April 13, 2021

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Mortgage News

Mortgage Rates Today, March 13 & Rate Forecast For Next Week

Today’s mortgage and refinance rates

Average mortgage rates rose yesterday. This week there has been a lot of daily ups and downs. Overall, however, the increase was quite modest.

Nevertheless, the cumulative increases in recent months have taken their toll. In fact, the Mortgage News Daily was forecasting its highest level in a year yesterday. And right now they seem to keep climbing. So I expect that Mortgage rates will rise again slightly next week.

Find and lock a low rate (March 13, 2021)

Current mortgage and refinancing rates

program Mortgage rates APR * change
Conventional set for 30 years 3,183%. 3,186%. + 0.02%
Conventional 15 years fixed 2,613%. 2,622%. Unchanged
Conventional set for 20 years 3,106%. 3.113%. + 0.23%
Conventional 10 years fixed 2.51%. 2.55%. + 0.1%
Fixed FTA for 30 years 3,001%. 3,683%. + 0.04%
Fixed FTA for 15 years 2.665%. 3,249%. + 0.08%
5 years ARM FHA 2.575%. 3,254%. + 0.03%
30 years permanent VA 2.625%. 2.8%. + 0.13%
15 years fixed VA 2.25%. 2.571%. Unchanged
5 years ARM VA 2.5%. 2.406%. Unchanged
Prices are provided by our partner network and may not reflect the market. Your rate could be different. Click here for a personalized price offer. See our tariff assumptions Here.

Find and lock a low rate (March 13, 2021)


COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on how coronavirus can affect your home loan, Click here.

Should You Lock A Mortgage Rate Today?

The trend in mortgage rates has been positive so far this year. And I currently see no reason to believe that it will suddenly be reversed. Of course, such a reversal is not impossible; just unlikely.

So my recommendations remain:

  • LOCK when you approach 7th Days
  • LOCK when you approach 15th Days
  • LOCK when you approach 30th Days
  • LOCK when you approach 45 Days
  • LOCK when you approach 60 Days

With so much uncertainty right now, however, your instincts could easily prove to be as good as mine – or better. So let your gut and your personal risk tolerance guide you.

What is driving current mortgage rates?

It was the economic impact of the pandemic that caused mortgage rates to drop to several new lows over the past year. And it is the prospect of post-pandemic recovery that is now propelling them.

This week this recovery has received two serious impulses. First, the $ 1.9 trillion American Rescue Plan Act of 2021 became law. That should flood the economy with cash, much of which is quickly spent.

Second, President Joe Biden revealed his schedule for the vaccine launch. Every American adult should have access to one by May 1st. And there is hope that life will be almost back to normal by July 4th. Meanwhile, COVID-19 numbers for new cases, hospitalizations and deaths keep falling.

The economic recovery therefore seems to be becoming more and more certain and will come sooner than previously expected. And that means safer mortgage rate hikes faster than we once thought.

Fears of inflation are disappearing

Last week we discussed investor fears that future inflation could further fuel mortgage rate hikes. However, those fears disappeared mid-week when the consumer price index for February was released. This showed lower inflation this month than most analysts expected.

However, those fears could reappear as quickly as they disappeared. And if they do, they are likely to accelerate the rise in mortgage rates.

Nothing is safe

Although everything looks fair for recovery right now, something is happening. And nobody knows what the future will bring.

For example, some economists think that the stock market is in the bubble zone. And if that failed, we could see lower mortgage rates.

More frightening is the possible emergence of a vaccine-resistant variant of SARS-CoV-2, the virus that causes COVID-19. Scientists seem confident that they can quickly revise existing vaccines to counter such a case. But it would take some time to implement. And that would cause the recovery to stall and likely lower mortgage rates.

Both (and there are others) are possibilities rather than probabilities. And the smart money for rest is fine. Hence, I wouldn’t recommend using it as an excuse to delay your mortgage rate freeze.

Economic reports next week

Tuesday is the big day for next week’s economic reports. The figures for retail sales and industrial production are available on that day.

But Wednesday is also important for the markets. Because Federal Reserve Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET after the final meeting of the main Fed Policy Committee, the Federal Open Market Committee (FOMC). Investors may well react to what was said both there and in the documentation released 30 minutes earlier.

The markets could shake off other reports this week. However, data can have an impact if it deviates significantly from expectations.

Here are next week’s key economic reports:

  • Tuesday – February retail sales and industrial production
  • Wednesday – February start of housing and building permit. Plus this FOMC press conference and release
  • Thursday – Weekly new unemployment insurance entitlements.

Typically, the markets react to unexpectedly good news with higher mortgage rates. You usually see lower rates when the numbers are bad. But it takes a lot to get them far.

Find and lock a low rate (March 13, 2021)

Mortgage rates forecast for next week

It has been a groundhog for mortgage rates in recent months: most small increases easily outweigh most small falls. And I don’t expect that to change this week.

Mortgage and refinance rates usually move together. Note, however, that refinancing rates are currently slightly higher than those for purchase mortgages. This gap is likely to remain constant as it changes.

How is your mortgage rate determined?

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

And that depends a lot on the economy. Therefore, mortgage rates are typically high when things are going well and low when the economy is in trouble.

Your part

However, they play a huge role in determining your own mortgage rate in five ways. You can significantly affect it by:

  1. Shopping for Your Best Mortgage Rate – They vary widely from lender to lender
  2. Boost Your Credit Score – Even a small bump can make a big difference to your rate and payments
  3. Save the biggest down payment you can – lenders like you have real skin in this game
  4. Keep Your Other Loans Modest – The lower your other monthly obligations, the larger the mortgage you can afford
  5. Carefully Choosing Your Mortgage – Are You Better Off With a Conventional, FHA, VA, USDA, Jumbo, or Any Other Loan?

The time you spend getting these ducks in a row can result in you winning lower rates.

Remember, it’s not just a mortgage rate

Be sure to consider all of your upcoming home ownership costs when figuring out what a mortgage you can afford. So concentrate on your “PITI” P.rincipal (pays out the borrowed amount), Interest (the price of borrowing), (property) T.Axes and (homeowners) IInsurance. Our Mortgage calculator can help with that.

Depending on your type of mortgage and the amount of your down payment, you may also need to purchase mortgage insurance. And that can easily reach three digits every month.

But there are other potential costs. So you have to pay homeowners association membership fees if you choose to live with an HOA anywhere. And wherever you live, you should expect repair and maintenance costs. There is no landlord who calls when something goes wrong!

After all, you have a hard time forgetting about closing costs. You can see this in the Annual Percentage (APR) you provide. Because that effectively spreads them out over the life of your loan and makes them higher than your direct mortgage rate.

However, you may be able to get help with these closing costs and Your deposit, especially if you are a first time buyer. Read:

Down payment assistance programs in each state for 2021

Mortgage rate method

The mortgage reports get interest rates based on selected criteria from multiple credit partners every day. We’ll find an average rate and an annual interest rate for each type of loan that we want to show on our chart. Since we calculate a series of average prices, this will give you a better idea of ​​what you might find in the market. We also calculate average interest rates for the same types of loans. For example, FHA was fixed with FHA. The end result is a good snapshot of the daily rates and how they change over time.