August 2021 mortgage rates are at previous lows as concerns grow over the new Delta variant. Around the world cases are increasing and the United States is also seeing a massive increase in the number of cases.

30-year, 20-year and 15-year fixed rate mortgages are very attractive right now for both purchase and refinance transactions.

Opportunities And Risks For August 2021

Starting off the month we’re seeing August 2021 mortgage rates return to previous lows as concerns over the economic impact from the recent surge in COVID cases. Prior to that there were signs the economy was doing well and inflation seemed to easy heading into the summer months.

Will August 2021 mortgage rates move lower if cases continue to climb?

Possibly but the improvements will probably be small due to the demand for current mortgage rate levels. If you are offered a mortgage rate that makes sense you should not hesitate to lock that in because if cases decrease (significantly) you’ll probably a noticeable jump in mortgage rates.

August 2021 Mortgage Rate Forecast For California

Here are our latest August 2021 mortgage rate forecasts for California:

30-year fixed rates below 2.75%
20-year fixed rates below 2.625%
15-year fixed rates below 2.125%

Our August 2021 mortgage rate forecast is based on properties in California, a loan amount of $350,000, 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 August.

Mortgage Rate And Payment Chart

Here is a quick reference guide to August 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
30-year fixed	$210,000	2.625%	$843.47
30-year fixed	$310,000	2.625%	$1,245.12
30-year fixed	$410,000	2.625%	$1,646.77
30-year fixed	$510,000	2.625%	$2,048.42

20-Year Fixed-Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
20-year fixed	$210,000	2.375%	$1,100.05
20-year fixed	$310,000	2.375%	$1,623.89
20-year fixed	$410,000	2.375%	$2,147.72
20-year fixed	$510,000	2.375%	$2,671.56

15-Year Fixed-Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
15-year fixed	$210,000	2.00%	$1,351.37
15-year fixed	$310,000	2.00%	$1,994.88
15-year fixed	$410,000	2.00%	$2,638.39
15-year fixed	$510,000	2.00%	$3,281.89

Important Disclosure For August 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 August 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.

Update Mortgage Guidelines August 2021

Heading into the month of August guidelines remain similar to those in recent months and we do not expect any significant changes in the coming weeks.

Economic Calendar For August 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

Tuesday – August 31st:

Chicago PMI: Last month the Chicago PMI report came in at 73.4. This month the report came in at 66.8.
Consumer Confidence: Expectations were for a reading of 124.0 and the number came in at 113.8.

Core PCE Inflation: The market was expecting the Core PCE Inflation report to come in at 3.6% and that’s exactly what happened. August 2021 mortgage rates remained stable heading into the weekend.

Friday – August 27th:

Core PCE Inflation: The market was expecting the Core PCE Inflation report to come in at 3.6% and that’s exactly what happened. August 2021 mortgage rates remained stable heading into the weekend.

Thursday – August 26th:

Unemployment Claims: The jobless claims report came in at 353,000 claims after last week’s 348,000 report. Continued claims came in at 2,862,000.

Wednesday – August 25th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 257.5 and the MBA Refinance Index came in at 3520.7.

Tuesday – August 24th:

New Home Sales: The New Home Sales report came in at 708,000 units (annual rate) and last month it came in at 676,000 units (annual rate).

Monday – August 23rd:

Market Manufacturing PMI: Last month the Market Manufacturing PMI came in at 63.4. This month it came in at 61.2.

Thursday – August 20th:

Unemployment Claims: The jobless claims report came in at 348,000 claims after last week’s 375,000 report. Continued claims came in at 2,820,000.

Wednesday – August 18th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 249.9 and the MBA Refinance Index came in at 3490.2.

Tuesday – August 17th:

Retail Sales: Like the Consumer Sentiment report, the Retail Sales report came in weaker than expected. Expectations were for a report showing -.3% decline however the report showed a -1.1% decline.

Friday – August 13th:

Consumer Sentiment: The market was expecting the Consumer Sentiment report to come in at 81.2 however it came in well below that at 70.2. Its clear consumers have had enough of higher prices and are losing optimism. August 2021 mortgage rates responded favorably to the report.

Thursday – August 12th:

Unemployment Claims: The jobless claims report came in at 375,000 claims after last week’s 385,000 report. Continued claims came in at 2,866,000.

Wednesday – August 11th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 252.0 and the MBA Refinance Index came in at 3684.3.
Consumer Price Index: The Consumer Price Index (CPI) was expected to come in at 4.3% and that’s where the final number came in at. Last month the CPI came in at 4.5%. August 2021 mortgage rates were slightly impacted by the report.

Friday – August 6th:

Employment Report: The market is expecting the report to show 870,000 jobs created. However the report was much stronger than anticipated. The report showed 943,000 jobs created. Earnings were stronger as well, 0.3% increase (market expectation) vs 0.4% increase (report). This was a strong report which turned out to be bad news for August 2021 mortgage rates.

Thursday – August 4th:

Unemployment Claims: The jobless claims report came in at 385,000 claims after last weeks 373,000 report. Continued claims came in at 2,930,000.

Wednesday – August 3rd:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 247.5 and the MBA Refinance Index came in at 3571.3.
ADP Employment Report: The market is expecting the report to show 695,000 jobs created after last month’s report of 692,000 jobs created.
ISM Non-Manufacturing: The ISM Non-Manufacturing report was much stronger than anticipated. The market was expecting a reading of 60.5 and the report came in at 64.1. August 2021 mortgage rates were under pressure to move higher post report.

Monday – August 2nd:

ISM Manufacturing PMI: The market was expecting the ISM Manufacturing PMI report to come in at 60.9 however the report came in at 59.5. August 2021 mortgage rates improved to start the week.

Mortgage Rates And The Monthly Jobs Report

The market is expecting the jobs report to show 800,000 jobs created, average hours worked at 34.7 and earnings to come in 0.3.

Last month the number of jobs created was 850,000, the average hours worked was 34.7 and earnings came in at 0.3.

For August 2021 mortgage rates to move significantly the reported numbers will have to either be significantly higher or lower than expected.

UPDATE: Per the post above the jobs report was much stronger than expected. Almost every part of the report was above market expectations and this caused August 2021 mortgage rates to moved higher post report.

August 2021 Mortgage Rates In California – Average

We’ll update this section as we move further into August however to start off the month we’re seeing the following averages.

The average 30-year fixed mortgage rate is 2.625%.
The average 20-year fixed mortgage rate is 2.50%
The average 15-year fixed rate is 2.00%.

This is an average of the August 2021 mortgage rates 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 the day. For a mortgage quote specific to your situation please be sure to contact us directly.

Mortgage-Backed Securities & Treasury Snapshot

August 23rd – August 31st:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.22 level and the UMBS 2.5 coupon started at the 103.67 level. The 10y Treasury yield was at the 1.26% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.31 level and the UMBS 2.5 coupon was nearing the 103.83 level. The 10y Treasury yield was at 1.31%.

August 16th – August 20th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.38 level and the UMBS 2.5 coupon started at the 103.83 level. The 10y Treasury yield was at the 1.28% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.23 level and the UMBS 2.5 coupon was nearing the 103.68 level. The 10y Treasury yield was at 1.26%.

August 9th – August 13th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.50 level and the UMBS 2.5 coupon started at the 103.91 level. The 10y Treasury yield was at the 1.30% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.38 level and the UMBS 2.5 coupon was nearing the 103.80 level. The 10y Treasury yield was at 1.28%.

August 2nd – August 6th:

Mortgage-Backed Security UMBS 2.0 started the week at the 102.03 level and the UMBS 2.5 coupon started at the 104.20 level. The 10y Treasury yield was at the 1.22% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.39 level and the UMBS 2.5 coupon was nearing the 103.83 level. The 10y Treasury yield was at 1.27%.