Daily Mortgage Rates Are Increasing

Dated: October 27 2021

Views: 122

October 23 & 24, 2021

Photo by CrossRoads Today

The interest rate on a 30-year fixed-rate mortgage finished the week averaging 3.541%, an increase from Monday. The average rates for both the 15-year fixed-rate mortgage and the 5/1 adjustable-rate mortgage also ended the week higher, moving up to 2.571% and 2.48% respectively.

Although rates seesawed during the week, the 30-year rate ended 0.106 percentage points above Monday’s rate. Compared to a month ago, the 30-year average is 0.218 percentage points higher.

Even though rates are trending higher, they are very low compared to previous years. Borrowers with strong credit should be able to lock in competitive rates and low monthly payments on intent on purchasing or refinance loans.

•             The latest rate on a 30-year fixed-rate mortgage is 3.541%.

•             The latest rate on a 15-year fixed-rate mortgage is 2.571%.

•             The latest rate on a 5/1 jumbo ARM is 2.48%.

•             The latest rate on a 7/1 conforming ARM is 3.438%.

•             The latest rate on a 10/1 conforming ARM is 4.013%.

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score — roughly the national average score — might pay if he or she applied for a home loan right now. Each day’s rates are based on the average rate 8,000 lenders offered to applicants the previous business day. Freddie Mac’s weekly rates will generally be lower, since they measure rates offered to borrowers with higher credit scores.

CURRENT MORTGAGE RATES: 30-YEAR FIXED-RATE MORTGAGE RATES

•             The 30-year rate is 3.541%.

•             That’s a one-day increase of 0.038 percentage points.

•             That’s a one-month increase of 0.218 percentage points.

Most borrowers will opt for the stability of a fixed-rate mortgage. Neither the interest rate nor the monthly payment will change throughout the term of the loan. The most popular term length is the 30-year loan. Its long payback time means your monthly payments will be relatively low. Compared to a shorter-term loan, however, the interest rate will be higher, so you’ll pay more interest over time.

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AVERAGE MORTGAGE RATES

Data based on US mortgage loans closed on Oct 21, 2021

15 YEAR FIXED CONVENTIONAL

•             Oct 21: 2.57%

•             Last Week: 2.53%

•             Change: 0.04%

30 YEAR FIXED CONVENTIONAL

•             Oct 21: 3.54%

•             Last Week: 3.47%

•             Change: 0.07%

7/1 ARM RATE

•             Oct 21: 3.44%

•             Last Week: 3.35%

•             Change: 0.09%

10/1 ARM RATE

•             Oct 21: 4.01%

•             Last Week: 3.82%

•             Change: 0.19%

Find your actual rate at Quicken Loans.

Click below to get started and see your rate today.

View Rates for October 23, 2021

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CURRENT MORTGAGE RATES: 15-YEAR FIXED-RATE MORTGAGE RATES

•             The 15-year rate is 2.571%.

•             That’s a one-day increase of 0.015 percentage points.

•             That’s a one-month increase of 0.144 percentage points.

Borrowers who opt for a 15-year fixed-rate loan are often attracted by its low interest rate compared to a longer-term loan and its shorter payback time. However, that short term length also means the monthly payments will be higher compared to an equivalent 30-year loan, so it may not be manageable for some borrowers.

CURRENT MORTGAGE RATES: 5/1 JUMBO ADJUSTABLE-RATE MORTGAGE RATES

•             The 5/1 ARM rate is 2.48%.

•             That’s unchanged from yesterday.

•             That’s a one-month increase of 0.287 percentage points.

Adjustable-rate mortgages will start off with a low, fixed interest rate that will eventually become adjustable, resetting at regular intervals. For example, the interest rate on a 5/1 adjustable-rate loan will be fixed for five years before starting to reset every year. Once the rate starts to adjust, it will react to market conditions and could result in higher interest rates.

CURRENT MORTGAGE RATES: VA, FHA AND JUMBO LOAN RATES

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

•             The rate on a 30-year FHA mortgage is 3.267%.

•             The rate on a 30-year VA mortgage is 3.306%.

•             The rate on a 30-year jumbo mortgage is 3.665%.

CURRENT MORTGAGE REFINANCE RATES

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

•             The refinance rate on a 30-year fixed-rate refinance is 3.664%.

•             The refinance rate on a 15-year fixed-rate refinance is 2.679%.

•             The refinance rate on a 5/1 jumbo ARM is 2.782%.

•             The refinance rate on a 7/1 conforming ARM is 3.961%.

•             The refinance rate on a 10/1 conforming ARM is 4.153%.

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AVERAGE MORTGAGE REFINANCE RATES

Data based on US mortgage loans closed on Oct 21, 2021

15 YEAR FIXED CONVENTIONAL

•             Oct 21: 2.68%

•             Last Week: 2.64%

•             Change: 0.04%

30 YEAR FIXED CONVENTIONAL

•             Oct 21: 3.66%

•             Last Week: 3.61%

•             Change: 0.05%

7/1 ARM RATE

•             Oct 21: 3.96%

•             Last Week: 3.88%

•             Change: 0.08%

10/1 ARM RATE

•             Oct 21: 4.15%

•             Last Week: 4.07%

•             Change: 0.08%

Find your actual rate at Quicken Loans.

Click below to get started and see your rate today.

View Rates for October 23, 2021

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WHERE ARE MORTGAGE RATES HEADING THIS YEAR?

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

In January 2021, rates briefly dropped to the lowest levels on record, but trended higher through the month and into February.

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

While mortgage rates are likely to rise this year, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates should stay near historically low levels through the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a favorable time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

•             The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March of 2020. The Fed announced plans to keep money moving through the economy by dropping the short-term Federal Fund interest rate to between 0% and 0.25%, which is as low as they go. The central bank also pledged to buy mortgage-backed securities and treasuries, propping up the housing finance market. The Fed has reaffirmed its commitment to these policies for the foreseeable future multiple times, most recently at a late January policy meeting.

•             The 10-year Treasury note. Mortgage rates move in lockstep with the yields on the government’s 10-year Treasury note. Yields dropped below 1% for the first time in March 2020 and have been slowly rising since then. Currently, yields have been hovering above 1% since the beginning of the year, pushing interest rates slightly higher. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.

Source:  CrossRoads Today - Leslie Cook

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Bobby Nies

If you are looking to Buy or Sell you want to make sure you are not just another number to your Realtor. Yes, it is a Sellers Market but if you are selling your home, you want to make sure you get the....

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