April 2021 mortgage rates are starting off the month near last months highs. Will that continue? It could but we are starting to see the selling in the bond market level off and if that continues we may see mortgage rates stablize in April.
The jobs report on April 2nd might end up playing a role in the direction of mortgage rates in April. A strong jobs report could spark a new round of selling in the bond market and push mortgage rates higher.
A jobs report that is in line with expectation might help stablize mortgage rates. And a weak jobs report might allow for improved mortgage rates as we move further into April.
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Opportunities And Risks For April 2021
Last month mortgage rates went up. The previous month mortgage rates went up (at the end of the month). So what’s going to happen in April?
No one knows for sure but odds are increasing that April 2021 mortgage rates will be flat too slightly improved. You should not expect this to happen and if mortgage rates do improve don’t expect them to move significantly lower.
Right now it appears the bond market is entering a wait and see phase. Waiting to see what happens with the economy and how that impacts inflation. Remember, inflation would be bad and most certainly send April 2021 mortgage rates higher.
April 2021 Mortgage Rate Forecast For California
Here are our latest April 2021 mortgage rate forecasts for California:
- 30-year fixed rates below 3.125%
- 20-year fixed rates below 2.875%
- 15-year fixed rates below 2.50%
This is based on properties in California, a loan amount of $325,000, a primary home, excellent credit (740 or higher credit score), and a Loan-To-Value ratio below 60% (purchase transactions).
We may see days in which mortgage rates spike higher however overall we believe there will be opportunities to lock a mortgage rate at or below these levels throughout the month of April.
Mortgage Rate And Payment Chart
Here is a quick reference guide to April 2021 mortgage rate possibilities in California (these are not quotes; just examples) and the payments associated with each level based on various conforming loan amounts. See our important disclosure below.
30-Year Fixed-Rate Mortgage:
|Term||Loan Amount||Mortgage Rate||Payment|
20-Year Fixed-Rate Mortgage:
|Term||Loan Amount||Mortgage Rate||Payment|
15-Year Fixed-Rate Mortgage:
|Term||Loan Amount||Mortgage Rate||Payment|
Important Disclosure For April 2021 mortgage rates: The above is not a mortgage rate quote; nor is it an offer to lend. It’s only a generic example of various mortgage rates, loan amounts, and payments. Our mortgage rate chart is meant to educate and inform our readers. The current April 2021 mortgage rate market may be higher or lower than the examples listed in these mortgage rate charts. Also; mortgage rates can and often do adjust multiple times a day.
California Mortgage Calculator
Using a mortgage calculator to figure out your monthly payment is an essential part of buying a home in California or refinancing a current mortgage. Use our free mortgage calculator to help you determine what you can afford.
With our online mortgage calculator, you can also factor in your property tax amount along with your annual homeowner’s insurance amount with your monthly mortgage payment.
Our California mortgage calculator is free and easy to use.
And our mortgage calculator is especially helpful for those who want to impound their property taxes and property insurance into their monthly mortgage payment. If you have any questions about or California mortgage calculator please don’t hesitate to ask.
April 2021 Mortgage Rate FAQ’s
Here we answer some popular questions about mortgage rates in California. The section will be updated in the coming days as more questions roll in.
Down I Need A 20% Down Payment?
No! You can buy a home with as little as 3% down on Conventional loans and 3.5% down on FHA home loans. You have down payment options, even if you are a first-time home buyer.
How Long Does A Refinance Take?
Generally speaking, 20-30 days if application volume is average. This is from the day the file is complete with an application and all requested documentation to the day a borrower signs loan documents.
If you have a subordination of a second mortgage it will probably be pushed out to 40-45 days when application volume is average.
This timeline applies to our company, other mortgage companies can take 45-60 days to complete a refinance, and if there is a subordination even longer.
Is An FHA Home Loan Right For Me?
It might be. There are a lot of benefits to FHA home loans but the loan program is not for everyone. If you have a sub 700 credit score and a small down payment you should review what the program has to offer.
Update Mortgage Guidelines April 2021
Some lenders are starting to re-start their Jumbo mortgage program which is good news for homeowners.
We’re also starting to see some lenders bring back their non-conforming loan products such as bank statement loans.
Economic Calendar For April 2021
Here we cover the daily economic events that might impact mortgage rates. After the report comes out we’ll update the post with that information and comment on if there is a potential impact on the Mortgage-Backed Securities market and consumer mortgage rates.
To start things off we have:
- ISM Manufacturing report
- ADP Employment (sometimes comes out the day before the 1st of the month)
- ISM Non-Manufacturing PMI
- BLS Employment report
Thursday – April 29th:
- Weekly Jobless Claims: Jobless claims came in at 553,000 claims and continued claims came in 3,660,000.
- GDP Advance Q1: Expectations were for the report to come in at a 6.1% increase and the actual reading came in at 6.4%.
Wednesday – April 28th:
- MBA Refinance And MBA Purchase Index: Applications for a new mortgage continued to decline in the most recent MBA survey. The Refinance Index came in at 3185.3 and the Purchase Index came in at 281.4
Tuesday – April 27th:
- Monthly Home Prices: It’s no secret to anyone, home prices have been going up significantly since last summer and that trend continued in February with a 0.9% gain.
- Consumer Confidence: The Consumer Confidence report came in at 121.7
Monday – April 26th:
- Durable Goods: This month’s Durable Goods report came in lower than expected. Expectations were for a reading of 2.3% however there report showed only a 0.5% increase. April 2021 mortgage rates responded favorably after the report.
Thursday – April 22nd:
- Weekly Jobless Claims: The weekly Jobless Claims report came in at 547,000 claims and 3,674,000 continued claims. April 2021 mortgage remained steady post report.
- Existing Home Sales: The Existing Home Sales report came in at 6,010,000 units (annual rate). Last month the report came in at 6,220,000 units (annual rate).
Wednesday – April 21st:
- MBA Purchase and MBA Refinance Index: Mortgage applications for both purchase and refinance continue to decline. The MBA Purchase Index came in at 295.5 and the MBA Refinance Index came in at 3219.9.
Friday – April 16th:
- Housing Starts: The annual rate for Housing Starts came in at 1,739,000 which is a sharp increase from the 1,421,000 reported last month.
- Consumer Sentiment: The Consumer Sentiment report increased from 84.9 to 86.5.
Thursday – April 15th:
- Philly Fed Index: Last month the Philly Fed Index report came in at 51.8 and this month it came in at 50.2. Market expectations were for a reading of 42.0
- Weekly Jobless Claims: After a few weeks of surprisingly elevated claims, the weekly Jobless Claims report came in at 576,000 claims and 3,731,000 continued claims. This is good news for the economy.
- NAHB Housing Index: Last month the NAHB Housing Index came in at 82 and this month it came in at 83.
Wednesday – April 14th:
- MBA Purchase and MBA Refinance Index: Mortgage applications for both purchase and refinance continue to decline. The MBA Purchase Index came in at 279.5 and the MBA Refinance Index came in at 2916.7.
Tuesday – April 13th:
- Core CPI: The Core CPI number came in at 1.6% after last month’s reading of 1.3%. April 2021 mortgage rates seem to take the increase in stride.
Friday – April 9th:
- Core Producer Prices: Last month the Core Producer Prices report showed an increase of 0.5% and this month the report showed a 1.00% increase.
Thursday – April 8th:
- Jobless Claims: The Jobless Claims report showed an increase in the number of Americans seeking unemployment benefits. Last week the report came in at 719,000 claims and this week it was 744,000 claims. Continued claims decreased slightly from 3,794,000 to 3,734,000. April 2021 mortgage rates were positively impacted by the report.
Wednesday – April 7th:
- MBA Purchase and MBA Refinance Index: Both the Refinance and Purchase Index declined this week. The Purchase Index came in at 283.6 and the Refinance Index came in at 3068.8.
Monday – April 5th:
- ISM Non-Manufacturing PMI: The market was expecting a reading of 59.0 and the report came in at 63.7. April 2021 mortgage rates were not impacted by the report.
Friday – April 2nd:
- Jobs Report: The market was expecting non-farm payrolls to come in at 647,000 and private payrolls to come in at 575,000 jobs however the report smashed those numbers. Non-farm payrolls came in at 916,000 jobs created and private payrolls came in at 780,000 jobs created (more on this below). This might end up having a negative impact on April 2021 mortgage rates.
Thursday – April 1st:
- Weekly Unemployment: This week’s jobless claims came in higher than last week (719k vs 650k). April 2021 mortgage rates improved slightly after the report was released.
- ISM Manufacturing PMI: The ISM Manufacturing PMI report came in strong than anticipated (64.7).
Mortgage Rates And The Monthly Jobs Report
The market is expecting non-farm payrolls to come in a 647,000 jobs created, and private payrolls to come in at 575,000 jobs.
Expectations for the unemployment rate are at 6.00% and earnings to come in at 0.1.
Heading into to the jobs report bond markets rallied. For that to continue we’ll probably need to see a report that is either inline with expectations or below expectations.
If the report shows significant job growth, above what the market is expecting, and/or a significant increase in wages that might reverse recent gains in the bond market.
Simply put, the jobs report could have a big impact on April 2021 mortgage rates.
The jobs report was a blowout in terms of the number of jobs created. However, wages declined -0.1% and the market was expecting them to increase 0.1%. The unemployment rate came in as expected, 6.0%.
So what does this mean for mortgage rates?
The initial reaction in the bond market was to sell however it appears the selling is somewhat contained. We’ll have to see what happens in the next 5-10 days but if the selling in the bond market remains contained in April 2021 mortgage rates should remain somewhat stable in the near term.
April 2021 Mortgage Rate Average In California
We’ll update this section as we move further into April however to start off the month we’re seeing the following averages.
- The average 30-year fixed mortgage rate in California is 3.00%.
- The average 20-year fixed mortgage rate is 2.75%
- The average 15-year fixed rate in California is 2.375%.
This is an average of everyone we’re seeing; from less than perfect credit to excellent credit. Please keep in mind that mortgage rates adjust daily; sometimes multiple times during a day. For a mortgage quote specific to your situation please be sure to contact us directly.
Mortgage-Backed Securities & Treasury Snapshot
April 26th – April 30th:
Mortgage-Backed Security UMBS 2.0 started the week at the 100.94 level and the UMBS 2.5 coupon started at the 103.73 level. The 10y Treasury yield was at the 1.62% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.00 level and the UMBS 2.5 coupon was nearing the 103.73 level. The 10y Treasury yield was at 1.628%.
April 19th – April 23rd:
Mortgage-Backed Security UMBS 2.0 started the week at the 100.77 level and the UMBS 2.5 coupon started at the 103.44 level. The 10y Treasury yield was at the 1.58% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.08 level and the UMBS 2.5 coupon was nearing the 103.73 level. The 10y Treasury yield was at 1.53%.
April 12th – April 16th:
Mortgage-Backed Security UMBS 2.0 started the week at the 100.39 level and the UMBS 2.5 coupon started at the 103.09 level. The 10y Treasury yield was at the 1.669% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 100.77 level and the UMBS 2.5 coupon was nearing the 103.44 level. The 10y Treasury yield was at 1.58%.
April 5th – April 9th:
Mortgage-Backed Security UMBS 2.0 started the week at the 99.67 level and the UMBS 2.5 coupon started at the 102.52 level. The 10y Treasury yield was at the 1.713% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 100.50 level and the UMBS 2.5 coupon was nearing the 103.17 level. The 10y Treasury yield was at 1.662%.
April 1st – April 2nd:
Mortgage-Backed Security UMBS 2.0 started the month at the 99.98 level and the UMBS 2.5 coupon started at the 102.72 level. The 10y Treasury yield was at the 1.67% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 99.75 level and the UMBS 2.5 coupon was nearing the 102.56 level. The 10y Treasury yield was at 1.714%.