What Are Mortgage Rates Today
On Friday, January 29, 2021, mortgage rates in Texas are holding in the mid-to-high 2% range.
You can view JVM Lending’s current mortgage rates for Texas loans on our website here. Our team updates these mortgage rate scenarios daily; however, our team is also available seven days a week for any questions or custom interest rate scenarios you may need as you plan your homebuying process.
According to NerdWallet, the average mortgage interest rate nationwide for a 30-year fixed-rate loan is 2.729%. The average APR on a 30-year fixed-rate mortgage fell four basis points to 2.79%.
As the markets adjust to the Biden-Harris Administration and optimistic COVID vaccine news, mortgage rates decreased marginally this week. While home prices across the nation continue to rise due to a strong seller’s market, the competition to buy reaches a heightened frenzy.
Will Mortgage Rates Go Down
Interest rates typically correlate to the 10 Year Treasury Bond, but this year, that correlation has not been nearly as tight as it has been in the years past.
10 Year yields were over 1.6% in early 2020, but they fell to as low as 0.52% in response to the COVID crisis (weak economic news tends to push rates down, as a reminder). 10 Year yields recently edged back up in the fall, hovering in the 0.9% range.
This Yahoo News Column explains why this happened.
With the Democrats in control of the House, the Senate, and the Presidency, even more spending is likely.
This is because whenever one party controls the legislature and the executive branch, there is almost always more spending since there is less opposition to stop it.
As a result, investors believe there will be more spending and borrowing. This puts upward pressure on rates because the Treasury will have to offer higher yields to attract buyers in the face of a larger debt supply.
Big picture, though, this increase in rates may be short-lived, however, as many pundits believe that the Fed will be forced to do everything it can to continue to push rates lower to keep asset prices and the economy propped up.
Should You Buy A House If Rates Are Trending Up
It’s important to keep in mind that there is so much going on in today’s world that nobody really has any idea how rates will react this year. What is known is that when looking at interest rates historically, today’s rates continue to trend in a positive direction for many homebuyers and homeowners.
If you are considering purchasing a new home or refinancing a mortgage, now is a great time to take advantage of JVM Lending’s competitive mortgage interest rates. Our team is available seven days a week for any questions by phone at (855) 855-4491 and by email at firstname.lastname@example.org.
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