The average rate on a 15-year fixed-rate mortgage has essentially held steady since mid-April. It has remained at 2.47% in recent weeks and has not moved more than 3 basis points since the week of April 15.
Since the onset of the coronavirus pandemic, mortgage rates have remained consistently low, causing a wave of refinancing and encouraging a rush to buy homes across the country.
These low, stable 15-year rates are great news for homeowners looking to refinance and buyers hoping to save on interest.
Interest rates on 15-year loans are generally lower than on 30-year mortgages, and with less time to compose, they almost always save borrowers a lot of money in interest. But it comes at a cost in the form of higher monthly payments. On a $ 300,000 loan, a 15-year mortgage holder could save about $ 100,000 in total interest compared to a 30-year loan, but the monthly payments will be hundreds of dollars more.
This series of low rates is unlikely to last much longer. Experts predict 2021 will end the year with rates at higher levels, although most experts in Bankrate’s weekly survey expect rates to stagnate for at least a week, if not longer.
“This week we’ll see stable rates,” said Dick Lepre, senior loan officer at RPM Mortgage, Inc., in Alamo, Calif. “Rates will remain stable until September, but with annoying up and down moves in a market lacking consensus.”