Why Are Mortgage Rates Shifting Unevenly? July 15, 2021

Credible
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Since yesterday, mortgage rates continue to shift unevenly, favoring different loan durations seemingly by the day.

Current mortgage refinance rates for July 15, 2021

As mortgage rates shift unevenly, investors move in and out of different types of investments, allowing irregular price changes to continue for the foreseeable future.

This week’s mortgage refinancing rates are both up and down.

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

  • 20-year fixed refinance rates: 2.750%, down ↓ from 2.875% yesterday

  • 15-year fixed refinance rates: 2.375%, up ↑ from 2.125%

  • 10-year fixed refinance rates: 2.250%, unchanged overnight

Rates last updated on July 15, 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.

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' }, }); }; Current mortgage rates for July 15, 2021

Like today’s refinancing rate, rates for new home purchases are shifting irregularly.

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

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

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

  • 10-year fixed mortgage rates: 2.125%, unchanged after yesterday

Rates last updated on July 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

As investors await the reopening of the economy or a dramatic slowdown in the real estate industry, rates will continue to fluctuate as certain loan types overtake others in popularity, sometimes on a daily basis.

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 may not be an issue today, but inflation will cause home prices to rise, making every mortgage more expensive by proxy.

  • Economic conditions - Investors often wait to see what the Fed will do, how the stock market is reacting or monitor overall volume in the real estate industry.

  • The Federal Reserve - The Fed can raise and lower rates at any time, potentially making mortgages cheaper or more expensive at the drop of a hat.

  • Origination cost - Inflation drives up origination costs, but it also forces home prices higher as a dollar buys less and less over time.

  • Your own financial/credit history - You are encouraged to monitor your credit score, pay down debt, and keep your debt to income ratio as low as possible.

 

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