Daily mortgage rates stay above 3.6% | December 10, 2021

TThe average rate on a 30-year fixed-rate mortgage today is 3.619%, down 0.034 percentage points from yesterday. The 30-year refinancing rate is also lower, at 3.786%.

Mortgage rates have fallen slightly on almost all types of credit and remain near historic lows. Still, borrowers with strong credit plans for home buying or mortgage refinancing should be able to find and secure a low interest rate and comfortable monthly payments.

  • The most recent interest rate on a 30-year fixed-rate mortgage is 3.619%. ⇓
  • The most recent interest rate on a 15-year fixed-rate mortgage is 2.588%. ⇓
  • The latest rate on a 5/1 ARM is 2.197%. ⇔
  • The latest rate on a 7/1 ARM is 3.422%. ⇓
  • The latest rate on a 10/1 ARM is 3.507%. ⇓

Money is everyday mortgage Interest rates reflect what a borrower with a 20% down payment and a credit score of 700 – roughly the national average – could pay if he or she applies for a home loan now. Daily rates are based on the average price that 8,000 lenders offered applicants on the previous business day. Freddie Mac’s weekly interest rates will generally be lower as they measure the interest rates offered to borrowers with higher creditworthiness.

30 year fixed-rate mortgage rates today

  • The 30-year rate is 3.619%.
  • This is a day deIncrease of 0.034 percentage points.
  • That’s a month inwrinkle of 0.234 percentage points.

The 30 year fixed rate mortgage is the most popular home loan among borrowers. Benefits include a predictable interest rate, monthly payments that don’t change, and a long payback period that translates into lower monthly payments. The potential downside is that the interest rate is higher compared to a shorter term loan, so you will pay more over the full 30 year term.

15 years fixed rate Mortgage Rates Today

  • The 15-year rate is 2.588%.
  • This is a day deIncrease of 0.015 percentage points.
  • That’s a month inwrinkle of 0.081 percentage points.

Some borrowers prefer the shorter term on a 15-year fixed-rate mortgage because the interest rate is lower than a long-term loan, which makes it cheaper over time and allows them to pay off the debt faster. However, the short term also means that the monthly payments are higher than with a corresponding 30-year loan.

Variable mortgage rates today

  • The latest rate on a 5/1 ARM is 2.197%. ⇔
  • The latest rate on a 7/1 ARM is 3.422%. ⇓
  • The latest rate on a 10/1 ARM is 3.507%. ⇓

An adjustable rate mortgage could be a good option for borrowers who do not intend to keep their home for the long term. The interest rate on an ARM will be low and fixed for a number of years before it becomes variable and changes regularly. For example, the interest rate on a 5/1 ARM is fixed for five years and then reset every year. The risk with an ARM is that the interest rate could rise sharply once it is adjusted.

Current mortgage rates: VA, FHA, and jumbo loan rates

The average interest rates on FHA, VA, and Jumbo loans are:

  • The interest rate on a 30 year FHA mortgage is 3.379%. ⇓
  • The interest rate on a 30 year VA mortgage is 3.45%. ⇓
  • The interest rate on a 30 year jumbo mortgage is 3.641%. ⇓

Current mortgage lending rates

The average refinancing rates for 30 year loans, 15 year loans, and ARMs are:

  • The refinancing rate for a 30-year fixed-rate refinancing is 3.786%. ⇓
  • The refinancing rate for a 15-year fixed-rate refinancing is 2.694%. ⇓
  • The refinancing rate for a 5/1 ARM is 2.476%. ⇔
  • The refinancing rate for a 7/1 ARM is 3.06%. ⇑
  • The refinancing rate for a 10/1 ARM is 3.966%. ⇑

Where are mortgage rates going this year?

Mortgage rates fell by 2020. Millions of homeowners responded to the low mortgage rates by refinancing existing loans and taking out new ones. Many people bought houses that they might not have been able to afford at higher prices.

In January 2021, rates briefly fell to their lowest level on record, but trended higher over the month and into February.

Looking ahead, experts assume that interest rates will continue to rise in 2021, but modestly. Factors that could affect rates include how quickly the COVID-19 vaccines will be distributed and when lawmakers can agree on another economic aid package. More vaccinations and government incentives could lead to improved economic conditions, which would raise rates.

While mortgage rates are likely to rise this year, experts believe it won’t happen overnight and it won’t be a dramatic jump. Interest rates should stay near historically low levels in the first half of the year and rise slightly later in the year. Even when interest rates rise, it’s still a good time to buy a new home or refinance a mortgage.

Some of the factors that affect mortgage rates include:

  • The Federal Reserve. When the pandemic hit the United States in March 2020, the Fed took swift action. The Fed announced plans to keep money flowing through the economy by lowering the short-term federal fund interest rate to 0% to 0.25%, which is as low as they go. The central bank also promised to buy mortgage-backed securities and government bonds to prop up the home finance market, but began tapering those purchases in November.
  • The 10-year treasury note. Mortgage rates move in step with the yields on the government’s 10-year government bond. Yields fell below 1% for the first time in March 2020 and have been rising since then. On average, there is typically a 1.8 point spread between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. Low employment and GDP growth means the economy is weak, which can drive interest rates down. Thanks to the pandemic, unemployment hit an all-time high early last year and has not yet recovered. GDP also fell, and although it has recovered somewhat, there is still plenty of room for improvement.

Tips for the lowest possible mortgage rate

There is no one universal mortgage rate that all borrowers get. Qualifying for the lowest mortgage rates takes a bit of work and depends on both personal financial factors and market conditions.

Check your credit history and credit report. Mistakes or other red flags can drag your creditworthiness down. Borrowers with the highest creditworthiness get the best interest rates. Hence, it is important to check your credit report before you start looking for a home. Taking steps to correct bugs can increase your score. If you have a high credit card balance, paying off can be a quick boost too.

Save money on a substantial down payment. This will lower your loan-to-value ratio, ie how much of the house price the lender has to finance. A lower LTV usually means a lower mortgage rate. Lenders also want to see money that has been stored in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best price. Don’t be satisfied with the first rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rates. In addition to traditional banks, consider different types of lenders, such as credit unions and online lenders.

Likewise. Take the time to read up on the different types of credit. While the 30 year fixed rate mortgage is the most common mortgage, consider a shorter term loan such as a 15 year loan or an adjustable rate mortgage. These types of loans often come with a lower interest rate than a traditional 30 year mortgage. Compare the cost of each to see which one best fits your needs and financial situation. Government loans – such as those supported by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – can be cheaper options for those who qualify.

Finally, secure your tariff. By setting your interest rate once you find the right interest rate, loan product, and lender, you can make sure your mortgage rate doesn’t go up before you take out the loan.

Our mortgage rate method

Money Daily Mortgage Rate shows the average rate offered by over 8,000 lenders in the United States for whom the latest daily business rates are available. Today we show the interest rates for Thursday, December 9th, 2021. Our interest rates reflect what a typical borrower with a creditworthiness of 700 currently expects to pay for a home loan. These prices were offered to people off 20% and include discount points.

More from money:

© Copyright 2021 Ad Practitioners, LLC. All rights reserved.
This article originally appeared on Money.com and may contain affiliate links that Money will receive compensation for. The opinions expressed in this article are those of the author, not those of any third party, and have not been reviewed, approved, or otherwise endorsed. Offers can be changed without prior notice. Please see Money’s full disclaimer for more information.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

Comments are closed.