Today’s Mortgage Rates, June 7, 2021 | Rates Increased

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Looking at today’s mortgage rates the most preeminent rates inched upward. Interest rates on 30-year, fixed-rate mortgages trended upward, while 15-year fixed mortgage rates didn’t fluctuate. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage (ARM) climbed higher.

The average mortgage rates are as follows:

Current Mortgage Rates.

30-Year Fixed-Rate Mortgage Rates

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.10%, which is a growth of 2 basis points from last week.

You can use NextAdvisor’s mortgage loan calculator to get an idea of what your monthly payments will be and play around with extra mortgage payments to wrap your head around how much you could save. The mortgage calculator can also show you how much interest you’ll pay over the life of the loan

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 2.37%, which is the same rate compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be easier. But, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.

5/1 Adjustable-Rate Mortgage Rates

A 5/1 ARM has an average rate of 3.16%, which is a climb of 2 basis points from seven days ago.

An adjustable-rate mortgage is ideal for borrowers who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being remarkably higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Just keep in mind that your rate could climb higher and your payment might grow by hundreds of dollars a month.

Mortgage Rate Trends

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

Loan termToday’s RateLast weekChange
30-year mortgage rate3.10%3.08%+0.02
15-year fixed rate2.37%2.37%N/C
30-year jumbo mortgage rate3.12%3.10%+0.02

Rates accurate as of June 7, 2021.

A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, and this causes mortgage-backed securities to become less enticing for investors, which leads to falling prices and higher yields. And if yields increase, interest rates become more expensive for borrowers.

A strong economy has historically increased demand for homes. When more homes are sold, the demand for mortgages also increases, which can cause rates to go up. But the flip side is also true: A drop in demand for mortgages could signal a coming downturn in mortgage rates.

Should I Lock in My Mortgage Rate Now?

Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are exceptionally low.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If something happens where you need to extend your rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

What’s in Store for Mortgage Rates in 2021

To start the year, mortgage rates spiked and crossed 3% for the first time since last summer. After this dramatic increase, we saw a fall that brought rates back under 3%. With rates hovering around 3%, they are still near or below the levels many experts predicted they would hit in 2021.

The direction rates go will depend on the economy. And effectively dealing with the impacts of the coronavirus pandemic should boost our economic recovery. If consumer and government spending increases, that’s likely to drive inflation higher. And higher inflation usually leads to rising mortgage rates. But it will take a while for the us to recover to prepandemic levels. So the growth we expect to see in mortgage rates is more likely to happen over time, not all at once.

2021 Mortgage Rate Forecast

Mortgage rates have stabilized somewhat after an up and down first few months of the year. Looking forward, they are likely to remain reasonably stable but could start to trend higher.

However, the economy still has a long way to go before it recovers to pre-pandemic levels. If we get surprised by any bad news, that could put a damper on rates.

How to Get the Lowest Mortgage Rate

Comparing home loan offers is a great way to qualify for the lowest rate.

The mortgage rate you’ll qualify for depends on a variety of factors lenders consider when assessing how the likelihood that you’ll be able to afford your monthly payments for the long term. Your credit score and debt-to-income ratio (DTI) are a big part of this decision. And your loan-to-value (LTV) ratio matters, so having a more substantial down payment is better for your interest rate.

But banks will look at your situation differently. So you can provide the same documentation to three different lenders, and receive mortgage offers with vastly different rates and fees.