Table of Contents: Masthead StickyToday’s mortgage rates

Mortgage type
Average rate today

15-year fixed
2.34%

30-year fixed
3.26%

7/1 ARM
4.13%

10/1 ARM
4.0%

30-year FHA
2.56%

VA mortgage loan
2.62%

Conventional rates from Money.com; government-backed rates from RedVentures.

Today’s refinance rates

Mortgage type
Average rate today

15-year fixed
2.55%

30-year fixed
3.59%

7/1 ARM
4.43%

10/1 ARM
4.28%

30-year FHA
2.58%

VA mortgage loan
2.64%

Conventional rates from Money.com; government-backed rates from RedVentures.

Mortgage interest rates forecast

Mortgage rates tend to be low when the economy is bad. Rates have stayed low since spring 2020 because the coronavirus pandemic has hurt the US economy.

The economy has gradually improved over the past few months as Americans receive vaccines and businesses reopen. Unemployment numbers are going down, and inflation is increasing – two signs of economic recovery.

Mortgage rates haven’t increased in response to the improving economy yet, though.

The Federal Reserve meets next Tuesday and Wednesday, July 27 and 28. The Fed has been aggressively buying mortgage-backed securities, which keeps mortgage rates stable. If the Fed announces that it will slow down on buying mortgage-backed securities, we could see mortgage rates increase later in 2021.

The Fed could also give insights into its plans for raising the federal funds rate in this meeting. In the June meeting, the Fed said it planned to increase the federal funds rate twice in 2023, which is more aggressive than it had previously talked about. If the Fed has more news about the federal funds rate, it could be another indicator that mortgage rates will go up in the fall.

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Source:: Business Insider

      

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