Thursday, August 24, 2021

Much to the dismay of homeowners, the mortgage rates are on the rise again. Since last week, the rates were going down daily until today, when most of the rates reverted to the same position as the last week. Therefore, the rates are completely the same since last week. Without any further delay, the rates for today are as follows:

·       30-year fixed mortgage rate: 3.050% for home purchase and 3.030% for refinance

·       15-year fixed mortgage rate: 2.350% for home purchase and 2.330% for refinance

·       5/1 ARM: 2.800% for home purchase and 2.730% for refinance

·       30-year fixed-rate jumbo mortgage rate: 3.070% for home purchase and 3.040% for refinance

What Is the Trendline of Mortgage Rates?

30-year fixed-rate mortgages

Since yesterday, there has been an increase of four basis points. However, the rates are at the same level since last week, showing no change. The reason for this increase is due to FEDs keeping control over their bonds purchase which keeps the rates in one place. Moreover, the cancellation of the Jackson Hole economic policy program due to COVID led to a slowdown and uncertainty in the economy.

As a result, the mortgage rates are reducing or remaining stagnant. On the other hand, there has been an increase of one basis point in refinance rates since last week. Under the given circumstances, the rates will rise because the sudden jump since yesterday gives expectations of high rates.

15-year fixed-rate mortgages

Since yesterday, there has been a sudden increase of four basis points. Similarly, the rates are up by four basis points since last week. Alternatively, the refinance rates are also up by five basis points since last week. 15-year mortgage rates are quickly pacing up and it’s better to take any action regarding your mortgage before it’s too late.

5/1 ARM

5/1 ARMs rates are stagnant for quite some time now. Therefore, it’s ideal to invest in them at low rates if you plan on refinancing within the fixed term of the mortgage.

30-year fixed-rate jumbo

The trend for 30-year jumbo is similar to the typical 30-year mortgage. Since yesterday, the rates have gone up by five basis points, while the rates are at the same level now as they were last week.

Final Verdict

After witnessing a sudden jump in the mortgage rate, the rates might seem to go up in the near future. While it’s early to say anything about the rates’ direction, it’s still an ideal opportunity to refinance before the rates rise again.

Therefore, if you have the option to refinance, you can check for quotes at The Rate Checker.