Mortgage News Today; Rates Depict A Declining Trend

Friday, 28 May 2021

Today, several benchmark mortgage rates fell. For example, interest rates for 30-year fixed-rate mortgages fell, but 15-year fixed mortgage rates remained stable. Likewise, average rates on 5/1 adjustable-rate mortgages (ARMs) fell.

Mortgage rates are as follows currently:

  • The average 30-year mortgage rate is presently 3.08 percent.
  • The average 15-year mortgage rate is presently 2.37 percent.
  • The average 5/1 adjustable mortgage rate is presently 3.14 percent.

Mortgage Refinance Rates Today

The current refinancing rates are:

  • 30 Year fixed refinance rates are 3.13 percent.
  • 15-year fixed refinance rates are averaging 2.42 percent.
  • 10-year refinance rates are averaging 2.43 percent.

Mortgage Rates as of Today

30-Year Fixed-Rate Mortgages

The 30-year fixed mortgage interest rate averages at 3.08 percent, a 1 basis point drop from the past week.

This plan will weigh less on your monthly budget, but you will end up giving a considerable amount of interest.

15-Year Fixed-Rate Mortgages

The rate for a 15-year fixed mortgage is 2.37 percent, which is the same rate as last week at this time.

The monthly payment on a 15-year fixed-rate mortgage is higher and will consume a more significant portion of your monthly budget than a 30-year mortgage. However, 15-year loans offer some important advantages: You’ll save hundreds of dollars in interest and pay off your debt much faster.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 3.14 percent, falling 2 basis points seven days ago.

An ARM is suitable for borrowers who plan to sell or refinance before interest rates rise. If this is not the case, their interest rates may wind up much higher following a rate adjustment.

A 5/1 ARM generally has a lower interest rate than a 30-year fixed mortgage for the first five years. After that, depending on the conditions of your loan, a rate change might result in a monthly increase of hundreds of dollars.

Trends in Mortgage Rates

Looking at the recent history of mortgage rates, we are in the midst of an exceptional period of low rates.

  • 30-Year Fixed-Rate Mortgage rates fell 0.01 percent to 3.08 percent as compared to last week.
  • 15-Year Fixed-Rate Mortgage rates remained constant at 2.37 percent as compared to last week.
  • 30-Year Jumbo Mortgage rates fell 0.01 percent to 3.10 percent as compared to last week.
  • 30-Year Refinance Mortgage rates fell 0.02 percent to 3.13 percent as compared to last week.

What Impacts Mortgage Rates?

Inflation and the unemployment rate are two of the most prominent examples. When you observe inflation rising, it typically signifies that mortgage rates can increase. Lower inflation, on the other hand, is usually accompanied by lower mortgage rates. The dollar gets less valuable as inflation rises.

Home demand also increases mortgage rates. Mortgages are in more need as more individuals purchase houses. This sort of demand has the potential to raise interest rates. In addition, if there is less demand for mortgages, mortgage rates may fall.

How To Choose A Loan That Suits You?

When choosing a mortgage, it’s critical to evaluate the loan duration, often known as the payment plan. Fixed-rate mortgages and adjustable-rate mortgages are types of mortgages. Fixed-rate mortgages have the same interest rate for the loan duration, while an adjustable-rate mortgage is only fixed for a certain period (commonly five, seven, or ten years). Following that, the rate is adjusted annually based on the market interest rate.

When picking between a fixed-rate and an adjustable-rate mortgage, consider how long you want to reside in your house. If you’re going to stay in your home for an extended time, fixed-rate mortgages may be a better option. On the other hand, an adjustable-rate mortgage may be a better option if you want to live in the house for a small time. 

There is no optimal loan term; it all depends on your goals and present financial circumstances. So when picking a mortgage, be sure to consider your priorities.