Today’s mortgage rates: March 30, 2021

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The latest mortgage rates are higher than a month ago for most types of loans. Still, rates are historically low and offer many borrowers who want to buy a home or refinance their mortgage the option of getting a low monthly payment.

  • The last rate on a 30 year fixed rate mortgage is 3.575%.
  • The last rate on a 15 year fixed rate mortgage is 2.625%.
  • The latest rate on a Jumbo ARM 5/1 is 2.944%.
  • The latest rate on a 7/1 compliant ARM is 3.853%.
  • The latest rate on a 10/1 compliant ARM is 4.385%.

Current 30-year fixed mortgage rates

  • The 30-year rate is 3.575%.
  • It’s a day infold by 0.055 percentage point.
  • It’s a month to augment by 0.003 percentage point.

The 30-year fixed rate home loan is the most common type of home loan. The interest rate and monthly payment will remain the same for the duration of the loan. The mortgage will be paid off in 360 months, unless you pay more than the required amount, refinance the loan, or sell the house.

Compared to a shorter term loan like a 15 year mortgage, a 30 year mortgage will have a higher interest rate but a lower monthly payment. This is because you repay the loan amount over a longer period. However, since you pay a higher interest rate for twice as long, you will end up paying more interest overall.

The lower monthly payments make a 30-year mortgage the choice of three out of four borrowers.

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Data based on U.S. mortgages closed March 26, 2021

Type of loan March 26 Last week Switch
Conventional Fixed 15 Years 2.63% 2.65% 0.02%
Conventional Fixed 30 Years 3.58% 3.58% 0.0%
ARM rate 7/1 3.85% 4.76% 0.91%
ARM rate 10/1 4.39% 4.68% 0.29%

Your actual rate may vary

Current 15-year fixed mortgage rates

  • The 15-year rate is 2.625%.
  • It’s a day infold by 0.027 percentage point.
  • It’s a month infold by 0.021 percentage point.

A 15 year fixed rate mortgage will also have an interest rate and monthly payment that will not change during the life of the loan. The mortgage will be paid off in 180 months, unless you pay more than the minimum owed, refinance the loan, or sell the house.

The interest rate on a 15-year loan will be lower than on a 30-year loan, but the monthly payments will be higher because you pay it off in half the time. On the other hand, because you are paying a lower rate over a shorter period, you will pay less total interest than with a longer term loan of the same amount.

For borrowers who can afford higher monthly payments, a 15-year loan can be an attractive option if they want to pay off the loan faster, save on interest, or both.

Current 5/1 Jumbo Variable Rate Mortgage Rates

  • The ARM 5/1 rate is 2.953%.
  • It’s a day offold by 0.009 percentage point.
  • It’s a month decrease by 0.07 percentage point.

A variable rate mortgage will have a fixed rate for the first few years of the loan. Thereafter, the rate will be reset, usually once a year. The monthly payment will be fixed initially then will evolve according to the evolution of the rate.

For example, a 5/1 variable rate loan will have a fixed rate for the first five years of the mortgage. The rate will then change each year until the loan is paid off. The total duration is generally 30 years. Other common ARM loans include a 7/1 and a 10/1.

Usually, the starting interest rate for a 5/1 adjustable rate loan will be lower than for a 30 year fixed rate loan. The low initial rate may be meaningful for borrowers who do not plan to stay in the home beyond the fixed rate period. However, a borrower who decides to stay in their home beyond five years should be aware that the interest rate could rise at some point.

Current rates for VA, FHA and jumbo loans

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

  • The rate on a 30-year FHA mortgage is 3.3371%.
  • The rate for a 30-year VA mortgage is 3.465%.
  • The rate for a 30-year jumbo mortgage is 3.688%.

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 3.874%.
  • The refinance rate on a 15 year fixed rate refinance is 2.945%.
  • The refinancing rate on a Jumbo ARM 5/1 is 3.502%.
  • The refinancing rate on a 7/1 compliant ARM is 4.179%.
  • The refinancing rate on a 10/1 compliant ARM is 4.85%.
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Data based on U.S. mortgages closed March 26, 2021

Type of loan March 26 Last week Switch
Conventional Fixed 15 Years 2.95% 2.98% 0.03%
Conventional Fixed 30 Years 3.87% 3.87% 0.0%
ARM rate 7/1 4.18% 4.95% 0.77%
ARM rate 10/1 4.85% 4.97% 0.12%

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 Friday March 26th. 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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