Friday, June 4, 2021

As the title suggests, the rates have really gone up compared to last week, but they are almost unchanged compared to yesterday. Moreover, we saw a minute or no change in the mortgage rates for different types of loans throughout the week. Such behavior suggests that the housing market is stagnant. Nonetheless, the following are the rates as of today:

• 30-year fixed mortgage: 3.100% for home purchase and 3.160% for refinance
• 15-year fixed mortgage: 2.370% for home purchase and 2.420% for refinance
• 5/1 ARM mortgage: 3.160% for home purchase and 3.010% for refinance            
• 30-year fixed Jumbo mortgage: 3.120% for home purchase and 3.170% for refinance

These rates are from the daily source of the Bank rate, which conducts a national survey, and its rates are based upon the average of top banks and thrifts across the state. There may be slight differences in rates of various other surveyors like Freddie & Mac, but the difference is very nominal. 

What Is the Trendline of Different Mortgage Rates?

30-year fixed mortgage

Compared to yesterday, there has been no difference in the rates. However, there is an increase of two basis points from last week. Moreover, the rate is higher by three basis points from last year. As per a loan calculator, you’ll have to pay $1.09 more than last week. Today’s rate suggests that the rates are projected to rise in the near future. 

As a result, individuals looking to close a mortgage loan at a low rate should consider doing it now. 

15-year fixed mortgage

Coincidentally, there has been no change in the rates of a 15-year mortgage compared to yesterday or last week. They have been totally the same. While these loans may sound expensive, they have some edge over 30-year term mortgages. You can quickly pay off your mortgage and get relief from your debt. 

In a 30-year mortgage, your payment would be contributed to interest for the first few years, while that’s not the case with a 15-year time mortgage. Moreover, you’ll also build home equity at a faster rate with a 15-year term mortgage. 

5/1 ARM mortgage

Similar to a 30-year mortgage, the rates for a 5/1 ARM are also increasing at the same rate. However, there has been an increase of two basis points compared to last week. According to the loan calculator, you’ll have to pay $430 for each $100,000 you borrow at the current rate.

Jumbo mortgage

This mortgage loan shows the exact same trend compared to a 30-year term. It shows an increase of two basis points compared to last week and a similar increase of three basis points compared to last month. 

Endnote

For this week, the rates have slightly risen, but they are still under 3%. The reason behind the slight increase is high inflation during the period, as per the data released by the Feds. Moreover, the rates saw an increase due to the future job reports in the market. So while the rates are still low, the borrowers aren’t really concerned about the rates right now. 

The main issue that worries most borrowers is the rising home prices and inflation. The home prices are accelerating, and it may make purchasing properties unaffordable to many borrowers. Nonetheless, if you want to buy a property, you should visit the rate checker to get the best free customizable quotes. Also, you can get the complete breakdown of payments for your mortgage at the rate checker.