Mortgage and refinance charges right now, March 20th, and rate of interest forecast for subsequent week

Today's mortgage and refinance rates

Average mortgage rates were flat yesterday. Of course, these rates remain extremely low by historical standards. However, according to Freddie Mac, a rising trend in 2021 means they are now hitting their highest level since July 2020. And Mortgage News Daily predicts they will hit "almost a year high".

Unfortunately, we seem to be stuck in a slightly increasing trend. So Mortgage rates could rise again slightly next week.

Find and lock a low rate (March 20, 2021)

Current mortgage and refinancing rates

Mortgage rates

Conventional set for 30 years

Conventional 15 years fixed

Conventional set for 20 years

Conventional 10 years fixed

Fixed FTA for 30 years

Fixed FTA for 15 years
+ 0.02%

5 years ARM FHA

30 years permanent VA

15 years fixed VA

5 years ARM VA

Prices are provided by our partner network and may not reflect the market. Your rate could be different. Click here for a personalized price offer. See our tariff assumptions here.

Find and lock a low rate (March 20, 2021)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on how coronavirus is affecting your home loan, click here.

Should You Lock A Mortgage Rate Today?

The forces that raised mortgage rates this year are still strong. And on the horizon there are hardly any signs of what could counteract them.

So my recommendations remain:

LOCK when you approach 7th DaysLOCK when you approach 15th DaysLOCK when you approach 30th DaysLOCK when you approach 45 DaysLOCK when you approach 60 Days

With so much uncertainty right now, however, your instincts could easily prove to be as good as mine – or better. So let your gut and your personal risk tolerance guide you.

What is driving current mortgage rates?

The main reason for the rise in mortgage rates is that the economic recovery appears to be gaining momentum. Many consumers have already received $ 1.9 trillion in payments under the President's American Rescue Plan Act. And soon more will flow into the economy when public authorities start issuing their shares.

In the meantime, the adoption of the vaccine continues to grow. As of March 18, "75 million have received at least one dose – that's 30 percent of the population aged 18 and over – while 41 million are considered fully vaccinated," Newsweek said. That gives even more hope for economic recovery.

Of course, nothing is certain. And if this recovery falters, mortgage rates could fall again. Deciding when to get banned, however, is a chance-based game. And chances are, better times – and higher mortgage rates – are good. At his press conference last week, Federal Reserve Chairman Jerome Powell predicted 6.5% growth in 2021, the highest level since Ronald Reagan in the White House.

Fears of inflation are reappearing

But not everyone was happy with this press conference. And some investors fear that such high growth will cause the economy to get too hot, which can lead to inflation.

Individuals with long-term fixed income assets (e.g., mortgage-backed securities) hate inflation. So you're selling bonds, which inevitably (if not intuitively) drives up yields and interest rates.

So mortgage borrowers are hit with a double blow. Higher interest rates as a result of the emerging recovery and inflation fears.

Economic reports next week

Watch out for next Friday. As markets may react to personal income, consumer spending, and core inflation reports for that day, as well as the consumer sentiment index.

Investors and analysts are less interested in next week's other reports. Unless these reports differ greatly from expectations. Even smaller publications can move markets if they contain unexpected news.

Here are next week's key economic reports:

Monday – February sales of existing houses Tuesday – February sales of new houses Wednesday – February Orders of durable goods. Plus March Markit Services and Manufacturing Purchasing Managers Indices Thursday – Weekly New Unemployment Insurance Claims Friday – February Personal Income, Consumer Spending and Core Inflation Reports. Plus March consumer sentiment index

Typically, the markets react to unexpectedly good news with higher mortgage rates. You usually see lower rates when the numbers are bad. But it takes a lot to get them far.

Find and lock a low rate (March 20, 2021)

Mortgage rates forecast for next week

Unfortunately, I don't see any reason to believe that next week will be any different than it has been in recent weeks. And I expect mortgage interest rates to rise steadily, but modestly.

Mortgage and refinance rates usually move together. Note, however, that refinancing rates are currently slightly higher than those for purchase mortgages. This gap is likely to remain constant as it changes.

Meanwhile, a recent change in regulations has made most investment property and vacation home mortgages more expensive.

How is your mortgage rate determined?

Mortgage and refinancing rates are generally determined by the prices on a secondary market (similar to stock or bond markets) where mortgage-backed securities are traded.

And that depends a lot on the economy. Therefore, mortgage rates are typically high when things are going well and low when the economy is in trouble.

Your part

However, they play a huge role in determining your own mortgage rate in five ways. You can significantly affect it by:

Shopping for Your Best Mortgage Rate – They vary widely from lender to lender. Boost your credit score. – Even a small bump can make a big difference to your interest rate and payments. Save the biggest deposit you can. – Lenders want you to have real skin in this game of your other modest borrowings – The lower your other monthly obligations, the higher the mortgage you can afford. Choose your mortgage carefully. – Are you better off with a conventional, FHA, VA, USDA, Jumbo, or any other loan?

The time you spend getting these ducks in a row can result in you winning lower rates.

Remember, it's not just a mortgage rate

Take into account all of your upcoming home ownership costs when figuring out what a mortgage you can afford. So concentrate on your "PITI" P.rincipal (pays out the borrowed amount), Interest (the price of borrowing), (property) T.Axes and (homeowners) IInsurance. Our mortgage calculator can help you with this.

Depending on your type of mortgage and the amount of your down payment, you may also need to purchase mortgage insurance. And that can easily reach three digits every month.

But there are other potential costs. So you have to pay homeowners association membership fees if you choose to live with an HOA anywhere. And wherever you live, you should expect repair and maintenance costs. There is no landlord who can call if something goes wrong!

After all, you have a hard time forgetting about closing costs. You can see this in the Annual Percentage (APR) that you will provide. Because this effectively spreads it out over the life of your loan and makes it higher than your direct mortgage rate.

However, you may be able to get help with these closing costs and your down payment, especially if this is your first time buyer. Read:

Down payment assistance programs in each state for 2021

Mortgage rate method

The mortgage reports receive interest rates based on selected criteria from multiple credit partners on a daily basis. We'll find an average rate and an annual interest rate for each type of loan that we want to show on our chart. Since we calculate a series of average prices, this will give you a better idea of ​​what you might find in the market. We also calculate average interest rates for the same types of loans. For example, FHA was fixed with FHA. The end result is a good snapshot of the daily rates and how they change over time.

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