Mortgage Interest Rates Today, December 13, 2021 | Rates Pushed Higher

Mortgage Interest Rates Today, December 13, 2021 | Rates Pushed Higher
Written by Publishing Team

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Looking at mortgage rates today, a variety of notable rates have moved higher. The average of both 30-year fixed-rate mortgages and 15-year fixed-mortgages grew on average. The most common type of variable rate mortgage is a 5/1 adjustable rate mortgage (ARM) that has remained fixed.

The averages of 30 years fixed, 15 years fixed, and 5/1 ARM are:

What these changes in mortgage rates mean for homebuyers:

In recent weeks we’ve seen a slow rate hike, but eligible borrowers continue to get discounted rates. But buying a home is much more than your price. There are not many homes for sale, so the competition has driven up home prices. With so few homes for sale, buyers can expect to face a competitive market.

Today’s Mortgage Refinance Rates

Refinancing is a little more expensive today as 30-year and 15-year fixed-rate mortgages have seen their average rates rise. Fixed-return 10-year short-term mortgage refinancing loans also rose.

The average refinancing rates for 30-year, 15-year and 10-year loans are:

Current mortgage rates.

Fixed mortgage rates for 30 years

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.25%, which is 7 basis points growth from last week.

You can use NextAdvisor’s Mortgage Payment Calculator to get an idea of ​​what your monthly payments will be and understand how adding additional payments will affect your loan. The Mortgage Calculator can show you the total interest you will pay for the life of the loan.

15 year mortgage interest rates

The average 15-year fixed-rate mortgage is 2.53%, which is a two basis point increase from the same period last week.

The monthly payment for a 15-year fixed-rate mortgage is larger and will take up a larger portion of your monthly budget than a 30-year mortgage. However, 15-year loans have some big benefits: you’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 ARM Mortgage Rates

The average 5/1 ARM arm rate is 2.74%, which is the same rate from the same time last week.

An adjustable mortgage is ideal for families who will refinance or sell before the rate changes. If not, interest rates may end up significantly higher after the rate adjustment.

In the first five years, 1/5 ARM usually has a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that depending on how much your loan rate adjustment is, your payments will likely increase by a significant amount.

Mortgage Rate Trends

The mortgage interest rate has risen steadily throughout 2021.
This is what experts predicted for 2021. Mortgage rates have rebounded almost this year, but they expect their upward momentum to continue into the year ahead. This is partly due to the Fed’s goal of keeping inflation near 2%, so it has begun to pull back from asset purchases and could start raising interest rates next year.

How do we determine mortgage rates?

NextAdvisor rates averages pulled from Bankrate’s daily rate data.. These overnight rates are based on a specific personal financial profile, which includes only primary home loans where the borrower has a FICO score of 740+.

Bank Transfer Rate is part of the same parent company as NextAdvisor.

Updated December 13, 2021.

Is it a good idea to keep my mortgage rate now?

It is impossible to know which direction mortgage rates will go from day to day. This is why a mortgage rate lock is such a useful tool as it protects you if rates go up. And with interest rates so low at the moment, you should stabilize your rate ASAP.

When you stabilize your rates, ask the lender how long the lock will take. The price lock can be good anywhere from 30 to 60 days, which usually gives you enough time to close before the lock expires. If something happens where you need to extend your rate lock, ask about the fees because many lenders charge a fee to extend your rate lock.

What is the future for mortgage rates?

For most of 2021, mortgage rates were around 3%. However, it is expected to rise in the long term. A combination of factors contribute to this view, including the health of the economy and changes in the Federal Reserve’s policies related to the pandemic. A healthy economy is often characterized by high interest rates, and the US economy is expected to remain strong in 2022. There are expectations that the Federal Reserve will raise interest rates next year, in addition to continuing to reduce the volume of bonds on it. Purchases. The effect of these types of decisions will be higher mortgage rates in the long run.

In the wake of the pandemic, we have learned to expect the unexpected. But apart from another Black Swan event rocking the economy, it’s reasonable to assume rates won’t rise to 6% or 5% anytime soon.

Where Are Mortgage Rates Heading in 2021?

Mortgage rates are expected to remain somewhat low through 2021. Although mortgage rates are rising steadily, they are likely to be slightly higher by the end of this year. As the economy continues to recover, interest rates will rise, but keep in mind that the economy is unlikely to make a full recovery this year as the delta variable is spreading and future variables are still looming.. These factors are likely to contribute to the subdued growth of mortgage rates.

How to get the lowest mortgage rate

Your credit score and loan-to-value (LTV) ratio are among the most important factors lenders use to calculate your mortgage rate.

These days, a credit score of 750 or higher will help you secure the lowest rate. However, even a score of 700 or higher can get you a beneficial price reduction compared to a lower credit score. For a credit score of over 800, the mortgage rate discount will not be meaningful.

Banks give the biggest discounts on mortgage rates to home buyers who are perceived to be less risky. One surefire way to indicate that you are a less risky borrower is to get a larger down payment. A down payment of 20% or more will save you money in two ways: at a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).

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