According to The Mortgage Reports, today's average 30-year mortgage rate is 3.107%, up slightly from last week's average of 3.095%. While this is still an incredibly low rate, it's important for borrowers who are looking to take advantage of the extremely low interest rates to act quickly.
The 15-year fixed-rate mortgage also has a slight increase today, with an average of 2.43%. Adjustable-rate mortgages (ARMs) are following suit as well, with the 5/1 ARM at an average rate of 2.70%.
Refinance rates continue to be attractive as well, with the 30-year refinance fixed-rate mortgage only slightly higher than the purchase rate, at an average of 3.126%.
It was just over a year ago that the US began to see the effects of the COVID-19 pandemic on the economy. This led to rates dropping significantly, and lenders offering incentives to borrowers looking to secure a mortgage or refinance their existing loan.
This trend has continued into 2021. Despite the slight increase in rates in the last month, lending institutions are still offering competitive rates and programs tailored to different types of borrowers. Borrowers who are looking to purchase a home should consider reaching out to multiple lenders, as some may have lower rates and programs available.
The key takeaway here is that while mortgagae and refinance rates may have slowly begun to inch up, they remain at extremely low levels. This presents borrowers with a great opportunity, as they can secure a mortgage or refinance at a low rate. Homebuyers should research what lenders are offering and shop around to get the best rate and terms.
Analysis:
The mortgage and refinance rates in the United States remain at record lows, with the 30-year mortgage rate currently averaging 3.107%. This rate is slightly above the 3.095% average of last week, however it is still incredibly low. It is important for those interested in taking advantage of these low rates to act quickly as the rates may continue to rise. Other mortgage types such as the 15-year fixed-rate mortgage, adjustable-rate mortgages (ARMs), and refinance rates remain relatively low as well.
This current trend can be attributed to the significant effects of the COVID-19 pandemic on the US economy over the past year. This pandemic has led to lenders offering more competitive rates and incentive programs for borrowers seeking to secure a mortgage or refinance their existing loan.
Though the mortgage and refinance rates are slowly increasing, they remain at extremely appealing levels that present borrowers with an excellent opportunity to get a good deal. Any one looking to purchase a home or refinance should look around to find the best rate and terms for their specific needs and reach out to multiple lenders for the most competitive offers.
This article was contributed on Dec 19, 2023
