The average rate on a 15-year fixed mortgage has been essentially holding steady since mid-April. It’s remained at 2.47 percent for the last few weeks, and hasn’t moved more than 3 basis points from that mark since the week of April 15.
Since the start of the coronavirus pandemic, mortgage rates have remained consistently low, leading to a wave of refinancing and encouraging a rush of home purchases around the country.
These steady, low 15-year rates are great news for homeowners looking to refinance and buyers hoping to save on interest.
Interest rates on 15-year loans are generally lower than those on 30-year mortgages, and with less time to compound, they almost always save borrowers significant money in interest. But that comes at a cost in the form of higher monthly payments. On a $300,000 loan, a 15-year mortgage holder could save around $100,000 in interest overall compared to a 30-year loan, but the monthly payments will be hundreds of dollars more.
It’s unlikely that this slew of low rates will last much longer. Experts predict 2021 will close the year with rates at higher levels, though most experts in Bankrate’s weekly poll, expect rates to stagnate for at least another week, and possibly longer.
“This week we will see rates flat,” said Dick Lepre, senior loan officer at RPM Mortgage, Inc., in Alamo, California. “Rates will be flat through September but with annoying moves up and down in a market lacking consensus.”