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Current Mortgage And Refinance Rates Make A Midweek Jump! | July 14, 2021

·6 min read

Content provided by Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states. www.nmlsconsumeraccess.org

Midweek, mortgage rates have risen for both refinancing and home purchase.

Anyone shopping for a home or new mortgage should coordinate with their lender to lock in the best rates, capitalizing on lower rates that could appear by the end of the week.

Current mortgage refinance rates for July 14, 2021

A midweek increase in mortgage refinancing rates points to a push for 30, 20 and 10-year refis while the 15-year (and most unconventional) mortgage might fall out of favor.

  • 30-year fixed refinance rates: 2.875%, up from 2.750%

  • 20-year fixed refinance rates: 2.875%, up ↑ from 2.750%

  • 15-year fixed refinance rates: 2.125%, down ↓ from 2.250% yesterday

  • 10-year fixed refinance rates: 2.250%, up from 2.250% yesterday

Rates last updated on July 14, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Make sure to shop around and compare rates with multiple lenders if you decide to refinance. You can do this easily with Credible’s free online tool and see prequalified rates in only three minutes.

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Like midweek refinance rates, current home purchase rates have risen overnight.

  • 30-year fixed mortgage rates: 2.875%, unchanged from yesterday

  • 20-year fixed mortgage rates: 2.750%, up from 2.625% yesterday

  • 15-year fixed mortgage rates: 2.250%, up from 2.000%

  • 10-year fixed mortgage rates: 2.125%, up from 2.000%

Rates last updated on July 14, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

As mortgage rates ebb and flow, they often reflect the needs of consumers. Consumers seem to be looking at 20, 15 and 10-year mortgages, driving those rates higher while the standard 30-year mortgage may have gone to those who moved earlier in the summer.

How to qualify for a lower mortgage rate

Many factors influence the mortgage rate and terms a lender may offer you. The factors lenders will consider include:

  • Your credit scores and credit history

  • How much you want to borrow

  • The repayment term you’re seeking

  • How much downpayment you have

  • Your income

  • Other factors

Fortunately, you can take steps to make yourself as appealing as possible to potential lenders — and score the best mortgage rate available to you:

  1. Pay off debt. Reducing other debts before you apply for a mortgage can help improve your credit score by reducing your debt-to-income ratio. It can also help ensure you’ll have enough disposable income to be able to make your monthly mortgage payment.

  2. Go for a shorter term. Ten-year and 15-year mortgages tend to have the lowest interest rates. That’s because the shorter term means less risk for lenders. If you’re able to swing a higher monthly payment, a shorter term could mean a lower interest rate and big interest savings for you over the life of the loan.

  3. Put as much down as you can. Lenders — and many sellers — like to see a down payment of at least 20% (more if you’re able). A bigger down payment could help you get a lower rate, set you apart from other buyers, and help you avoid costly private mortgage insurance (PMI).

  4. Check out first-time homebuyer programs. There are federal and state programs that help first-timers with down payments, closing costs, lower interest and more. Some even offer grants.

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

  6. Consider mortgage points. Mortgage points are a closing cost that you pay to the lender up front in exchange for a lower interest rate. While the points may feel like a big hit at first, a lower interest rate could add up to big interest savings over the life of a mortgage.

Mortgage interest rates forecast

Mortgage rates are closely tied to the federal funds rate — the interest rate banks charge each other when borrowing or lending their excess reserves overnight. The Federal Reserve sets a target rate for banks to follow.

When the economy isn’t great, the Fed may lower rates, and mortgage rates usually fall too, since it becomes cheaper for lenders to make loans. When the economy improves, the Fed may raise rates to try to contain inflation — and mortgage rates could climb.

While no one can exactly forecast how mortgage rates will behave, that federal funds rate and inflation are among several key indicators that experts can consider when making predictions. Researchers at the Mortgage Bankers Association, Freddie Mac and Fannie Mae all predict — to varying degrees — that mortgage rates will rise throughout 2021.

But keep in mind that average rates are no guarantee of the rate you might qualify for when applying for a mortgage. Your credit score, down payment amount, income and many other factors will also come into play.

For your next home purchase, consider using Credible. You can check current mortgage rates from all of our partner lenders without affecting your credit score. Our free online tool is safe and simple to use — and it only takes a few minutes to prequalify.

What causes mortgage rates to fluctuate?

  • Inflation - Inflation is always climbing, but an uptick in the real estate market pushed down mortgage rates.

  • Economic conditions - Interest rates are not likely to rise until investors and regulators believe the economy recovers. If the economy were booming, rates would already be higher.

  • The Federal Reserve - Under the law, the Federal Reserve can raise and lower rates at any time. However, it will not do so until it believes the economy is recovering, as mentioned above.

  • Origination cost - Every bank has the right to charge any fees it likes, and that is why it is smart to shop around and save money on origination and closing costs.

  • Your own financial/credit history - Your credit score, debt to income ratio, job history, and rental or mortgage payment history all play into your new mortgage application.

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