Mortgage interest rates have been mixed this week. See below for a breakdown of how the different types of loans evolved.
|30 years fixed||3.26%||3.25%||+0.01|
|Fixed over 15 years||2.50%||2.50%||NC|
|30-year fixed jumbo||3.28%||3.26%||+0.02|
Prices as of April 7, 2021.
The prices shown here are market averages based on the hypotheses presented here. Actual rates available on the site may vary.
This story has been reviewed by editor-in-chief Bill McGuire. All pricing data is correct as of Wednesday April 7, 2021 at 12:30 p.m.
30-Year Fixed Rate Mortgages Rise
The average 30-year benchmark fixed mortgage rate is 3.26%, up 1 basis point from a week ago. This time, a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.20%.
At the current average rate, you’ll pay $ 435.75 per month in principal and interest for every $ 100,000 you borrow. That’s $ 0.55 more than last week.
The average refinancing rate for a 30-year fixed rate mortgage is 3.34%, an increase of 2 basis points over the past week. This time last month, the average rate on a 30-year mortgage was 3.26%.
15-year fixed mortgage stay
The average 15-year benchmark fixed mortgage rate is 2.50%, unchanged over the past seven days.
Monthly payments on a 15-year fixed mortgage at this rate will cost $ 667 per $ 100,000 borrowed. This can lower your monthly budget compared to a 30-year mortgage, but it has big benefits – you’ll save thousands of dollars over the life of the loan in total interest paid, and build equity much faster.
The 5/1 variable rate mortgage remains in place
The average rate on a 5/1 ARM is 3.08%, unchanged over the past week.
Variable rate mortgages, or ARMs, are home loans with a variable interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed rate mortgages. These types of loans are best for those hoping to sell or refinance before the first or second adjustment. Rates can be significantly higher when the loan is first adjusted, and afterwards.
Monthly payments on a 5/1 at 3.08% ARM would cost about $ 426 for every $ 100,000 borrowed in the first five years, but could increase by hundreds of dollars thereafter, depending on loan terms.
Jumbo Loan Interest Rates Rise
The current average jumbo mortgage rate is 3.28%, up 2 basis points from last week. This time, a month ago, the average rate on a jumbo mortgage was lower, at 3.24%.
At today’s average rate, you’ll pay $ 436.85 per month in principal and interest for every $ 100,000 borrowed. That’s an increase of $ 1.09 from what you would have paid last week.
In summary: the evolution of mortgage rates
- 30-year fixed mortgage rate: 3.26%, compared to 3.25% last week, +0.01
- 15-year fixed mortgage rate: 2.50%, same as last week
- 5/1 ARM mortgage rate: 3.08%, same as last week
- Jumbo mortgage rate: 3.28%, up from 3.26% last week, +0.02
Mortgage rate trend forecast for the coming week (April 1-7, 2021)
Mortgage experts were divided on the destination of rates in the coming week (April 1-7). In response to Bankrate Weekly Survey, 46% said the rates would go up, 38% think they will stay the same and only 15% expect them to go down.
Logan Mohtashami, Housing Analyst for Housing, estimates that rates will drop over the next week. “Lower. The 10-year yield is in a tug-of-war between 1.64% and 1.75%. Today, I think bond yields are still too low based on our economic data. However, in the short term, we can’t go over 1.75%. We should see lower returns if this continues. Keep an eye out for this level and any good news about the vaccine. Over time, we should see a downturn. true correction of more than 10% of stocks. This is your best thesis for lower returns, because it is not economic data at all. “
How Do Mortgage Rates Affect Buyers?
In a real estate boom, low mortgage rates can have advantages and disadvantages for borrowers. One advantage: low rates give borrowers more purchasing power. A loan of $ 300,000 at 4% equals a monthly payment of $ 1,432. If the rates drop to 3 percent, the payment plunges to $ 1,265.
One downside, however, is that a significant drop in mortgage rates can help drive up house prices. Indeed, home values have increased in recent months.
Here’s one way to look at the offsetting effects of soaring house prices and falling mortgage rates. Suppose you decided not to buy a $ 300,000 home a year ago when the 30-year mortgage rate was around 3.75%. Your 20% down payment would have been $ 60,000 and your monthly payment would have been $ 1,111.
Today the price of the same house has risen to $ 335,000, but you can get a 30-year loan at 3%. As a result, your monthly payment only increases slightly, to $ 1130. However, you will need to find an additional $ 7,000 to make a 20% down payment.
Featured lenders of the day, April 7, 2021