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Daily Mortgage Rates End Week Lower | December 11-12, 2021

Daily Mortgage Rates End Week Lower | December 11-12, 2021
Written by Publishing Team

The 30-year fixed rate ended the week at an average of 3.619%, slightly lower than it was at the start of the week. The 30-year refinancing rate ended the week at 3.786%.

Mortgage rates were volatile throughout the week but eventually ended in a downward slide. This is good news for well-qualified buyers who should be able to find competitive rates and comfortable monthly payments to buy a home or refinance a mortgage.

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

The money daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — would pay if they applied for a home loan now. Prices for each day are based on the average rate of 8000 lenders submitted to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower, as they measure the rates offered to borrowers with higher credit scores.

Flat Rates on a 30-Year Mortgage Today

  • The 30-year rate is 3.619%.
  • This is one day Fromwrinkle 0.034 percentage points.
  • This is one month in awrinkle 0.234 percentage points.

The most common home loan is a 30-year fixed rate mortgage. It is attractive to borrowers because the long payback time results in relatively low monthly payments, and the interest and payments will not change as long as you keep the loan. On the other hand, the interest rate will be higher than that of short-term loans, so it is the more expensive option in the long run.

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Average Mortgage Rates

Data based on US mortgage loans closed on December 9, 2021

loan type December 9 last week change
15 years traditional fixed 2.59% 2.6% 0.01%
30 years of conventional fixed capacity 3.62% 3.57% 0.05%
Rate 7/1 ARM 3.42% 3.27% 0.15%
Rate 1/10 ARM 3.51% 3.38% 0.13%

Your actual price may vary

15 years fixed exchange rate Today’s Mortgage Rates

  • The 15-year rate is 2.588%.
  • This is one day Fromwrinkle 0.015 percentage points.
  • This is one month in awrinkle 0.081 percentage point.

A 15-year fixed rate mortgage can be a good alternative if you want to save time and money in general. The interest rate is lower than the long-term loan rate and the loan is paid off faster. However, the short term leads to higher monthly payments, so it may not fit into every budget.

Mortgage rates are adjustable today

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

If you only plan to stay in the house for a short time, an adjustable mortgage may be a good option. ARM starts with a fixed interest rate which will eventually become adjustable and start resetting periodically. For example, 1/5 ARM will have a fixed rate for five years which will be reset and changed annually. The potential downside to ARM is that once the price is adjusted, there can be a significant price increase which can result in a higher monthly payment as well.

Current Mortgage Rates: Mega Loan Rates, FHA, and FHA

Average rates for FHA loans, FHA loans, and jumbo loans are:

  • The rate on a 30-year mortgage is 3.379%. ⇓
  • The 30-year mortgage rate is 3.45%. ⇓
  • The 30-year mortgage rate is 3.641%. ⇓

Current Mortgage Refinance Rates

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

  • The refinancing rate on the 30-year fixed rate refinancing is 3.786%. ⇓
  • The refinancing rate on the 15-year fixed rate refinancing is 2.694%. ⇓
  • The refinancing rate on 5/1 ARM is 2.476%. ⇔
  • The refinancing rate on the 7/1 arm is 3.06%. ⇑
  • The refinancing rate on 1/10 ARM is 3.966%. ⇑
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Average Mortgage Refinance Rates

Data based on US mortgage loans closed on December 9, 2021

loan type December 9 last week change
15 years traditional fixed 2.69% 2.71% 0.02%
30 years of conventional fixed capacity 3.79% 3.76% 0.03%
Rate 7/1 ARM 3.06% 3.37% 0.31%
Rate 1/10 ARM 3.97% 3.94% 0.03%

Your actual price may vary

Where are mortgage rates headed this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to lower mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes that they might not have been able to afford if the prices were higher.

In January 2021, prices fell briefly to all-time lows, but trended higher for the month and into February.

Looking ahead, experts believe interest rates will rise further in 2021, but only modestly. Factors that could affect rates include how quickly COVID-19 vaccines are distributed and when lawmakers can agree on another economic relief package. More vaccinations and stimulus from the government could improve economic conditions, which would boost rates.

While mortgage rates are likely to rise this year, experts say the increase won’t happen overnight nor will it be a dramatic jump. Prices should remain near historically low levels during the first half of the year, and rise slightly later in the year. Even with interest rates rising, it will still be a good time to finance a new home or refinance a mortgage.

Factors that affect mortgage rates include:

  • Federal Reserve. The Fed took quick action when the pandemic hit the US in March of 2020. The Fed announced plans to keep money moving in the economy by lowering the Fed’s short-term fund rate to between 0% and 0.25%, a low level. as they go. The central bank also pledged to buy mortgage-backed securities and Treasuries, which support the housing finance market, but it began tapering those purchases in November.
  • 10-year treasury bonds. Mortgage rates are moving in leaps and bounds with 10-year government treasury bond yields. Returns fell below 1% for the first time in March 2020 and have been rising ever since. On average, there is usually a 1.8-point “difference” between Treasury yields and benchmark mortgage rates.
  • the broader economy. Unemployment rates and changes in GDP are important indicators of the overall health of an economy. When employment and GDP growth are low, it means the economy is weak, which can lead to lower interest rates. Thanks to the pandemic, unemployment levels reached an all-time high early last year and have yet to recover. GDP also took a hit, and while it rebounded somewhat, there is still plenty of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers get. Qualifying for the lowest mortgage rates takes a little work and will depend on both personal financial factors and market conditions.

Check your credit score and credit report. Mistakes or other red flags may lower your credit score. The borrowers with the highest credit scores will get the best rates, so checking your credit report before beginning the home search process is key. Taking steps to fix mistakes will help increase your score. If you have high credit card balances, paying them off can also provide a quick payment.

Save money for a big down payment. This will lower the loan-to-value ratio, which means the amount of home price the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also want to see money that has been held in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the home.

Shop for the best price. Do not accept the first interest rate that the lender offers you. Check with at least three different lenders to see who offers the lowest interest. Also consider different types of lenders, such as credit unions and online lenders as well as traditional banks.

Also. Take your time to learn about the different types of loans. While a 30-year mortgage is the most common type of mortgage, consider a short-term loan such as a 15-year loan or adjustable mortgage. These types of loans often come at a lower rate than a traditional 30-year mortgage. Compare everyone’s costs to see which best suits your needs and financial situation. Government loans—such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture—can be more affordable options for those who qualify.

Finally, fix your price. Locking in your rate once you’ve found the right rate, loan product, and lender will help ensure that your mortgage rate doesn’t increase before the loan closes.

Our Mortgage Rate Methodology

Daily Cash Mortgage rates show the average rate offered by more than 8000 lenders across the United States, with the latest working day rates available. Today, we’re showing interest rates for Thursday, December 9, 2021. Our rates reflect what a typical borrower with a credit score of 700 would expect to pay for a home purchase loan right now. These prices are shown to people who have placed at least 20% and include discount points.

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