Thursday, July 1, 2021
As the title suggests, mortgage rates are following the low trend. This has been the case for the past few weeks. Several reasons combine to form this argument, including competition among lenders and an unusual spike in home prices. Without any further ado, we’ll see interest rates for today:
- 30-year mortgage rate: 3.130% for home purchase and 3.210% for refinance
- 15-year mortgage rate: 2.430% for home purchase and 2.500% for refinance
- 5/1 ARM mortgage: 3.330% for home purchase and 3.000% for refinance
- 30-year jumbo mortgage rate: 3.140% for home purchase and 3.220% for refinance
According to bank rates, these are the rates as of today. When comparing them with yesterday or last week, the rates haven’t increased a bit. While yesterday witnessed a fluctuating rates trend with last week, the rates of today are the same. In fact, the refinance rate is also unchanged compared to the previous week.
Therefore, it’s still a better catch at refinancing or purchasing properties at a low rate.
Will the Mortgage Rates Remain Low?
As of now, the rates are low. In fact, for most of 2021, the rates have been flickering over 3%. However, many experts and Freddie & Mac managers project that rates will rise in the coming month.
Now, there are several factors at play that support this statement. Firstly, the US economy is starting to recover again, which will cause the rate to rise. Secondly, there has been an upward trend in inflation.
Financial experts suggest that high consumer spending will cause the GDP of the economy to increase. As a result, positive inflation will also rise to match the effect of growing spending. All of this will affect the mortgage rates that are likely to show an upward trend.
While mortgage rates are expected to show an upward trend, they might not rise at higher levels for the remaining year. The reason for high economic growth is due to the development of COVID vaccines which will cause the growth to increase.
While rates are low, it might still not be a great opportunity to purchase a home now. Why is that? The most underlying reason is that there has been a terrible upsurge in home prices. Therefore, even if you lock a mortgage at a low rate, how will you counter the huge purchase price?
Before going for any type of loan, plan and calculate what you can afford. Without planning, you might end up in a terrible deal which can leave you in debt for a longer time to come.
Nonetheless, it’s the best time for refinancing because the rates are generally lower. Refinancing will get you a better mortgage deal rather than purchase home price.
What’re you waiting for?
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