Wednesday, August 4

Today’s mortgage and refinance rates: July 17, 2021

Today’s mortgage rates

Conventional rates from; government-backed rates from RedVentures.

Today’s refinance rates

Conventional rates from; government-backed rates from RedVentures.

Mortgage interest rates forecast

Mortgage rates typically reflect the state of the US economy. Mortgage rates are high when the economy is strong and low when it’s struggling.

Rates have been at all-time lows since spring 2020, because the coronavirus pandemic has hurt the US economy. However, it’s possible rates will increase later in 2021 if the economy continues to bounce back. Inflation has a huge impact on the economy — when Inflation goes up, mortgage rates can follow suit.

On Monday, the Bureau of Labor Statistics released the June Consumer Price Index Summary, which is a common tool for measuring inflation. The report showed that inflation increased 0.9% from May to June. This bump surpassed expectations of 0.5%, and it’s the largest month-to-month increase since April 2008.

Mortgage rates aren’t immediately going up in response to higher inflation, though. Many politicians and economists say that inflation is spiking as businesses reopen and more Americans get vaccinated. But as reopening becomes the norm, they predict inflation will slow back down.

You likely have more time to lock in a low mortgage rate. But if inflation continues to go up, mortgage rates could increase later this year.

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