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Today’s current mortgage and refinance rates: August 8, 2021

Current mortgage rates

Conventional rates from Money.com; government-backed rates from RedVentures.

Current refinance rates

Conventional rates from Money.com; government-backed rates from RedVentures.

How mortgage rates have changed

Mortgage rate trends

Conventional rates from Money.com; government-backed rates from RedVentures.

Although mortgage rates fluctuate from day to day, and even more so from week to week, they’ve stayed low overall for months now.

The highest rates available are for adjustable-rate mortgages, which experts tend not to recommend right now in favor of applying for 15 or 30-year fixed-rate loans for exactly this reason: Not only are rates for ARMs currently high, but they’re subject to increase over the life of your loan. It’s generally cheaper to lock in a low fixed rate now and be able to keep that rate as long as you have the loan.

The spread between rates is relatively wide right now: The average rate for a 15-year fixed mortgage is just 2.40%, while the average rate for a 10/1 ARM is significantly higher, at 4.45%. 

Refinance rate trends

Conventional rates from Money.com; government-backed rates from RedVentures.

The forecast for mortgage rates in 2021

Mortgage rates will probably stay low into the fall.

Mortgage rates heavily rely on employment and inflation in the US. When employment numbers and inflation improve, mortgage rates increase; when they get worse, mortgage rates decrease.

Unemployment and inflation need to have long-term, steady growth for mortgage rates to increase, though. If both continue to improve over the next couple of months, we could see higher rates.

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