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Since last week, mortgage rates have remained largely flat for both home purchases and refinancing.

If you’re thinking about refinancing an existing home or buying a new property, check out how rates are looking this week so you can start the mortgage process before rates rise once again.

Current mortgage refinance rates for June 28, 2021

This week’s mortgage refinance rates saw a slight spike, but remained largely unchanged since last week.

  • 30-year fixed refinance rates: 2.875%, up 0.125% from last week

  • 20-year fixed refinance rates: Unchanged at 2.750% since last week

  • 15-year fixed refinance rates: Flat at 2.125% from last week

  • 10-year fixed refinance rates: Flat at 2.125% since last week

Rates last updated on June 28, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Make sure to shop around and compare rates with multiple lenders if you decide to refinance. You can do this easily with Credible’s free online tool and see prequalified rates in only three minutes.

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Story continues

The Federal Reserve did not raise rates at a meeting over a week ago, and rates are slightly fluctuating due to perceived supply and demand across the country. However, rates will surely rise in the near future as the economy reopens.

Current mortgage rates for June 28, 2021

Like today’s refinance rates, current mortgage rates are largely unchanged with a slight spike since last week.

  • 30-year fixed mortgage rates: 2.750%, unchanged from last week

  • 20-year fixed mortgage rates: 2.750%, also unchanged from last week

  • 15-year fixed mortgage rates: 2.125%, flat from last week

  • 10-year fixed mortgage rates: 2.125%, slightly up from 2.000% last week.

Rates last updated on June 28, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Mortgage rates have not changed due in large part to no rate hikes from the Fed. These rates look to hold until real estate inventory dries up further, causing rates to naturally rise. Rates may also rise as the Fed changes rates to stave off inflation.

Mortgage interest rates forecast

Mortgage rates are closely tied to the federal funds rate — the interest rate banks charge each other when borrowing or lending their excess reserves overnight. The Federal Reserve sets a target rate for banks to follow.

When the economy isn’t great, the Fed may lower rates, and mortgage rates usually fall too, since it becomes cheaper for lenders to make loans. When the economy improves, the Fed may raise rates to try to contain inflation — and mortgage rates could climb.

While no one can exactly forecast how mortgage rates will behave, that federal funds rate and inflation are among several key indicators that experts can consider when making predictions. Researchers at the Mortgage Bankers Association, Freddie Mac and Fannie Mae all predict — to varying degrees — that mortgage rates will rise throughout 2021.

But keep in mind that average rates are no guarantee of the rate you might qualify for when applying for a mortgage. Your credit score, down payment amount, income and many other factors will also come into play.

For your next home purchase, consider using Credible. You can check current mortgage rates from all of our partner lenders without affecting your credit score. Our free online tool is safe and simple to use — and it only takes a few minutes to prequalify.

What causes mortgage rates to fluctuate?

  • Inflation – lowers purchasing power, thus requiring more money to buy goods

  • Economic conditions – ex. the COVID-19 pandemic. When the economy is bad, mortgage rates are low.

  • The Federal Reserve – sets the rate at which lenders can borrow from each other.

  • Origination cost – the cost of the steps lenders take to process a loan, including running a credit check, underwriting, etc.

  • Your own financial/credit history – a lower DTI ratio, the lower your interest rates will be, because it’s less of a risk to the financial lender

How to qualify for a lower mortgage rate

Many factors influence the mortgage rate and terms a lender may offer you. The factors lenders will consider include:

  • Your credit scores and credit history

  • How much you want to borrow

  • The repayment term you’re seeking

  • How much downpayment you have

  • Your income

  • Other factors

Fortunately, you can take steps to make yourself as appealing as possible to potential lenders — and score the best mortgage rate available to you:

  • Pay off debt. Reducing other debts before you apply for a mortgage can help improve your credit score by reducing your debt-to-income ratio. It can also help ensure you’ll have enough disposable income to be able to make your monthly mortgage payment.

  • Go for a shorter term. Ten-year and 15-year mortgages tend to have the lowest interest rates. That’s because the shorter term means less risk for lenders. If you’re able to swing a higher monthly payment, a shorter term could mean a lower interest rate and big interest savings for you over the life of the loan.

  • Put as much down as you can. Lenders — and many sellers — like to see a down payment of at least 20% (more if you’re able). A bigger down payment could help you get a lower rate, set you apart from other buyers, and help you avoid costly private mortgage insurance (PMI).

  • Check out first-time homebuyer programs. There are federal and state programs that help first-timers with down payments, closing costs, lower interest and more. Some even offer grants.

  • Maintain your income . Try to avoid changing or quitting jobs before you apply for a mortgage.

  • Consider mortgage points. Mortgage points are a closing cost that you pay to the lender up front in exchange for a lower interest rate. While the points may feel like a big hit at first, a lower interest rate could add up to big interest savings over the life of a mortgage.

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