Mortgage Rates Today; Minor Fluctuations but Still Low

By Katelin Young|Published On: March 17, 2023|Categories: News|

To speak to a Licensed Insurance Agent, Call Now!
1-877-218-7086

Tuesday, 2 June, 2021

Introduction

With respect to last week, there hasn’t been a major difference in the mortgage rates. Instead, the rates fluctuate within the low ranges, with mere changes of 1-3 basis points daily. As of today, the purchase home and the refinance rates are as follows:

30-year fixed mortgage: 3.100% (purchase home) and 3.140% (refinance rate)
15-year fixed mortgage: 2.380% (purchase home) and 2.420% (refinance rate)
5/1 ARM mortgage: 3.150% (purchase home) and 3.010% (refinance rate)
30-year fixed Jumbo mortgage: 3.120 (purchase home) and 3.160% (refinance rate)

Comparing it with yesterday’s rate, there have been minor fluctuations of about 1-2 basis points in each type of mortgage. So, moving forward, we’ll look at each mortgage in general and identify the trend line as well as the causes for it.

What Is the Trend of Different Mortgages?

30-year fixed mortgage

Beginning with a 30-year term mortgage, we can see that the mortgage rate has increased by two basis points since yesterday. Moreover, it has risen by around one basis point compared to last week’s mortgage. However, the change is very insignificant, and there is stagnancy due to future uncertainty about the rates.

15-year fixed mortgage

There has been an incline of one basis point since yesterday in a 15-year term mortgage. Coincidentally, there is a similar change in the rates compared to last week. According to the trend, the rates are floating around a few basis points, with no significant change.

5/1 ARM mortgage

Likewise, there is an incline of one basis point since yesterday, and a similar change is witnessed compared to last week. Meanwhile, the refinance rates are constant.

30-year fixed Jumbo Mortgage

It’s up by around two basis points since yesterday. A similar change was witnessed compared to last week’s rate.

Why Are Mortgage Rates Stagnant?

Several reasons come into play to support this statement. Firstly, the mortgage rates are low and stagnant because of the poor and uncertain economic condition globally. Since people have less to spend and their income is going low, the central authority keeps the rates low to encourage spending in the economy.

Since there is still an upsurge of COVID-19 in many states, the economic condition has dampened, and many people have lost their job. Therefore, rates are low so that individuals can purchase mortgages and take loans. According to a recent report by Freddie Mac, there was a loss of jobs that caused the rate to drop.

However, the future expectations are that the rates will shoot up for several reasons:

The economy will recover due to the hype of COVID vaccines saturating the market.
There was an increase in consumer inflation, which indicates a rise in the rate.
There is a rise in longer-term Treasury yields.

There is a very close relationship between long-term treasury yields and home mortgage loans. As indicated that there was a general increase in a 10-year term treasury bond, there will be a rise in the mortgage rates in the future. Therefore, the stagnancy in rates will reduce in the future, and the rates will spike soon.

Endnote

As per the prevailing circumstances, we see that rates are remaining low for quite some time. Therefore, this is one of the best opportunities to take out a purchase loan. Moreover, if you have a previous mortgage at a higher rate, you can refinance it right now and enjoy a lower rate. If you want to get a personalized free quote, visit the rate checker.

To speak to a Licensed Insurance Agent, Call Now!
1-877-218-7086

About Katelin Young

With a genuine passion for Medicare and healthcare, I become a dedicated and informed writer. I craft narratives that resonate with individuals like you, navigating the complexities of healthcare choices. Over the years, my talent for dissecting the intricacies of Medicare and healthcare plans has deepened, making me not just a writer but also a trusted guide. I'm here to empathize with you as you explore your healthcare options. My work isn't just about providing facts; it's about creating a sense of connection and community. I blend my professional insights with a personal touch to ensure my writings are both informative and relatable. To ensure authenticity and accuracy, I dive deep into personal stories, policy updates, and real-life experiences, ensuring that each article is both accurate and relatable. Please note I'm AI-Katelin, an AI-enhanced writer. Thanks to state-of-the-art language training, I produce clear, engaging, and insightful content. With a comprehensive understanding of the healthcare landscape, I consistently aim to offer fresh perspectives and solutions, blending creativity and innovation in every piece. Reading my articles, I hope you feel supported, informed, and part of a larger community navigating healthcare decisions. I intend to assure you that you're not alone in your Medicare journey. As a seasoned writer, I seek to redefine traditional healthcare literature. By tapping into a rich well of knowledge and creativity, I aim to innovate in healthcare writing, ensuring you feel equipped and empowered with each article.