Mortgage rates today, March 27 and rate forecasts for next week

Current mortgage and refinancing rates

Average mortgage rates increased yesterday. It was the first increase in over a week. And that barely made a dent in those recent falls.

Unfortunately, this increase may not be the last. And I expect the 2021 uptrend to pick up again, probably right away. Therefore mortgage rates could rise slightly next week. Hopefully I’m wrong – as I was when I made the same prediction last week.

Find and lock a great rate (May 19, 2021)

Current mortgage and refinancing rates

Program Mortgage rate APR* Switch
Conventional 30 years fixed 3.093% 3.098% + 0.03%
Conventional 15 years fixed 2.25% 2.367% -0.03%
Conventional 20 years fixed 2.781% 2,873% Unchanged
Conventional 10 years fixed 1,924% 2.101% -0.01%
30 years FHA fixed 2.813% 3.47% Unchanged
15-year fixed FHA 2,529% 3.13% + 0.03%
ARM FHA 5 years 2.5% 3,201% Unchanged
Fixed VA 30 years 2,431% 2.604% -0.07%
15-year fixed VA 2.25% 2,571% Unchanged
5-year VA ARM 2.5% 2.379% Unchanged
Prices are provided by our network of partners and may not reflect the market. Your rate may be different. Click here for a personalized quote. See our rate assumptions here.

Find and lock a great rate (May 19, 2021)

COVID-19 Mortgage Updates: Mortgage lenders change rates and rules due to COVID-19. To see the latest news on the impact of the coronavirus on your home loan, click here.

Should you lock in a mortgage rate today?

Some economists attribute this week’s drops to technical reasons. Large investors often use the end of each calendar quarter to reassess and rebalance their portfolios. And they could explain the lower rates.

If so, the lull in increases will be temporary. And yesterday’s rise could herald a resumption (now or soon) of the uptrend. Read on to find out why the underlying drivers of this trend remain strong.

So my recommendations remain:

  • LOCK in case of closure 7 days
  • LOCK in case of closure 15 days
  • LOCK in case of closure 30 days
  • LOCK in case of closure 45 days
  • LOCK in case of closure 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine – or better. So let your instincts and your personal risk tolerance guide you.

What drives current mortgage rates

We all want to believe that this week’s drop in mortgage rates marked the start of a new trend that will bring new all-time lows. But I’m afraid that’s unlikely.

The explanation I offered earlier (investors rebalancing their portfolios at the end of the quarter) seems more likely to me. And other factors may have added to that.

For example, some economic data has been disappointing recently. If that data pointed to underlying issues, we might indeed see further rate cuts. But most of those numbers were due to extreme weather conditions in February (think Texas) rather than lingering economic problems.

Of course we do, especially with employment. But the economic recovery appears to be accelerating and will likely lead to a boom. And as long as investors see this as the case, they will likely drive mortgage rates up. So in the absence of a cataclysmic event that undermines the recovery, chances are we have months of hikes ahead of us.

Do not despair. As recently as 2008, if you had told your parents or grandparents that you would ever have a mortgage with a rate that started with a 3, they would have thought you were delusional. And, by historical standards, current rates are still ridiculously low.

Economic reports next week

Again, Friday is the big day for next week. This is when the monthly employment situation report is published. And this is arguably the most important report of all at the moment.

Investors and analysts are less likely to care much about next week’s other reports. Unless it differs greatly from expectations. Even minor reports can move markets if they contain unexpected information.

Here are the main economic reports for next week:

  • Tuesday – January Case-Shiller National House Price Index and March Consumer Confidence Index
  • Wednesday – March ADP Employment Report (Private Sector Jobs)
  • Thursday – New weekly unemployment insurance claims. Plus the March Supply Management Institute (ISM) manufacturing index and motor vehicle sales with February construction spending
  • Employment situation report from Friday to March, including non-farm payroll, unemployment rate and average hourly earnings

Typically, markets react to unexpected good news with higher mortgage rates. You usually see lower rates if the numbers are bad. But it takes a lot to move them forward.

Find and lock a great rate (May 19, 2021)

Mortgage interest rate forecast for next week

Sadly, I think we’ll look back and see this week’s drops as a little scribble in a graphical line that continues to rise. In other words, I think mortgage rates set to resume their hikes next week, although a few days of falls are not surprising.

Mortgage and refinancing rates generally move in tandem. But note that refinancing rates are currently a bit higher than those for purchase mortgages. This gap will likely remain constant as they evolve.

In the meantime, a recent regulatory change has made most mortgages for investment property and vacation homes more expensive.

How your mortgage interest rate is determined

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

And it depends heavily on the economy. Mortgage rates therefore tend to be high when things are going well and low when the economy is struggling.

Your part

But you play an important role in determining your own mortgage rate in five ways. You can significantly affect it by:

  1. Find Your Best Mortgage Rate – They Vary Dramatically From Lender to Lender
  2. Improving Your Credit Score – Even a Small Increase Can Make a Big Difference in Your Rate and Payments
  3. Save the Biggest Down Payment Possible – Lenders love you to have real skin in this game
  4. Keep your other loans small – The lower your other monthly commitments, the more mortgage you can afford
  5. Choosing Your Mortgage Carefully – Are You Better With A Conventional, FHA, VA, USDA, Jumbo Or Other Loan?

Time spent catching those ducks in a row can earn you lower fares.

Remember, it’s not just a mortgage rate

Be sure to factor in all of your future homeownership costs when determining how much mortgage you can afford. So focus on your “PITI” This is your Pmain (repays the borrowed amount), Iinterest (the price of the loan), (the property) Taxes and (owners) Insurance. Our mortgage calculator can help.

Depending on your mortgage type and the amount of your down payment, you may also need to pay for mortgage insurance. And it can easily be boiled down to three digits each month.

But there are other potential costs. You will therefore have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repair and maintenance costs. There is no owner to call when things go wrong!

Finally, you will have a hard time forgetting the closing costs. You can see those reflected in the Annual Percentage Rate (APR) that will be shown to you. Because it spreads them out efficiently over the term of your loan, making it higher than your regular mortgage rate.

But you may be able to get help with those closing costs. and your down payment, especially if you are a first-time buyer. Lily:

Down payment assistance programs in all states for 2021

Mortgage rate methodology

Mortgage Reports receive daily rates based on selected criteria from multiple lending partners. We arrive at an average rate and an APR for each type of loan to display in our graph. Because we average a range of rates, it gives you a better idea of ​​what you might find in the market. In addition, we average the rates for the same types of loans. For example, fixed FHA with fixed FHA. The end result is a good overview of daily rates and how they have changed over time.

About Teresa G. Wilson

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