Mortgage News Today; Stagnant Rates

Wednesday, May 26, 2021

Today’s mortgage rates did not change. So, if you want to buy a house or refinance your current one, you still have a chance to lock in a historically low interest rate.

  • The rate on a 30-year fixed mortgage today is 3.12 percent on average.
  • The rate on a 15-year mortgage is 2.42 percent on average.
  • The rate on a 30-year jumbo mortgage is 3.09 percent on average.
  • The rate on a 5/1 ARM is 3.14 percent on average.

30-year Fixed-rate Mortgages

The 30-year fixed rate was 3.12 percent a week ago, which remained the same. However, the rate today is lower than the 52-week high of 3.50 percent.

The 30-year fixed mortgage interest rate is 3.29 percent. It was 3.31 percent at this time last week.

15-year Fixed-rate Mortgages

The 15-year fixed mortgage rate is now 2.42 percent, up from 2.41 percent on Tuesday. It was 2.41 percent last week. The rate today is higher than the 52-week low of 2.32 percent.

A 15-year fixed-rate mortgage has an APR of 2.69 percent. It was 2.69 percent at this time last week.

A 15-year fixed-rate mortgage would cost around $663 per month in principle and interest per $100,000 at today’s interest rate of 2.42 percent.

Throughout the loan, you would pay approximately $19,345 in total interest.

Jumbo Mortgages

The average interest rate on a 30-year jumbo loan is 3.09 percent, which is lower than last week at this time. At this time last week, the average rate was 3.11 percent.

A jumbo mortgage’s 30-year fixed rate is now higher than the 52-week low of 2.85 percent.

With a 30-year fixed-rate jumbo mortgage at today’s interest rate of 3.09 percent, Borrowers will pay $426 in principle and interest per $100,000 borrowed. That implies that on a $750,000 loan, the monthly principal and interest payment would be roughly $3,199, and the total interest paid would be approximately $401,478 over the life of the loan.

5/1 ARMs

The rate on a 5/1 ARM stayed at 3.14 percent, unchanged from yesterday. Last week, the rate was 3.15 percent. The current rate is lower than the 52-week high of 3.32.

With a $100,000 5/1 ARM at today’s interest rate of 3.14 percent, Borrowers will pay $429 in principle and interest each month.

What Is The Impact Of Interest Rates?

The loan term, or payment schedule, is an essential factor to consider when selecting a mortgage. The most typical loan periods are 15 and 30 years, but 10-, 20-, and 40-year mortgages are also available. Fixed-rate mortgages and adjustable-rate mortgages are the two types of mortgages. Fixed-rate mortgages have fixed interest rates throughout the loan. In contrast to a fixed-rate mortgage, the interest rates on an adjustable-rate mortgage are constant for a set period (typically five, seven, or ten years). Following thereafter, the rate is adjusted annually per the market rate.

Your unique position and aspirations determine the optimum loan term, so while selecting a mortgage, keep in mind what is vital to you.

Why Are Mortgage Rates Lower Nowadays?

Despite mild bond market weakening, mortgage rates fell modestly today. Whereas bond weakness usually leads to higher interest rates. The most typical cause of this kind of disparity can be summed up in one word: TIME.

The bond market is active all day. On the other hand, mortgage lenders like to change rates just once each day in the morning. However, they will issue mid-day reprices if the bond market is volatile enough. In yesterday’s situation, bonds improved throughout the day but did not sufficiently warrant a mid-day reprice from the average lender. Despite this, lenders do not always pass on all of the benefits suggested by bond market gains all at once.

By the time lenders needed to release today’s initial rates sheets, they were still catching up on yesterday’s bond market strength. However, bonds fell sufficiently this afternoon that mortgage rates should be back to where they were yesterday.