July 2021 mortgage rates are near the lowest levels of 2021 which is great news for homebuyers and homeowners looking to refinance their current mortgage. The markets are still very much focused on the risks associated inflation so it’s important to be somewhat cautious when deciding when to lock in your rate.

Remember the golden rule about mortgage rates;

Mortgage rates take the elevator up and take the stairs down. Meaning when they move higher the move is much faster than when they move back down so be careful about waiting too long to lock in terms.

July 2021 mortgage rates for both purchase and refinance transactions will most likely continue to be somewhat stable provided the bond market remains stable.

Opportunities And Risks For July 2021

Mortgage rates have been fairly stable since April 2021. Every now and then there was a move higher however that was usually followed by a move back to previous levels. Inflation is always a concern for mortgage rates and that is no different as we move further into the summer months.

Higher inflation would most likely lead to higher July 2021 mortgage rates. Does that mean if we have lower inflation numbers mortgage rates will move lower? Probably not since mortgage rates are already very low.

If mortgage rates were high, and we had weak inflation numbers then yes mortgage rates would probably move lower.

July 2021 Mortgage Rate Forecast For California

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

30-year fixed rates below 2.875%
20-year fixed rates below 2.75%
15-year fixed rates below 2.25%

Our July 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 July.

Mortgage Rate And Payment Chart

Here is a quick reference guide to July 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	$205,000	2.625%	$823.38
30-year fixed	$305,000	2.625%	$1,225.03
30-year fixed	$405,000	2.625%	$1,626.68
30-year fixed	$505,000	2.625%	$2,028.34

20-Year Fixed-Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
20-year fixed	$205,000	2.375%	$1,073.86
20-year fixed	$305,000	2.375%	$1,597.70
20-year fixed	$405,000	2.375%	$2,121.53
20-year fixed	$505,000	2.375%	$2,645.36

15-Year Fixed-Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
15-year fixed	$205,000	2.00%	$1,319.19
15-year fixed	$305,000	2.00%	$1,962.70
15-year fixed	$405,000	2.00%	$2,606.21
15-year fixed	$505,000	2.00%	$3,249.72

Important Disclosure For July 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 July 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 July 2021

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

Economic Calendar For July 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 – July 29th:

Weekly Jobless Claims: Last week the weekly jobless claims came in at 419,000 and this week the weekly jobless claims report came in at 400,000. Continued claims came in at 3,269,000.

Wednesday – July 28th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 251.7 and the MBA Refinance Index came in at 3570.4.

Tuesday – July 27th:

Durable Goods: The previous Durable Goods report showed an increase of 3.2%. This month the Durable Goods report came in at a 0.8% increase.
Core CapEx: The Core CapEx report came in at a 0.5% increase.

Monday – July 26th:

New Home Sales: Last month the New Home Sales report came in at 724,000 units (annual rate) and this month it came in at 676,000 units (annual rate).

Thursday – July 22nd:

Weekly Jobless Claims: Last week the weekly jobless claims came in at 375,000 and this week the weekly jobless claims report came in at 419,000. Continued claims came in at 3,236,000.

Wednesday – July 21st:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 255.8 and the MBA Refinance Index came in at 3267.6.

Monday – July 19th:

NAHB Housing Market Index: The NAHB Housing Market Index decreased from 81 to 80.

Friday – July 16th:

Retail Sales: Last month retail sales declined -0.4% and this month there was an increase of 0.6%.

Thursday – July 15th:

Weekly Jobless Claims: Last week the weekly jobless claims came in at 350,000 and this week the weekly jobless claims report came in at 368,000. Continued claims came in at 3,241,000. July 2021 mortgage rates remained stable post report.

Wednesday – July 14th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 273.3 and the MBA Refinance Index came in at 3361.5.
Producer Price Index: The PPI came in at 1.00 and the market was expecting 0.6.

Tuesday – July 13th:

Consumer Price Index (CPI): The market was expecting the Consumer Price Index to show an increase of 4.00% however the final number came in at 4.5% (annual rate). The monthly number came in at 0.9% (expectations were for an increase of 0.5%). After the report bonds sold off and July 2021 mortgage rates were under pressure to move higher.

Thursday – July 8th:

Weekly Jobless Claims: Last week the weekly jobless claims came in at 360,000 and this week the weekly jobless claims report came in at 373,000. Continued claims came in at 3,339,000. July 2021 mortgage rates remained stable post report.

Wednesday – July 7th:

MBA Purchase and Refinance Index: The MBA Purchase Index came in at 252.4 (last week it was 255.2) and the MBA Refinance Index came in at 2791.3 (last week it was 2856.6).

Tuesday – July 6th:

ISM Non-Manufacturing: The report came in below expectations: 60.1 vs 63.5.

Friday – July 2nd:

BLS Employment Report: Last month the monthly employment report came in at 559,000 jobs created and the market was expecting this report to show 700,000 non-farm jobs however the report came in at 850,000 jobs created. July 2021 mortgage rates were not impacted by the better than expected report.

Thursday – July 1st:

Weekly Jobless Claims: The weekly jobless claims were expected to come in at 390,000 claims and they came in at 364,000 claims. Continued claims were expected to come in at 3,382,000 claims and the report showed 3,469,000 continued claims.
ISM Manufacturing PMI: The market was expecting the ISM Manufacturing PMI report to come in at 61.0 however the report came in at 60.6. July 2021 mortgage rates remained stable heading into the holiday weekend.

Mortgage Rates And The Monthly Jobs Report

The market is expecting the jobs report to show 700,000 jobs created, average hours worked at 34.9 and earnings to come in 0.4.

If the market comes in significantly above or below these numbers you might see an impact to July 2021 mortgage rates. However if the numbers are generally inline with market expectations then mortgage rates should remain stable as we had into the holiday weekend.

UPDATE: Per the post above the jobs report showed 850,000 jobs were created in June and average earnings came in at 0.3. Average hours worked came in at 34.7.

July 2021 Mortgage Rates In California – Average

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

The average 30-year fixed mortgage rate is 2.75%.
The average 20-year fixed mortgage rate is 2.50%
The average 15-year fixed rate is 2.00%.

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

July 26th – July 30th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.56 level and the UMBS 2.5 coupon started at the 103.81 level. The 10y Treasury yield was at the 1.29% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.98 level and the UMBS 2.5 coupon was nearing the 104.19 level. The 10y Treasury yield was at 1.22%.

July 19th – July 23rd:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.80 level and the UMBS 2.5 coupon started at the 103.81 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 101.67 level and the UMBS 2.5 coupon was nearing the 103.92 level. The 10y Treasury yield was at 1.28%.

July 12th – July 16th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.52 level and the UMBS 2.5 coupon started at the 103.72 level. The 10y Treasury yield was at the 1.34% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.45 level and the UMBS 2.5 coupon was nearing the 103.64 level. The 10y Treasury yield was at 1.30%.

July 6th – July 9th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.17 level and the UMBS 2.5 coupon started at the 103.49 level. The 10y Treasury yield was at the 1.42% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.36 level and the UMBS 2.5 coupon was nearing the 103.66 level. The 10y Treasury yield was at 1.35%.

July 1st – July 2nd:

Mortgage-Backed Security UMBS 2.0 started the week at the 100.95 level and the UMBS 2.5 coupon started at the 103.38 level. The 10y Treasury yield was at the 1.46% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.16 level and the UMBS 2.5 coupon was nearing the 103.50 level. The 10y Treasury yield was at 1.43.