This was expected given that bond prices have been volatile in the recent weeks, and bond yields often drive mortgage rates. According to Freddie Mac, the average rate for a 30-year fixed mortgage was 2.86 percent, up from 2.85 percent the previous day. The average rate for a 15-year fixed mortgage also increased, up from 2.39 percent to 2.40 percent.
In addition, the average rate for a 5/1 adjustable rate mortgage (ARM) was 3.12 percent, up slightly from 3.11 percent the previous day. For jumbo loans, the average rate stayed at 3.45 percent. However, it is important to remember that these rates can vary greatly between different lenders and loan products.
Due to the current economic environment, mortgage rates are still historically low. Low interest rates mean monthly payments are more affordable, making it easier for borrowers to purchase a home or refinance their existing mortgage. This is a very attractive option for many buyers, especially those who may not be able to buy a home at higher rates.
Despite the slight increase, mortgage rates remain at historically low lows, which has been a blessing for potential homeowners since March 2020. Over the past year, housing demand has remained strong due to low mortgage rates and the Federal Reserve's continued purchases of mortgage-backed securities. The Fed has also kept short-term borrowing costs near zero in order to help stimulate economic activity.
The current high demand for housing, combined with the low mortgage rates and availability of financing, has created a unique market opportunity for those looking to buy or refinance a home. With mortgage rates this low, now is the perfect time for those seeking to buy or refinance a home to do so.
In summary, mortgage and refinance rates today (April 30, 2021) have seen a slight increase from the previous day, due mainly to volatile bond yields over the past few weeks. Despite the small uptick, rates remain near historic lows, making borrowing more affordable and creating a unique buying opportunity for those looking to purchase or refinance a home in the current market. The Federal Reserve's continued stimulus efforts and ongoing purchases of mortgage-backed securities have boosted housing demand and kept rates low. Therefore, now is an optimal time for those looking to purchase a home or refinance their existing mortgage to do so.
This article was contributed on Aug 14, 2023
