Mortgage Interest Rates Today, March 9, 2021 | Rates Moved Upward

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Looking at today’s mortgage rates, the most significant rates climbed. The averages for both 30-year fixed and 15-year fixed mortgages both crept higher. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) were reduced.

Mortgage rates currently are:

Looking at Today’s Mortgage Refinance Rates

In a surprising move, the national average rate for a 30-year fixed refinance saw growth, while 15-year fixed-rate refinances went down. If you’ve been considering a 10-year refinance loan, just know average rates saw an increase.

Today’s refinance rates are:

Take a look at mortgage rates for different types of loan.

30-Year Fixed-Rate Mortgages

The average 30-year fixed mortgage interest rate is 3.24%, which is an increase of 4 basis points from the previous week.

You can use NextAdvisor’s home loan calculator to get an idea of what your monthly payments will be and see how much you’ll save if you make extra payments. The mortgage calculator can also show you how much interest you’ll pay over the life of the loan

15-Year Fixed-Rate Mortgages

The median rate for a 15-year fixed mortgage is 2.51%, which is an increase of 1 basis point from the same time last week.

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 pay thousands less in interest and pay off your loan much sooner.

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5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 2.98%, a slide of 2 basis points from the same time last week.

An ARM is ideal for individuals 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. Just keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

How Mortgage Rates Have Changed

To see where mortgage rates are moving we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at mortgage rate history, we’re in an exceptionally low rate environment. This table has current average rates based on information provided to Bankrate by lenders nationwide:

Rates as of March 9, 2021.

There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things including inflation and even the unemployment rate. When you see inflation increasing, that usually means mortgage rates are about to climb higher. On the other hand, lower inflation typically accompanies lower mortgage rates. With higher inflation, the dollar becomes less valuable. This scenario pushes buyers away from mortgage-backed securities, which leads to price decreases and the need for increasing yields. And higher yields require borrowers to pay higher interest rates.

The demand for housing can also impact mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of demand can drive interest rates up. And if there is less demand for mortgages, that can cause a decline in mortgage rates.

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Where Are Mortgage Rates Headed in 2021?

Recently, mortgage rates spiked and crossed 3% – a level we haven’t seen since last summer. Even with this dramatic increase, rates are near or still 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 is key to our economic recovery. If spending increases, from the government and consumers, that’s likely to drive inflation higher. And higher inflation usually leads to rising mortgage rates. But in spite of the potential for rising inflation, it’s unlikely that we’ll see skyrocketing mortgage rates in 2021. One reason for this: the Federal Reserve believes that low interest rates will help the economy rebound. So it’s unlikely to make moves that could increase rates.

Factors Influencing Today’s Mortgage Rates

There is a wide range of factors that influence mortgage rates. Some are broader economic factors, and others are related to your personal circumstances.

  • Condition of the economy
  • Federal Reserve policy decisions
  • Government and consumer spending
  • Yields for 10-year Treasury bonds
  • Rate of inflation
  • Personal financial situation: Size of your down payment, credit history, and debt-to-income ratio

How to Get the Lowest Mortgage Rate

Shopping around for a mortgage is one of the best ways to secure the lowest mortgage rate.

The mortgage rate you get depends on a number of factors lenders consider when assessing how likely you are to repay your home loan. Your credit score and debt-to-income ratio (DTI) factor into the decision. And even the property’s value compared to your mortgage balance is important. So increasing your down payment can reduce your mortgage rate.

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But lenders will consider your circumstances differently. So you can give the same documentation to three different banks, and receive mortgage offers with vastly different rates and fees.

Is Now a Good Time to Buy a Home?

There’s no “right time” to buy a house — the decision is a highly personal one. Keep in mind, when you purchase a home the monthly payment won’t be your only cost. You’ll also need enough money saved up for upfront closing costs and a down payment. And you’ll get a better deal if you have a higher credit score and lower debt-to-income ratio.

However, the pandemic has exacerbated a shortage of homes, leading to bidding wars and rising prices. Those trends mean it can be a frustrating market for buyers.

How We Got These Rates

The rates we have included are averages provided by Bankrate.com Site Averages and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same from day to day.

National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.

Mortgage Interest Rates by Loan Type

Home Purchase Rates

Mortgage Refinance Rates

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