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Today’s National Mortgage Rates, June 10, 2021 | Lower rates

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A few key mortgage rates fell today. The 30-year and 15-year fixed mortgage averages have been reduced. The most common type of variable rate mortgage is the higher notched 5/1 Variable Rate Mortgage (ARM).

The average mortgage rates are as follows:

Mortgage Refinance Rate Today

There is good news if you are considering refinancing, as the average rates for 15-year and 30-year fixed refinance loans have come down. Shorter-term 10-year fixed rate refinancing mortgages have also declined.

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

Compare mortgage rates nationwide from various lenders.

30-year fixed rate mortgage rates

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.08%, which is 2 basis points down from seven days ago.

You can use NextAdvisor’s mortgage calculator to figure out your monthly payments and see how much you’ll save if you make additional payments. The mortgage calculator can also show you the total interest you will pay over the life of the loan

15-year fixed rate mortgage rates

The median rate for a 15-year fixed-rate mortgage is 2.36%, which is down 1 basis point from the same period last week.

The monthly payment on a 15-year fixed rate mortgage is higher and will put more strain on your monthly budget than a 30-year mortgage. However, 15-year loans have huge advantages: you’ll pay thousands of less interest and pay off your loan much faster.

Variable rate mortgage rates 5/1

A 5/1 ARM has an average rate of 3.24%, up 9 basis points from last week.

An adjustable rate mortgage is ideal for borrowers who will refinance or sell before the rate changes. If not, their interest rates could end up being considerably higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Just keep in mind that depending on how your loan rate is adjusted, your payment can go up dramatically.

Mortgage rate trends

To see where mortgage rates are going, we rely on information gathered by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at the history of mortgage rates, we are in the middle of a period of unprecedented low rates. The table below compares the average rates today to what they were a week ago and is based on information provided to Bankrate by lenders nationwide:

Updated June 10, 2021.

There isn’t a single factor that moves mortgage rates, but there are many. The main ones are inflation and even the unemployment rate. When you see inflation rising, it usually means mortgage rates are about to rise. On the other hand, lower inflation is usually accompanied by lower mortgage rates. With higher inflation, the dollar loses value. This scenario drives buyers away from mortgage-backed securities, leading to lower prices and the need to increase yields. And higher yields force borrowers to pay higher interest rates.

Demand for housing can also affect mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of request can drive up interest rates. And if there is less demand for mortgages, it can lead to lower mortgage rates.

Should I lock in my mortgage rate now?

It is impossible to know in which direction mortgage rates will go overnight. This is why a mortgage rate foreclosure is such a useful tool, because it protects you if rates go up. And with interest rates so low right now, you should lock in your rate as soon as you can.

A rate foreclosure will only last for a specified period of time, typically 30 to 60 days. If you have a problem with closing and it looks like your rate foreclosure will expire, you should speak with your lender. It may offer an extension of the lock, however, you may have to pay a fee for this privilege.

What future for mortgage rates?

To start the year, mortgage rates soared and crossed 3% for the first time since last summer. After this spectacular increase, we saw a cut that brought rates below 3%. With rates hovering around 3%, they’re still close to or below the levels many experts predicted they would reach in 2021.

The way we have handled the coronavirus and our economic recovery will have a huge impact on rates. If consumer and government spending increases, it will likely lead to higher inflation. In this scenario, we will most likely see mortgage rates start to climb. But it will take some time for the United States to return to pre-pandemic levels. So the growth we expect in mortgage rates is more likely to happen over time, not all at once.

Mortgage rate forecasts 2021

Mortgage rates stabilized somewhat after the first volatile months of the year. Going forward, they should remain reasonably stable, but may start to increase.

While there is nothing this week that should cause rates to spike or drop dramatically, the unexpected can happen. And currently, the economy still has a long way to go to return to its pre-pandemic level.

How to get the lowest mortgage rate

Getting loan offers from two or three lenders is one of the best ways to get the lowest mortgage interest rate.

The mortgage rate you qualify for depends on a variety of factors lenders take into account when assessing the likelihood of you paying off your mortgage. Your credit score and your debt-to-income ratio (DTI) are a big part of that decision. And your loan to value ratio (LTV) is important, so having a larger down payment is better for your mortgage rate.

But lenders will view your situation differently. So you can give the same documentation to three different lenders and receive mortgage offers with very different rates and fees.