Friday, June 25, 2021
As evident from the title, you might probably be thinking about why it is the right time to refinance? It’s because rates are falling. Compared to last week, the rates have reduced, indicating that borrowers can get a low rate after refinancing their mortgage. Nonetheless, the rates as of today are as follows:
- 30-year mortgage: 3.130% for purchase and 3.210% for refinance
- 15-year mortgage: 2.430% for purchase and 2.500% for refinance
- 5/1 ARM: 3.330% for purchase and 3.00% for refinance
- 30-year Jumbo Fixed Mortgage: 3.140% for purchase and 3.220% for refinance
What’s the Trendline?
Comparing with yesterday, there isn’t much difference in the interest rates. However, there is a significant disparity between the rates of last week.
Let’s see the difference in each of the mortgage products.
30-year Fixed Mortgages
There is no difference in the 30-year mortgage rate compared to yesterday. However, the rate declined by four basis points from last week.
This situation is explained by FEDs behavior. They intend to keep the borrowing rate low until the economy recovers from the pandemic situation. Therefore, the rates will rise in the near future.
Moreover, there was a hike in the Treasury bills, and it’s expected that the mortgage rate will follow the same trend. Since purchase rates are low, it’s the best time to buy your home. However, home prices are also rising due to unequal demand and supply, and inflation.
15-year Fixed Mortgages
Similarly, the rate is the same as yesterday. However, the rate is also the same compared to a week. The 15-year mortgage type shows stagnant behavior.
Most commonly, short term loans are popular with many individuals because it saves interest cost.
5/1 ARM Mortgage
The rate is the same compared to yesterday. But it rose by 13 basis points compared to last week. Typically, you have to make fixed payments for five years, after which you make monthly payments at the prevailing interest rate.
This type of loan shows an inclining trend, but you can still get it before it goes too high.
30-year Jumbo Fixed Mortgage
Comparing to last week, the rates have declined by around five basis points. Therefore, if you’re looking to get a jumbo loan, it’s the right time to get it.
Jumbo loans are loans that have an above-average principal amount. The loan amounts are generally higher, intending to purchase large properties.
The trendline shows a declining trend for now. However, rates won’t remain the same as per experts’ suggestion. FEDs are controlling the rates and keeping them low due to the pandemic.
In the near future, the rates are likely to take a spike. Additionally, the refinance rates have also shown insignificant changes. Therefore, if you’re looking to purchase or refinance houses, it’s the right time.
Get free customized quotes at the Rate Checker.