National mortgage rates were mostly higher than a week ago. 30-year fixed, 15-year fixed and jumbo loan rates have increased, while ARM 5/1 rates have fallen.
|term of the loan||Daily rate||Last week||Switch|
|30 year mortgage rate||3.28%||3.25%||+0.03|
|15-year mortgage rate||2.53%||2.50%||+0.03|
|5/1 ARM mortgage rate||3.07%||3.08%||-0.01|
|Giant 30-year mortgage rate||3.30%||3.26%||+0.04|
Prices exact as of April 6, 2021.
The rates shown above are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates available locally may vary.
This story has been reviewed by Bill McGuire. All pricing data is correct as of Tuesday April 6, 2021.
Today’s 30-year mortgage rate advances
The 30-year average fixed mortgage rate is 3.28%, up 3 basis points over the past seven days. A month ago, the average rate on a 30-year fixed-rate mortgage was lower, at 3.24%.
At the current average rate, you’ll pay principal and interest of $ 436.85 for every $ 100,000 you borrow. That’s $ 1.64 more than last week.
When to consider a 30-year fixed mortgage
Choosing the right mortgage is an important step in the home buying process, and you have a lot of options. There are several factors you need to consider, including your credit rating, income, down payment amount, budget, and financial goals.
Increase in 15-year fixed rate mortgages
The 15-year average fixed mortgage rate is 2.53%, up 3 basis points from the same period last week.
Monthly payments on a 15-year fixed rate mortgage at this rate will cost approximately $ 668 per $ 100,000 borrowed. This is obviously much higher than the monthly payment of a 30-year mortgage at this rate, but it has big advantages: you will save thousands of dollars over the life of the loan in total interest paid and you will build up capital. much faster. .
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5/1 ARM facilitates
The average rate on a 5/1 ARM is 3.07%, sliding 1 basis point from a week ago.
Variable rate mortgages, or ARMs, are home loans with a variable interest rate. In other words, the interest rate can change intermittently throughout the life of the loan, unlike fixed rate mortgages. These types of loans are the best for those who expect refinance or sell before the first or second adjustment. The rates could be much higher when the loan is first adjusted and afterwards.
Monthly payments on a 3.07% 5/1 ARM would cost about $ 425 for every $ 100,000 borrowed in the first five years, but could increase by several hundred dollars after that, depending on loan terms.
Jumbo Mortgage Trends on the Rise
The average jumbo mortgage rate today stands at 3.30%, an increase of 4 basis points from the same time last week. Last month, the 6th, the average jumbo mortgage rate was below 3.28%.
At the current average rate, you’ll pay a combined amount of $ 437.96 per month in principal and interest for every $ 100,000 you borrow. That’s an increase of $ 2.20 from what you would have paid last week.
Bottom Line: How Mortgage Rates Have Changed Over the Last Week
- 30-year fixed mortgage rate: 3.28%, compared to 3.25% last week, + 0.03
- 15-year fixed mortgage rate: 2.53%, compared to 2.50% last week, +0.03
- 5/1 ARM mortgage rate: 3.07%, compared to 3.08% last week, -0.01
- Jumbo mortgage rate: 3.30%, up from 3.26% last week, + 0.04
Mortgage rate movement forecast for this week (April 1-7)
Mortgage experts were divided on the destination of rates in the coming week (April 1-7). In response to Bankrate rate development survey, 46% said the rates would go up, 38% think they will stay the same and only 15% expect them to go down.
Ken H. Johnson, real estate economist for Atlantic University of Florida, expects rates to rise this week. Regarding rates, he said: “30-year mortgage rates will rise slightly this week. It appears that the firewall provided by foreign bank interests in 10-year US Treasuries has been destroyed, causing yields to rise. Currently, the 10-year is just above 1.7 percent. The spread between 10-year Treasury bills and 30-year mortgage rates is typically 170-190 basis points. Dividing the difference into the spread, a reasonable interim expectation for 30-year mortgage rates is 3.5%. This wait will lead to an increase in 30-year mortgage rates for the coming week. “
Are mortgage rates going up or down?
Mortgage rates have hovered around historic lows in recent months, but it’s almost impossible to predict where they’ll go from there. It all depends on the direction of the economy and the ability of public health officials to contain the coronavirus pandemic. The general consensus: If the economy continues to rebound and if drug companies are successful in developing a vaccine, the rates will rise. However, if the economy suffers setbacks from the pandemic, rates will remain low or even fall further.
Featured Lenders, April 6, 2021