Current Mortgage and Refinance Rates Aren't Moving This Week. See Why | July 13, 2021

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

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Since this time last week, new mortgage rates are dropping as demand for short-term loans decreases while 30 and 15-year refinancing rates are dropping for existing homeowners.

Current mortgage refinance rates for July 13, 2021

This week’s mortgage rates reflect changing needs among buyers. While real estate investors swooped in with short-term loans early in the pandemic, traditional homeowners are picking and choosing refinancing packages that suit their needs, apparently favoring 30 and 15-year loans.

To that end, today’s refinance rates are unchanged.

• 30-year fixed refinance rates: 2.750%, unchanged from yesterday 
• 20-year fixed refinance rates: 2.750%, unchanged overnight
• 15-year fixed refinance rates: 2.250%, unchanged overnight
• 10-year fixed refinance rates: 2.125%, unchanged since yesterday

Rates last updated on July 13, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Make sure to shop around and compare rates with multiple lenders if you decide to refinance. You can do this easily with Credible’s free online tool and see prequalified rates in only three minutes.

Current mortgage rates for [Month Day, Year]

Like today’s refinance rates, current mortgage rates are completely unmoved.

• 30-year fixed mortgage rates: 2.875%, unchanged overnight
• 20-year fixed mortgage rates: 2.625%, unmoved since yesterday
• 15-year fixed mortgage rates: 2.000%, unchanged overnight
• 10-year fixed mortgage rates: 2.000%, unchanged since yesterday

Rates last updated on July 13, 2021. These rates are based on the assumptions shown here. Actual rates may vary.           

It cannot be said enough—investors are awaiting an economic recovery. Plus, loan demand changes every day. Keep in mind that certain regions of the country fluctuate at different times, driving up rates for certain loans and pushing down others.

How to qualify for a lower mortgage rate

Many factors influence the mortgage rate and terms a lender may offer you. The factors lenders will consider include:

• Your credit scores and credit history
• How much you want to borrow
• The repayment term you’re seeking
• How much downpayment you have
• Your income
• Other factors

Fortunately, you can take steps to make yourself as appealing as possible to potential lenders —  and score the best mortgage rate available to you: 

1. Pay off debt. Reducing other debts before you apply for a mortgage can help improve your credit score by reducing your debt-to-income ratio. It can also help ensure you’ll have enough disposable income to be able to make your monthly mortgage payment. 
2. Go for a shorter term.  Ten-year and 15-year mortgages tend to have the lowest interest rates. That’s because the shorter term means less risk for lenders. If you’re able to swing a higher monthly payment, a shorter term could mean a lower interest rate and big interest savings for you over the life of the loan. 
3. Put as much down as you can. Lenders —  and many sellers —  like to see a down payment of at least 20% (more if you’re able). A bigger down payment could help you get a lower rate, set you apart from other buyers, and help you avoid costly private mortgage insurance (PMI).
4. Check out first-time homebuyer programs. There are federal and state programs that help first-timers with down payments, closing costs, lower interest and more. Some even offer grants.
5. Maintain your income . Try to  avoid changing or quitting jobs before you apply for a mortgage. 
6. Consider mortgage points. Mortgage points are a closing cost that you pay to the lender up front in exchange for a lower interest rate. While the points may feel like a big hit at first, a lower interest rate could add up to big interest savings over the life of a mortgage. 

Mortgage interest rates forecast

Mortgage rates are closely tied to the federal funds rate —  the interest rate banks charge each other when borrowing or lending their excess reserves overnight. The Federal Reserve sets a target rate for banks to follow. 

When the economy isn’t great, the Fed may lower rates, and mortgage rates usually fall too, since it becomes cheaper for lenders to make loans. When the economy improves, the Fed may raise rates to try to contain inflation —  and mortgage rates could climb.

While no one can exactly forecast how mortgage rates will behave, that federal funds rate and inflation are among several key indicators that experts can consider when making predictions. Researchers  at the Mortgage Bankers Association, Freddie Mac and Fannie Mae all predict —  to varying degrees —  that  mortgage rates will rise throughout 2021. 

But keep in mind that average rates are no guarantee of the rate you might qualify for when applying for a mortgage. Your credit score, down payment amount, income and many other factors will also come into play.

For your next home purchase, consider using Credible. You can check current mortgage rates from all of our partner lenders without affecting your credit score. Our free online tool is safe and simple to use — and it only takes a few minutes to prequalify.

What causes mortgage rates to fluctuate?

• Inflation - Inflation is undefeated, but it ebbs and flows with the economy. For example, home prices in the current market are inflated due to low interest rates, but inflation a year from now will simply cause prices to rise along with the value of the dollar.
• Economic conditions - Yes, the COVID-19 pandemic caused a run on real estate, but an economic recovery could drive interest rates up and slow the real estate rush.
• The Federal Reserve - While the Fed can change rates at any time, economists believe a rate change will not happen until after the economy begins to recover.
• Origination cost - At some point, mortgage lenders will need to drop their origination costs to attract new business. Most likely, that will not happen until the current real estate rush ends.
• Your own financial/credit history - Everyone should do their best to pay down debt, improve their debt to income ratio, and increase their credit score. If you need help a lender can often run a simulator and help you understand what should be done to raise your score to the desired level.
• The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.