Today’s mortgage and refinance rates: May 4, 2021 | Rates increase

Summary List Placement

Mortgage and refinance rates have gone up since last Tuesday but down since this time last month.

Even though rates have increased today, they’ve been trending downward overall. Rates are at historic lows, so it could be a good day to apply for preapproval so you can lock in a rate.

You’ll probably be able to get a low rate even if you wait a few months to apply for preapproval, though. The Federal Reserve met last week and agreed to keep the federal funds rate at near zero, which indicates mortgage rates should stay low for the foreseeable future.

Today’s mortgage rates: Tuesday, May 4, 2021

Mortgage type
Average rate today

15-year fixed
2.48%

30-year fixed
3.35%

7/1 ARM
4.31%

10/1 ARM
4.0%

30-year FHA
2.94%

VA mortgage loan
2.75%

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

Learn more and get offers from multiple lenders »

Mortgage rates are low across the board. For a 30-year term, you’ll get a better rate on an FHA and VA mortgage than on a conventional mortgage. Government-backed mortgages are great options if you qualify.

Today’s refinance rates: Tuesday, May 4, 2021

Mortgage type
Average rate today

15-year fixed
2.67%

30-year fixed
3.71%

7/1 ARM
4.49%

10/1 ARM
4.74%

30-year FHA
2.90%

VA mortgage loan
2.75%

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

Compare offers from refinancing lenders »

Refinance rates are typically higher than purchase mortgage rates. But today’s refinance rates are low overall.

Ways to get a low mortgage rate

Although mortgage rates have ticked up since last week, in general, rates are low. You may want to lock in a low rate today. 

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You probably don’t need to rush if you’re not prepared to buy or refinance yet, as mortgage rates will likely remain low for at least a few months. You could use that time to better your financial situation and land a lower rate. Think about the following tips:

Boost your credit score by making timely payments or paying down debt. You can ask for a copy of your credit report to search for any mistakes that could be lowering your score.

Put down more for a down payment.You may be able to put down as little as 3% if you’re aiming for a conventional mortgage, but the smallest amount will depend on which type of mortgage you want. You’ll probably receive a better rate with a larger down payment.

Decrease your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. To improve your ratio, pay down debts or look for ways to boost your income.

You can lock in a low rate now if your finances are in good shape.

Mortgage and refinance rates trends
Mortgage rate trends

Mortgage type
Average rate today
Average rate last week
Average rate last month

15-year fixed
2.48%
2.44%
2.65%

30-year fixed
3.35%
3.31%
3.63%

7/1 ARM
4.31%
4.05%
4.43%

10/1 ARM
4.0%
3.85%
4.73%

Mortgage rates have increased since last Tuesday, but they’ve decreased since this time last month.

Refinance rate trends

Mortgage type
Average rate today
Average rate last week
Average rate …read more

Source:: Business Insider

      

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