National mortgage rates today, May 20, 2021 | Rates pushed up
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Looking at mortgage rates today, a number of prominent rates have gone up. The averages of 30-year fixed mortgages and 15-year fixed mortgages both increased. We also saw a rise in the average rate of variable rate mortgages (ARM) 5/1.
The averages for 30 fixed years, 15 fixed years and 5/1 ARM are:
A look at today’s mortgage refinance rates
Refinancing has gotten a little more expensive today as 30-year and 15-year fixed-rate mortgages with fixed refinancing have seen their average rates rise. Shorter-term 10-year fixed rate refinance mortgages have also increased.
The average refinancing rates are as follows:
Compare national mortgage rates from various lenders.
30 year fixed rate mortgages
For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.09%, an increase of 4 basis points from the week before.
You can use NextAdvisor’s home loan calculator to get an idea of what your monthly payments will be and understand how adding additional payments will impact your loan. The mortgage calculator can also show you all the interest you will pay during the life of the loan
15 year fixed rate mortgages
The median rate for a 15-year fixed mortgage is 2.37%, an increase of 2 basis points from seven days ago.
The monthly payment for a 15 year fixed rate mortgage will be much higher. It would therefore be easier to find room in your budget for the monthly loan payment over 30 years. But 15-year loans have huge advantages: you’ll pay thousands of interest less and pay off your loan much faster.
5/1 variable rate mortgages
A 5/1 ARM has an average rate of 3.15%, an increase of 1 basis point from seven days ago.
An adjustable rate mortgage is ideal for borrowers who will sell or refinance before rate changes. If not, their interest rates could end up being remarkably higher after a rate adjustment.
For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Just keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.
Mortgage rate trends
To see where mortgage rates are going, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. If we look at the history of mortgage rates, we are in the middle of a period of unprecedented low rates. The table below compares the average rates today to what they were a week ago and is based on information provided to Bankrate by lenders across the country:
Updated May 20, 2021.
A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, causing mortgage-backed securities to become less attractive to investors, leading to lower prices and higher yields. And if yields rise, interest rates become more expensive for borrowers.
A strong economy has historically increased demand for housing. When more homes are sold, the demand for mortgages also increases, which can lead to higher rates. But the flip side is also true: A drop in demand for mortgages could signal an upcoming drop in mortgage rates.
Should I lock in my mortgage rate now?
Mortgage rates rise and fall daily and it is impossible to time the market. So locking in your interest rate now is a good idea, because overall rates are exceptionally low.
When you lock in your rate, ask your lender how long the lock is valid for. A rate lock can last from 30 to 60 days, which usually gives you enough time to close before the lock expires. If something happens where you need to extend your rate foreclosure, find out about the fees, as many lenders charge a fee to extend a rate foreclosure.
What to expect for mortgage rates in 2021
To start the year, mortgage rates jumped above 3% for the first time since last summer. After this dramatic increase, we saw a cut that brought rates below 3%. With rates hovering around 3%, they’re still close to or below the levels many experts expected mortgage rates to be in 2021.
The direction of rates will depend on the economy. And dealing effectively with the impacts of the coronavirus pandemic should boost our economic recovery. As the economy recovers, we should see inflation rise, pushing interest rates higher. But despite the potential for rising inflation, mortgage rates are expected to stay low this year. One reason for this: The Federal Reserve believes that low interest rates will help the economy rebound. It is therefore likely that political decisions will be taken in favor of keeping rates low.
This Week’s Mortgage Predictions
In the short term, any change in mortgage rates should be minimal. The rates should therefore be around 3% for the moment.
However, the economy still has a long way to go before it returns to pre-pandemic levels. If we’re surprised by bad news, it could put a damper on rates.
What impact on current mortgage rates?
Your mortgage rate depends on several factors. First of all, your personal finances have a big influence. Factors like a higher credit score or the possibility of making a larger down payment will help you get the best rate. However, not everything is in your control, many more important economic factors also play a role:
- Overall health of the economy
- Decisions made by the Federal Reserve
- Consumer and government spending
- 10-year US Treasury yields
- Inflation rate
- Individual circumstances: loan-to-value ratio, credit history and type of mortgage
How to get the best mortgage rate
Comparing home loan offers is a great way to get the lowest mortgage rate.
Your mortgage rate depends on a number of factors that lenders take into account when assessing your chances of paying off your mortgage. Your credit score and debt-to-debt ratio (DTI) are factored into the decision. And even the value of the property relative to your mortgage balance matters. So putting more money in your down payment can lower your mortgage interest rate.
But the banks will see your situation differently. So you can give the same documentation to three different lenders and receive mortgage offers with very different rates and fees.
How we got these rates
The rates we have included are averages provided by the Bankrate.com website averages and are calculated after the close of the previous business day. The lenders included in the “Bankrate.com Site Average” tables are not the same every day.
National lenders provide this mortgage rate information to Bankrate.com. It is possible that the mortgage rates we refer to have changed since its publication.