Mortgage Interest Rates Today, October 13, 2021 | Rates Moved Upward

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Looking at today’s mortgage rates a variety of notable rates moved higher. The averages for both 30-year fixed and 15-year fixed mortgages both made gains. We also saw no adjustment in the average rate of 5/1 adjustable-rate mortgages (ARM).

The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:

What this means for borrowers:
Historically low interest rates continue to be available to highly qualified borrowers. But for many buyers, getting a good rate isn’t making it any easier to find a home. There aren’t many homes for sale, so competition has caused home prices to rise. So if you’re shopping for a home, be prepared to move quickly as the few homes on the market are moving fast.

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates increase. Shorter term, 10-year fixed-rate refinance mortgages also made gains.

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

Find current mortgage rates for today.

30-Year Fixed Mortgage Interest Rates

The median interest rate for a standard, 30-year, fixed mortgage is 3.19%, which is a growth of 8 basis points from seven days ago.

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

15-Year Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 2.43%, which is an increase of 5 basis points from seven days 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 less difficult. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 Adjustable-Rate Mortgage Rates

A 5/1 ARM has an average rate of 2.79%, the same rate from the same time last week.

An ARM is ideal for households who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being noticeably 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. Keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

Mortgage Interest Rate Movement

There is a lot more that goes into overall mortgage rate trends besides your personal finances. The state of the economy, demand for housing, and government policies can all play a role.

The Federal Reserve Bank can also influence rates, although it doesn’t directly set mortgage interest rates. Currently, the Federal Reserve is purchasing billions of dollars in mortgage-backed securities (MBS) each month. This increased demand for MBS has helped to keep rates from increasing. However, as the economy recovers the Federal Reserve could announce plans to reduce the amount of securities it purchases, which would allow rates to rise.

How our mortgage interest rates are calculated

To get an idea of the current mortgage rate trends, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on mortgages where the borrower has a 740+ credit score, 20% equity or more, and the home is occupied by the owner.

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:

Today’s mortgage interest rates
Loan termToday’s RateLast weekChange
30-year mortgage rate3.19%3.11%+0.08
15-year fixed rate2.43%2.38%+0.05
30-year jumbo mortgage rate3.21%3.11%+0.10
30-year mortgage refinance rate3.17%3.08%+0.09

Rates accurate as of October 13, 2021.

Is Now a Good Time to Lock in My Mortgage Rate?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock 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 lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may offer an extension of the lock, however, you might have to pay a fee for that privilege.

What Is in the Future for Mortgage Rates?

For the past several months, mortgage rates have held steady, hovering near 3%. In the absence of any policy changes from the Federal Reserve, it appears that this trend for rates will continue. But there are indications that changes could be announced this fall, which could push rates higher, closer to the levels many experts predicted they would hit in 2021.

What happens with rates will depend on the economy. A growing economy usually goes hand in hand with rising mortgage rates. If consumer and government spending increases, that’s likely to drive inflation higher. However, the Federal Reserve believes the inflation we’re seeing is only temporary, and so rates have stayed low. But in spite of the potential for rising inflation, mortgage rates are likely to stay low this year. One reason for this: the Federal Reserve believes low rates will help our economic recovery. So it’s likely to make policy decisions in favor of keeping rates low.

2021 Mortgage Rate Forecast

Rates have stabilized after a period of fluctuation in the first few months of the year. It is expected that they will remain relatively stable in the coming weeks but may start trending upward toward the end of the year.

The economy still has a bumpy road to returning to its pre-pandemic level. So if we experience and mortgage rate increases this year, they will likely happen slowly over time.

How to Get the Lowest Mortgage Rate

Comparing mortgage offers is a great way to get the lowest rate.

Your mortgage rate depends on a number of factors lenders consider when assessing how likely you are to repay your mortgage. Your credit score impacts your mortgage rate. And your loan-to-value (LTV) ratio is also important, so having a bigger down payment is better for your interest rate.

But banks will consider your circumstances differently. So you can provide the same documentation to three different mortgage providers, and find that none of the mortgage rates and fees you are offered are the same.