Today’s Mortgage and Refinance Rates, April 7th, 2021 | Rates mixed

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Mortgage interest rates were mixed this week. See below for a breakdown of how different loan types moved.

Average home loan rates
Product Rate Last week Change
30-year fixed 3.26% 3.25% +0.01
15-year fixed 2.50% 2.50% N/C
5/1 ARM 3.08% 3.08% N/C
30-year fixed jumbo 3.28% 3.26% +0.02

Rates as of April 7, 2021.

The rates listed here are marketplace averages based on the assumptions shown here. Actual rates available across the site may vary.

This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Wednesday, April 7th, 2021 at 12:30pm.

30-year fixed-rate mortgage rises

The average rate for the benchmark 30-year fixed mortgage is 3.26 percent, up 1 basis point from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.20 percent.

At the current average rate, you’ll pay $435.76 per month in principal and interest for every $100,000 you borrow. That’s $0.55 higher compared with last week.

The average rate to refinance a 30-year fixed-rate mortgage is 3.34 percent, an increase of 2 basis points over the past week. This time last month, the average rate on a 30-year mortgage was 3.26 percent.

15-year fixed mortgage stays put

The average rate for the benchmark 15-year fixed mortgage is 2.50 percent, unchanged over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $667 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 adjustable rate mortgage stays put

The average rate on a 5/1 ARM is 3.08 percent, unchanged over the last week.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.08 percent would cost about $426 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo loan interest rate climbs

Today’s average rate for jumbo mortgages is 3.28 percent, up 2 basis points over the last week. This time a month ago, the average rate on a jumbo mortgage was lesser, at 3.24 percent.

At today’s average rate, you’ll pay $436.85 per month in principal and interest for every $100,000 you borrow. That’s an increase of $1.09 over what you would have paid last week.

In summary: How mortgage rates have shifted

  • 30-year fixed mortgage rate: 3.26%, up from 3.25% last week, +0.01
  • 15-year fixed mortgage rate: 2.50%, the same as last week
  • 5/1 ARM mortgage rate: 3.08%, the same as last week
  • Jumbo mortgage rate: 3.28%, up from 3.26% last week, +0.02

Mortgage rate trend predictions for the upcoming week (April 1-7, 2021)

Mortgage experts were divided over where rates will go in the coming week (April 1-7). In response to Bankrate’s weekly poll, 46 percent said rates will rise, 38 percent think they will remain the same and just 15 percent expect them to fall.

Logan Mohtashami, housing analyst for HousingWire, believes rates will go down over the course of next week. “Lower. The 10-year yield is in a major tug of war battle between 1.64 percent and 1.75 percent. Now I believe bond yields are still too low based on our economic data. However, short term, we can’t break above 1.75 percent. We should see lower yields if this continues. Keep an eye out on that level and any good news on the vaccine. In time we should see a real 10-percent-plus correction in stocks. That is your best thesis for lower yields because it’s not economic data at all.”

How do mortgage rates affect homebuyers?

In a housing boom, low mortgage rates can present pros and cons for borrowers. One pro: Low rates give borrowers more buying power. A $300,000 loan at 4 percent equates to a monthly payment of $1,432. If rates fall to 3 percent, the payment plunges to $1,265.

One downside, however, is that a significant decline in mortgage rates can help push up home prices. Indeed, home values have increased in recent months.

Here’s one way to see the offsetting effects of soaring home prices and plunging mortgage rates. Say you decided not to buy a $300,000 home a year ago, when the 30-year mortgage rate was at about 3.75 percent. Your down payment at 20 percent would have been $60,000, and your monthly payment would have been $1,111.

Today, the price of the same home has jumped to $335,000, but you can land a 30-year loan at 3 percent. As a result, your monthly payment rises only slightly, to $1,130. However, you’ll have to come up with an extra $7,000 to make a 20 percent down payment.

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