Today’s mortgage and refinancing rates: September 1, 2021

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The current mortgage rates

Mortgage type Average price today
Fixed for 15 years 2.38%
30 years 3.24%
7/1 ARM 4.14%
10/1 ARM 4.09%
30 years of FHA 2.62%
VA mortgage loan 2.67%

Conventional Tariffs from Money.com; government-sponsored rates from RedVentures.

Today’s refinancing rates

Mortgage type Average price today
15 years fixed 2.50%
30 years 3.39%
7/1 ARM 4.48%
10/1 ARM 3.84%
30 years of FHA 2.63%
VA mortgage loan 2.70%

Conventional Tariffs from Money.com; government-sponsored rates from RedVentures.

Mortgage Interest Forecast

There’s still a lot in the air on mortgage rates, but they could be a few inches higher later in 2021.

Last week,

Federal Reserve
Chairman Jerome Powell said the Fed could start reducing its asset purchases later this year. When the economy struggles like it did during the COVID-19 pandemic, the Fed is more aggressively buying assets to prop up the economy.

However, the US has been recovering gradually over the past few months, so the Fed could announce that it will curb asset purchases at its next meeting on September 21-22.

How does this affect mortgage rates?

Mortgage rates could rise once the Fed starts buying fewer mortgage-backed securities. However, the Fed announced that the economy is not strong enough that it will raise the key rate anytime soon. This could be a sign that mortgage rates will not rise much higher as rates tend to stay low when the economy is weak.


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