Today’s mortgage rates continue downward trend | March 2, 2021

Mortgage Rate Forecast For March 2021: Rates Expected To Move Higher

Today’s mortgage rates continue downward trend | March 2, 2021

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A brutal winter is winding down, and spring homebuying season is approaching. How are mortgage rates shaping up for this month? After steep increases in February, housing economists also see rates ticking higher in the weeks ahead.

One expert who isn’t optimistic about reduced rates in the short term is Lawrence Yun, chief economist for the National Association of Realtors in Washington, D.C.

“Mortgage rates will be higher in March. The prospect for economic recovery is strengthening and thereby lessening the hold on safe U.S. Treasury yields,” he says. “In addition, more stimulus and the accompanying higher national debt will place upward pressure on inflation. Consequently, long-term interest rates, including the benchmark 30-year fixed rate, will be rising.”

Yun envisions that benchmark rate averaging 3 percent in March before creeping up to 3.2 percent by summer and hitting 3.5 percent a year from now.

Daryl Fairweather, chief economist for Seattle-based Redfin, concurs with that forecast.

“Mortgage rates have started to rise in the last few weeks. They will ly stay just above 3 percent through the end of March,” she predicts.

Mortgage rates are expected to inch higher on increased optimism about the economic recovery as well as continued concern about inflation in the near future.

“There is a greater lihood of rates heading higher rather than lower as vaccination progresses and the economy recovers, assuming additional stimulus gets passed in Congress,” says Greg McBride, CFA, chief financial analyst for Bankrate.

Peering past the next 31 days

The good news, according to Fairweather, is that rates should hover in the low 3 percent range for the rest of 2021. Put that in historical perspective, and it’s easy to conclude that this is still a desirable outcome for borrowers. The bad news?

“It seems the days of record-low rates are over for now, although it’s hard to know exactly what will happen for the rest of the year,” she says. “But I don’t think rates will grow past what they were pre-pandemic – 3.

5 percent to 4 percent – anytime soon, if at all.

The Fed has committed to keeping its target rate for federal funds at zero, and it will probably stay that way for a long time as part of their plan to maintain a healthy economic recovery.”

Curious what leading industry organizations prognosticate? In its most recent mortgage finance forecast, the Mortgage Bankers Association foresees the 30-year fixed mortgage rate averaging 3.4 percent across 2021. By contrast, Fannie Mae and Freddie Mac, respectively, expect rate averages of 2.8 percent and 2.9 percent.

“Hopscotch” is a word McBride uses to describe the path rates will ly take back and forth for the remainder of 2021.

“Mortgage rates will be volatile throughout the year, moving lower on signs of economic weakness and heading higher on signs of vaccination progress and a return to normalcy,” says McBride.

He pegs the end-of-the-year average rate at a borrower-friendly 3.1 percent. McBride believes this is a strange economic period to analyze – a time where “bad news is good news” when it comes to the economy because it heralds more, rather than less, stimulus.

“Delays in getting additional stimulus money passed, a smaller-than-expected stimulus bill, or vaccines that prove ineffective against the latest strains of COVID represent possible catalysts for rates to retrace record lows – so keep an eye on those wild cards,” says McBride.

Yun seconds those sentiments.

“Mutation of the virus that continues to lead to unexpected jumps in hospitalization and a partial shutdown of the economy will then result in more active quantitative easing by the Fed of buying mortgage-backed securities – causing rates to slide under 3 percent,” says Yun.

But even if we see stimulus progress, vaccine success and stronger economic growth, investors will remain worried about inflation.

“Mortgage rates will ly go up as investors demand a higher yield on their investments,” Fairweather adds.

Your best strategy

Put things in proper context: Mortgage rates aren’t anticipated to fall further than they are right now. So why postpone if you can afford to buy or refinance now?

“If you have a tight monthly budget and are concerned about keeping your payments low, it might make sense to act now,” Fairweather says.

“But if you’re a buyer who has been discouraged by reports of bidding wars and overall competition in the market, rising rates could actually help bring some relief.

That’s because even small upticks in the cost of borrowing tend to decrease the number of people looking to purchase.”

Another reason to sit things out for a stretch? More inventory is expected to hit the market this spring.

“Buyers who wait a little longer could have more choices and face less competition in their home search,” she adds.

If, on the other hand, you’re eager to refinance, there’s little reason not to pull the trigger if you can lower your interest rate and afford the closing costs, suggests McBride.

Learn more:


Today’s mortgage rates continue downward trend | March 2, 2021

Today’s mortgage rates continue downward trend | March 2, 2021

data compiled by Credible Operations, Inc., NMLS Number 1681276, mortgage rates have fallen since yesterday.

  • 30-year fixed mortgage rates: 3.000%, Unchanging
  • 20-year fixed mortgage rates: 2.750%, Down from 2.875%, -0.125
  • 15-year fixed mortgage rates: 2.375%, Unchanging
  • 10-year fixed mortgage rates: 2.250%, Unchanging

Rates last updated on March 2, 2021. These rates are the assumptions shown here. Actual rates may vary.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:

  • Check out mortgage refinance rates
  • Compare home purchase rates

Browse rates from multiple lenders so you can make an informed decision about your home loan.

Looking at today’s mortgage refinance rates

Today’s mortgage refinance rates showed mixed results since yesterday. Average rates for 20-year fixed mortgages fell, while 15-year mortgages rose. These contrary changes kept the average rate across all loan types steady at 2.833% for the second straight day. If you’re considering refinancing an existing home, check out what refinance rates look :

  • 30-year fixed-rate refinance: 3.125%, Unchanging
  • 20-year fixed-rate refinance: 2.875%, Down from 3.000%, -0.125
  • 15-year fixed-rate refinance: 2.500%, Up from 2.375%, +0.125
  • 10-year fixed-rate refinance: 2.375%, Unchanging

Rates last updated on March 2, 2021. These rates are the assumptions shown here. Actual rates may vary.

A site Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.

Current mortgage rates

Mortgage interest rates fell slightly again today, with the average rate across all loan types falling to 2.708%. Only 30-year mortgages remain at 3%.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.000%. This is the same as yesterday.

Current 20-year mortgage rates

The current interest rate for a 20-year fixed-rate mortgage is 2.750%. This is down from yesterday.

Current 15-year mortgage rates

The current interest rate for a 15-year fixed-rate mortgage is 2.375%. This is the same as yesterday.

Current 10-year mortgage rates

The current interest rate for a 10-year fixed-rate mortgage is 2.250%. This is the same as yesterday.

You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.

Rates last updated on March 2, 2021. These rates are the assumptions shown here. Actual rates may vary.

How mortgage rates have changed

Today, mortgage rates are up compared to this time last week.

  • 30-year fixed mortgage rates: 3.000%, the same as last week 
  • 20-year fixed mortgage rates: 2.750%, down from 2.875% last week, -0.125
  • 15-year fixed mortgage rates: 2.375%, up from 2.250% last week, +0.125
  • 10-year fixed mortgage rates: 2.250%, the same as last week

Rates last updated on March 2, 2021. These rates are the assumptions shown here. Actual rates may vary.

If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

How to get low mortgage rates

Current mortgage and refinance rates are affected by many economic factors, unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered.

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

  • Improving your credit score
  • Paying down debt
  • Making a bigger down payment

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote — and an average of $3,000 by comparing five rate quotes.

Credible can help you compare current rates from multiple mortgage lenders at once in just a few minutes. Are you looking to refinance an existing home? Use Credible’s online tools to compare rates and get prequalified today.

Mortgage interest rates by loan type

Whether you’re a first-time homebuyer shopping for a 30- or 15-year mortgage, or you’re looking to refinance an existing home, Credible can help you find the right mortgage for your financial goals.

Before you fill out your mortgage application, check out these loan rates, which you’ll be able to compare by annual percentage rate (APR) as well as interest rate:

Mortgage refinance:

Home purchase:


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