Today’s mortgage rates
| Mortgage type | Average rate today |
| 15-year fixed | 2.38% |
| 30-year fixed | 3.24% |
| 7/1 ARM | 4.14% |
| 10/1 ARM | 4.09% |
| 30-year FHA | 2.62% |
| VA mortgage loan | 2.67% |
Conventional rates from Money.com; government-backed rates from RedVentures.
Today’s refinance rates
| Mortgage type | Average rate today |
| 15-year fixed | 2.50% |
| 30-year fixed | 3.39% |
| 7/1 ARM | 4.48% |
| 10/1 ARM | 3.84% |
| 30-year FHA | 2.63% |
| VA mortgage loan | 2.70% |
Conventional rates from Money.com; government-backed rates from RedVentures.
Mortgage interest rates forecast
Plenty is still up in the air for mortgage rates, but they may inch higher later in 2021.
Last week, Federal Reserve chair Jerome Powell said that the Fed could start tapering its asset purchasing later this year. When the economy struggles the way it has during the COVID-19 pandemic, the Fed buys assets more aggressively to support the economy.
The US has been gradually recovering over the past few months, though, so the Fed could announce that it will cut down on asset purchases as soon as its next meeting on September 21 and 22.
So, how does this affect mortgage rates?
Mortgage rates could increase once the Fed begins to buy fewer mortgage-backed securities. However, the Fed announced that the economy isn’t so strong that it will raise the federal funds rate anytime soon. This could be a sign that mortgage rates won’t soar significantly higher, because rates tend to stay low when the economy is weak.
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