans – such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you’ve found the right rate, the right loan product, and the lender will help ensure that your mortgage rate doesn’t increase until the loan closes.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for which the most recent rates are available. Today we are posting the rates for Wednesday March 31st. Our rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people contributing 20% ​​and include discount points.

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