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Why Are Mortgage Rates Largely Unchanged? | September 14, 2021

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

Since this time last week, mortgage rates have remained largely unchanged for both refinancing and home purchase.

Checking out rates today can help you get the financing you need before the real estate bubble bursts and rates change. Because the markets are a bit uncertain, this is your time to get a low mortgage rate before the Fed steps in and monthly mortgage payments rise.

Current mortgage refinance rates for September 14, 2021

Mortgage rates have remained steady as investors and institutions await guidance from the Federal Reserve. The Fed could change its monetary policies at any moment to combat inflation and a rise in consumer prices. In the interim, homeowners or buyers should seek mortgages or refinancing with rates that have consistently remained below 3% for much of the COVID-19 pandemic.

This week’s mortgage refinance rates have remained mostly unchanged since yesterday.

  • 30-year fixed refinance rates: 2.750%, down from yesterday

  • 20-year fixed refinance rates: 2.500%, unchanged from yesterday

  • 15-year fixed refinance rates: 2.000%, down ↓ 2.125% yesterday

  • 10-year fixed refinance rates: 2.000%, unchanged from yesterday

Rates last updated on September 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.

Current mortgage rates for September 14, 2021 window.credibleAsyncInit = function() { // #credible-rate-table is the selector of a div on the partner's site // where they want Credible's Rate table to be inserted into CredibleSDK.initWidget('#credible-rate-table', { // By default we load widget from production environment so nextoption is commented. Note that possible values for environment include: ‘production' or ‘stage'. // environment: 'production', // This is the widget configuration, partner can specify marketplace, type and variation for a widget product: { marketplace: 'mortgage-combined', type: 'rate-table', variation: 'interactive' }, ui: { scrollTopPad: 50 }, analytics: { // "source" value will be translated to "utm_source" when the user clicks on the widget CTA. This parameter is optional. // source: 'example-source', uniqueId: 'cae47e7e-701a-5bcf-bcf0-a71aeff5341f' }, // Optional data to be sent to tracking events meta: { contentId: 'cae47e7e-701a-5bcf-bcf0-a71aeff5341f', articleTitle: 'Lower Your Interest Rates', articleTags: '/FINANCE/MONEY/PERSONAL WEALTH,/GLOBAL NEWS', segmentId: 'a189e5b6-7796-4b77-9663-26b47a1c34e8' }, // Here the partner can specify a unique id for a user, page or other value. // uniqueId: 'example-uniqueId', // Optional callback that will be called if present once widget is inserted into the DOM onWidgetInit: function(){}, // Optional callback that will be called if an unhandled error is thrown during widget rendering phase onWidgetError: function(){}, }); // #credible-rich-cta is the selector of a div on the partner's site // where they want Credible's Rich CTA to be inserted into CredibleSDK.initWidget('#credible-rich-cta', { product: { marketplace: 'mortgage-combined', type: 'rich-cta', variation: 'interactive' }, }); };

Like today’s refinance rates, current mortgage rates remained largely unchanged since Monday.

  • 30-year fixed mortgage rates: 2.750%, unchanged from yesterday

  • 20-year fixed mortgage rates: 2.500%, up ↑ 0.125% from 2.375% yesterday

  • 15-year fixed mortgage rates: 2.000%, unchanged since yesterday

  • 10-year fixed mortgage rates: 2.000%, steady since Monday

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

Keep in mind that mortgage rates could change at any time if the Federal Reserve meets and chooses to increase interest rates. If you are considering a home purchase, ask your broker about locking in your rate so that you can avoid wild fluctuations in the market.

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?

Understanding what alters mortgage rates will help you shop for a mortgage with a bit of wisdom. Plus, you know what your mortgage broker is facing as they try to sell you on mortgage packages and/or locked-in rates.

  • Inflation - Inflation reduces everyone’s spending power, and a rise in inflation will cause interest rates to rise.

  • Economic conditions - The COVID-19 pandemic is still ongoing, but any major economic slide like a major oil spill, banking crisis, etc. could cause a change in interest rates.

  • The Federal Reserve - The Federal Reserve is proactive when changing interest rates, could meet at any time and tracks the market very carefully.

  • Origination cost - The fees associated with your mortgage can easily increase your costs. Look for a lender that offers low fees or potentially rolls some costs into your loan. You might also ask the seller to pay for some or all of your origination costs.

  • Your own financial/credit history - Try to keep your debt-to-income ratio low, increase your credit score by paying off debts and start saving for a down payment as soon as possible.

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