Mortgage rates are rising today | 09/22/2021



The average 30-year fixed-rate mortgage rate is up 3.251% today, a slight increase from yesterday. The interest rate on a 30-year refinance was also higher today, rising to 3.386%. All other categories of fixed rate loans also saw interest rate increases, while variable rate mortgages saw mixed interest rates.

Although interest rates are a bit higher today, they are still attractive to creditworthy borrowers, whether it’s applying for a new mortgage or refinancing their current home loan.

  • The most recent interest rate on a 30-year fixed-rate mortgage is 3.251%.
  • The most recent interest rate on a 15-year fixed-rate mortgage is 2.365%.
  • The latest rate on a 5/1 Jumbo ARM is 2.195%.
  • The latest rate on a 7/1 compliant ARM is 3.869%.
  • The latest rate on a 10/1 compliant ARM is 3.585%.

Money’s daily mortgage 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.

Current mortgage rates: 30-year fixed rate mortgages

  • The 30-year rate is 3.251%.
  • This is a day inwrinkle of 0.007 percentage points. ⇑
  • That’s a month dewrinkle of 0.001 percentage points. ⇓

Most borrowers are attracted to fixed-rate mortgages because of their constant interest rates and monthly payments. The 30 year loan is the number one choice for many because of its long payback period, which results in lower monthly payments compared to shorter loans. On the other hand, the interest rate tends to be higher, which means you will pay more in the long run.

Ads for money. We may be compensated if you click on this ad.advertisement

Average mortgage rates

Data is based on U.S. mortgage loans completed on 9/21/2021

Credit type 21st September Last week Change
15 years firmly conventional 2.37% 2.34% 0.03%
Firmly conventional for 30 years 3.25% 3.25% 0.0%
7/1 ARM rate 3.87% 3.81% 0.06%
10/1 ARM rate 3.59% 3.79% 0.2%

Your actual price may differ

Current mortgage rates: 15 years fixed rate Mortgage rates

  • The 15-year rate is 2.365%.
  • This is a day inwrinkle of 0.005 percentage points. ⇑
  • That’s a month dewrinkle of 0.009 percentage points. ⇓

Due to the shorter amortization period of a 15-year fixed-rate loan, the monthly payments are higher than for a similarly sized 30-year loan. However, the interest rate tends to be lower. So if you can afford the higher payments, you can save money by paying less interest.

Current Mortgage Rates: 5/1 jumbo floating rate mortgage rate

  • The 5/1 ARM rate is 2.195%.
  • That is unchanged from yesterday’s course. ⇔
  • That’s a month inwrinkle of 0.04 percentage points. ⇑

Instead of a fixed rate loan, you can opt for a variable rate mortgage. ARMs will start with a low, fixed introductory rate that will eventually become variable and adjusted on a regular basis. This means that the monthly payments are fixed initially but change with the rate.

For example, a 5/1 ARM has a fixed rate for five years. After that, the rate is reset every year. You can find ARMs in a number of different terms.

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 2.993%. ⇑
  • The interest rate on a 30 year VA mortgage is 3,008. ⇑
  • The interest rate on a 30 year jumbo mortgage is 3.34%. ⇓

Current mortgage lending rates

The average interest rates for 30 year loans, 15 year loans, and 5/1 jumbo ARMs are:

  • The refinancing rate for a 30-year fixed-rate refinancing is 3.386%. ⇑
  • The refinancing rate for a 15-year fixed-rate refinancing is 2.482%. ⇑
  • The refinancing rate for a 5/1 Jumbo ARM is 2.467. ⇔
  • The refinancing rate for a 7/1 compliant ARM is 4.31%. ⇑
  • The refinancing rate on a 10/1 compliant ARM is 3.816%. ⇓
Ads for money. We may be compensated if you click on this ad.advertisementAds by Money disclaimer

Average mortgage refinancing rates

Data is based on U.S. mortgage loans completed on 9/21/2021

Credit type 21st September Last week Change
15 years firmly conventional 2.48% 2.46% 0.02%
Firmly conventional for 30 years 3.39% 3.37% 0.02%
7/1 ARM rate 4.31% 4.32% 0.01%
10/1 ARM rate 3.82% 3.85% 0.03%

Your actual price may differ

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 course of 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 say the rise won’t come overnight and 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 real estate finance market. The Fed has reaffirmed its commitment to this policy several times for the foreseeable future, most recently at a monetary policy meeting at the end of January.
  • The 10-year treasury note. Mortgage rates are moving in lockstep 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 slowly since then. Yields are currently above 1% since the beginning of the year, which is driving interest rates up slightly. 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 warning signs that can drag your credit score down. Borrowers with the highest creditworthiness get the best interest rates. Therefore, it is important to check your credit report before you start looking for a home. Taking steps to fix 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 sizeable 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 settle for 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.

Also, 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 have 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. Locking your interest rate once you find the right interest rate, loan product, and lender will ensure that your mortgage rate does not go up before you take out the loan.

Our mortgage rate method

Money Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for whom the latest business daily rates are available. Today we are showing prices for Tuesday, September 21, 2021. Our interest rates reflect what a typical borrower with a credit score 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:


Leave A Reply

Your email address will not be published.