- Mortgage rates haven’t changed dramatically since last week or last month.
- Employment and inflation must gradually improve in order for mortgage rates to rise.
- According to Marvin Loh, senior global macro strategist on State Street, rates could rise in late summer or fall.
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Some mortgage and refinance rates have increased since last week and others have decreased. The trend has been similar since that time last month – interest rates are fluctuating, but there is no significant shift up or down.
Mortgage rates can change slightly from week to week or month to month. But Marvin Loh, Senior Global Macro Strategist at Federal roadInsider said prices should remain relatively low until late summer or even into fall.
Employment and inflation need to be improved to raise mortgage rates
Mortgage rates are typically low when an economy is in trouble and high when the economy is thriving.
Employment and inflation are two factors that seriously affect mortgage rates. When employment and inflation rise, so do mortgage rates.
According to the consumer price index for April 2021 Inflation has risen since March and since that time last year. But the US would have to see a longer and more steady spike in inflation before mortgage rates would respond by spiking.
Employment numbers have improved dramatically since that time over the past year. Unemployment was 6.1% in April 2021While it was 14.8% in April 2020, immediately after the coronavirus pandemic hit the US.
But before the U.S. economy shut down in response to COVID-19, Unemployment was 3.5%. Loh said the country needed to make further progress before mortgage rates rose.
This week’s mortgage rates
This week’s refinancing rates
Most refinancing rates have either gone down or stayed the same since last week. (However, VA mortgage rates have risen.) Since that time last month, interest rates have also fluctuated a bit.
Mortgage and refinancing rates by federal state
Check the latest prices in your state at the links below.
About the author
Laura Grace Tarpley is an editor at Personal Finance Insider, specializing in mortgages, refinancing and lending. She is also a certified teacher for personal finance (CEPF). During her five years in the personal finance arena, she has written extensively on ways to navigate credit.