With COVID-19 cases rising and as supply chain and labor challenges continue to be an issue for the housing market, Americans may see mortgage rates trend upwards, experts are predicting. While, for now, there isn’t much change to mortgage rates, there are several factors and economic events in October that may come into play when asking the question, “Will mortgage rates rise?” — the publishing of the U.S. Department of Labor September employment report and the $28.4 trillion debt ceiling facing Congress.
Currently, APR rates sit between a little over 2% and 3%; however, Americans may soon have to say goodbye to those low rates as inflation starts to take its toll.
Mortgage Rates Forecast for October 2021
As October kickstarts the fourth quarter, experts say borrowers probably won’t see much of a change to mortgage rates, at least for the first half of the month. As Americans wait for Congress to avoid defaulting and for the Department of Labor employment report to be released, that may change around midway through the month.
According to Freddie Mac, during the last week of September 2021, average mortgage rates sat at 2.88% for 30-year fixed-rate mortgages, 2.15% for 15-year fixed-rate mortgages, and 2.43% for 5/1 adjustable rate mortgages. As of September 27, 2021, Wells Fargo documented rates for 30-year fixed-rate VA loans sat at 2.728%, 30-year fixed-rate jumbo loans at 3.044%, and 2.867% for 15-year fixed-rate jumbo loans. As far as a mortgage rates forecast for October 2021 goes, Americans may see these rates remain similar throughout the first half of October but may see a slight increase toward the end of the month.
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