Mortgage Rates

Mortgage Charges Are Climbing. Do not Panic, Simply Learn This.


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Over the past week, refinancing mortgage rates have returned to their levels, while home buying rates have fallen slightly as investors wait for an economic renaissance.

If you are thinking of refinancing an existing home or buying a new property, check out mortgage rates today because they have proven to be unpredictable and can go up again anytime.

Current mortgage lending rates for July 9, 2021

The US economy tried several reopenings through the summer, but investors are not convinced anything will change before fall. The Fed is not raising rates, and mortgage rates are fluctuating up and down around the same average rates we’ve seen over the past few weeks.

This week’s mortgage refinancing rates returned to their levels as the different mortgage terms moved up and down.

  • 30-year fixed refinancing rates: 2.750%, down sharply from 2.990% yesterday

  • 20-year fixed refinancing rates: 2.750%, unchanged at the end of the week

  • 15-year fixed refinancing rates: 2,000%, steeply down from 2,250%

  • 10-year fixed refinancing rates: 2.125%, less ↓ from 2.250% yesterday

Last updated on July 9, 2021. These prices are based on the assumptions shown here. Actual prices may vary.

Make sure you shop around and compare rates with multiple lenders if you decide to refinance. You can easily do this using Credible’s free online tool and see pre-qualified plans in just three minutes.

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The story goes on

Like today’s refinancing rates, home purchase rates also return to their level at the end of the week.

  • 30-year fixed-rate mortgage rates: 2.750%, down from 2.875% yesterday

  • 20-year fixed-rate mortgage rates: 2.625%, up ↑ 2.500% yesterday

  • 15-year fixed-rate mortgage rates: 2.125%, level at the end of the week

  • 10-year fixed-rate mortgage rates: 2,000%, also unchanged at the end of the week

Last updated on July 9, 2021. These prices are based on the assumptions shown here. Actual prices may vary.

As mentioned earlier, the economy does not seem to be opening up again as hoped. As a result, the Fed is not raising rates and the houses are being sold quickly. Entry into the low rates today will help buyers close before the fall and an expected rate hike.

How to qualify for a lower mortgage rate

Many factors affect the mortgage rate and the terms a lender can offer you. Some of the factors that lenders consider include:

  • Your credit history and credit history

  • How much do you want to borrow

  • The repayment period you want

  • How much deposit you have

  • Your income

  • Other factors

Fortunately, there are steps you can take to make yourself as attractive as possible to potential lenders – and get the best mortgage rate available:

  1. To pay off a debt. Reducing other debts before applying for a mortgage can help improve your credit score by lowering your debt-to-income ratio. It can also help ensure that you have enough disposable income to make your monthly mortgage payment.

  2. Go for a shorter period of time. Ten and 15 year mortgages typically have the lowest interest rates. Because the shorter term means less risk for lenders. If you are able to pay a higher monthly rate, a shorter term can mean a lower interest rate and great interest savings for you over the life of the loan.

  3. Put as much as you can. Lenders – and many sellers – want a minimum of 20% down payment (more if they can). A higher down payment could help you get a lower interest rate, set you apart from other buyers, and avoid costly personal mortgage insurance (PMI).

  4. Check out the programs for first-time home buyers. There are federal and state programs to help beginners with down payments, closing costs, lower interest rates, and more. Some even offer grants.

  5. Maintain your income. Try to avoid changing jobs or quitting before applying for a mortgage.

  6. Consider mortgage points. Mortgage points are closing costs that you pay upfront to the lender to get a lower interest rate. While the spots feel like a big hit at first, a lower interest rate over the life of a mortgage could translate into big interest savings.

Mortgage Interest Forecast

Mortgage rates are closely tied to the federal funds rate – the interest banks charge each other when they borrow or borrow their excess reserves overnight. The Federal Reserve sets a target rate that banks should follow.

When the economy isn’t doing well, the Fed can cut rates, and mortgage rates usually fall too, as it becomes cheaper for lenders to borrow. If the economy improves, the Fed could raise rates to contain inflation – and mortgage rates could rise.

While no one can predict exactly how mortgage rates will behave, the federal funds rate and inflation are among several key indicators that experts can use in their forecast. Mortgage Bankers Association researchers Freddie Mac and Fannie Mae all predict – to varying degrees – that mortgage rates will rise in 2021.

Note, however, that the average interest rate is no guarantee of the rate you might qualify for when applying for a mortgage. Your creditworthiness, down payment, income, and many other factors also play a role.

For your next home purchase, consider using Credible. You can check the current mortgage rates of all of our partner lenders without affecting your creditworthiness. Our free online tool is safe and easy to use – and pre-qualification only takes a few minutes.

Why do mortgage rates fluctuate?

  • Inflation – While inflation is not weighing on homeowners in today’s marketplace, as the economy reopens in the fall, it could spike and reduce purchasing power for homeowners and buyers.

  • Economic Conditions – The COVID-19 pandemic has long played a role in the real estate market and if it persists in certain areas, interest rates could stay low for longer than expected.

  • The Federal Reserve – While it is true that the Fed is not hitting rates right now, it is likely waiting for signs that it should hike rates to protect the strength of the dollar.

  • Issue Costs – Issue costs are likely to stay low while demand is so high. As the Fed hikes rates, the cost of issuance could also rise.

  • Your Own Financial / Credit History – As part of the loan purchase process, try to pay off as much debt as possible, check your creditworthiness using one of several free tools, and keep your debt-to-income ratio low so that you are an attractive candidate for Mortgage lenders.

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