Banking

Today’s mortgage and refinance rates: July 28, 2021 | Still unclear when rates will start rising

Today’s mortgage rates

Mortgage type Average rate today
15-year fixed 2.36%
30-year fixed 3.27%
7/1 ARM 4.21%
10/1 ARM 4.26%
30-year FHA 2.60%
VA mortgage loan 2.69%

Conventional rates from Money.com; government-backed rates from RedVentures.

Today’s refinance rates

Mortgage type Average rate today
15-year fixed 2.51%
30-year fixed 3.51%
7/1 ARM 4.52%
10/1 ARM 4.54%
30-year FHA 2.63%
VA mortgage loan 2.75%

Conventional rates from Money.com; government-backed rates from RedVentures.

Mortgage interest rates forecast

Mortgage rates tend to be low when the economy is struggling. Unemployment numbers have been high in the US since the beginning of the coronavirus pandemic, which is one reason mortgage rates have been low.

The US has added jobs over the past several months as Americans get vaccinated and businesses reopen. This improvement has been relatively short-term so far, though, so mortgage rates haven’t risen in response yet.

Federal enhanced unemployment benefits will end in September, and some states have already cut these benefits early. It’s possible that the end of pandemic unemployment benefits will push Americans to go back to work and boost employment numbers. If that’s the case, we could see mortgage rates go up in the fall.

However, the states that have already cut enhanced unemployment insurance have not seen a spike in job growth yet. It’s unclear whether the end of these benefits nationwide will have the positive impact on employment that many are hoping for.

It’s possible that mortgage rates will go up in the fall, but it’s far from guaranteed.

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