Today's mortgage and refinance rates: April 29, 2021 | Rates increase

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Most mortgage and refinance rates are higher today than they were last Thursday. However, most rates have gone down since this time last month. You probably don’t need to worry about rates trending upward overall anytime soon.

Marvin Loh, Senior Global Macro Strategist at State Street, told Insider he expects mortgage rates to remain fairly steady until at least fall 2021.

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Mortgage rates heavily rely on the 10-year Treasury yield, Some of the factors that affect the Treasury yield, like inflation and employment, will probably change drastically in the coming months. Loh said the market will need time to determine which shifts are short-term and which are permanent before the 10-year treasury yield increases or decreases. So rates should stay relatively low until the economy stabilizes.

With rates at all-time lows overall, it still could be a good time to lock in a rate.

Today’s mortgage rates: Thursday, April 29, 2021

Mortgage typeAverage rate today
15-year fixed2.49%
30-year fixed3.36%
7/1 ARM4.38%
10/1 ARM3.95%
30-year FHA2.94%
VA mortgage loan2.75%

Conventional rates from Money.com; government-backed rates from RedVentures.

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You can probably lock in an FHA loan, VA loan, or 15-year conventional mortgage rate under 3% today.

Rates for conventional mortgages (which might be what you think of “regular mortgages”) are low overall. But mortgages backed by the FHA and VA offer even better rates. Government-backed mortgages are great options if you’re eligible to apply.

Today’s refinance rates: Thursday, April 29, 2021

Mortgage typeAverage rate today
15-year fixed2.69%
30-year fixed3.73%
7/1 ARM4.53%
10/1 ARM4.76%
30-year FHA2.90%
VA mortgage loan2.74%

Conventional rates from Money.com; government-backed rates from RedVentures.

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Mortgage refinance rates are low in general today. The 7/1 ARM and 10/1 ARM rates are the highest rates right now.

How to lock in a low mortgage rate

Although mortgage rates have increased a little today, rates overall have been trending downward for a few weeks now. It could be a good time to lock in a low rate.

But if you aren’t ready to buy or refinance yet, you probably don’t have to worry about missing out on great rates. Mortgage rates should stay low for at least a few months. In fact, you may have time to improve your finances to land an even better rate. Consider the following steps:

  • Improve your credit score by making payments on time or paying down debt. You can request a copy of your credit report to hunt for any mistakes that could be tanking your score.
  • Save more for a down paymentThe smallest down payment you’ll require will be contingent on which type of mortgage you want. But if you can put down more than the minimum you need, you’ll likely get a better rate.
  • Decrease your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Many lenders prefer a DTI ratio of 36% or less. To improve your ratio, pay down debts or look for ways to increase your income.
  • Pick a government-backed mortgage. If you qualify, you may consider a USDA loan (aimed at low-to-moderate-income borrowers buying in a rural area), a VA loan (designed for military members and veterans), or an FHA loan (not designated for any particular group). These loans frequently have lower interest rates than conventional mortgages. Additionally, you don’t have to make a down payment for USDA or VA loans.

You can secure a low rate now if your finances are in order, but there’s no need to rush to get a mortgage or refinance if you’re not ready. 

Mortgage and refinance rates trends

Mortgage rate trends

Mortgage typeAverage rate todayAverage rate last weekAverage rate last month
15-year fixed2.49%2.45%2.63%
30-year fixed3.36%3.33%3.58%
7/1 ARM4.38%4.14%3.85%
10/1 ARM3.95%4.01%4.39%

Other than 10/1 ARM rates, mortgage rates have increased a little since last Thursday. Most rates have decreased since this time last month, though.

Refinance rate trends

Mortgage typeAverage rate todayAverage rate last weekAverage rate last month
15-year fixed2.69%2.67%2.95%
30-year fixed3.73%3.66%3.87%
7/1 ARM4.53%4.47%4.18%
10/1 ARM4.76%4.53%4.85%

Mortgage refinance rates have gone up since last Thursday. Refinance rates are lower today than they were this time last month, with the exception of 7/1 ARM rates.

How do 15-year fixed rates work?

With a 15-year fixed mortgage, you’ll pay a locked-in interest rate on your mortgage over the 15 year loan period. 

You’ll make higher monthly payments with a 15-year fixed mortgage than with a 30-year fixed mortgage, because you’re paying down the same mortgage principal in half the time. 

On the bright side, a 15-year term will cost less than a 30-year term. You’ll pay off the mortgage 15 years earlier, and you’ll get a lower interest rate.  

How do 30-year fixed rates work?

With a 30-year fixed mortgage, you’ll pay off your mortgage over 30 years, and you’ll pay the same interest rate for the life of the loan. A 30-year term has a higher interest rate than a shorter term.

You’ll pay more in interest with a 30-year fixed mortgage than with a 15-year fixed mortgage, as you’re paying a higher interest rate for an extended period. 

On the flip side, you’ll pay less per month with a 30-year term than with a 15-year fixed term, because you’re dividing your payments over more years. 

How do adjustable rates work?

An adjustable-rate mortgage, commonly referred to as an ARM, will set your rate for a predefined period. Then your rate will fluctuate periodically. A 10/1 ARM keeps your rate constant for a decade, then your rate will vary annually. 

You may want a fixed-rate mortgage over an ARM, even though ARM rates are now at historic lows. The 30-year fixed rates are lower than ARM rates, so it could be the right time to lock in a low rate with a fixed mortgage. Additionally, you won’t chance an ARM rate increase down the line.

If you’re considering getting an ARM, discuss with your lender what your rates would be if you chose a fixed-rate versus an adjustable-rate mortgage.

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

Best Mortgage Rates Today: Thursday April 29, 2021

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