Current mortgage rates as of September 23, 2021: upward trend

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A variety of major mortgage rates have grown today. While 15-year fixed mortgage rates have fallen, interest rates on 30-year fixed mortgages have increased. The average rate for the most common type of variable rate mortgage, the 5/1 variable rate mortgage, has increased. Mortgage interest rates are never set in stone, but interest rates are historically low. If you are considering financing a home, maybe now is the time to lock in a fixed rate. Before buying a home, remember to consider your personal needs and financial situation, and compare offers from various lenders to find the one that’s right for you.

30-year fixed rate mortgages

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.03%, which is an increase of 1 basis point from a week ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will generally have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. While you will pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.30%, which is down 1 basis point from the same period last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15-year loan will usually be the best deal, if you can afford the monthly payments. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.05%, an addition of 2 basis points from a week ago. With an ARM mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But because the rate adjusts to the market rate, you could end up paying more after that time, as described in your loan terms. If you plan to sell or refinance your home before rates change, an adjustable rate mortgage may be right for you. But if it doesn’t, you might have to pay a much higher interest rate if market rates change.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders in the United States:

Current average mortgage interest rates

Type of loan Interest rate A week ago Switch
30-year fixed rate 3.03% 3.02% +0.01
15-year fixed rate 2.30% 2.31% -0.01
Giant 30-year mortgage rate 2.79% 2.79% NC
30-year mortgage refinancing rate 3.00% 2.99% +0.01

Updated September 23, 2021.

How to find personalized mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. When looking for mortgage rates, consider your goals and current finances. Specific mortgage rates will vary based on factors such as credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. Beyond the mortgage interest rate, other factors, including closing costs, fees, points of rebate, and taxes, can also affect the cost of your home. Be sure to talk to several different lenders – including local and state banks, credit unions, and online lenders – and a comparator to find the best mortgage for you.

How does the term of the loan affect my mortgage?

When choosing a mortgage, it’s important to consider the length of the loan or the repayment schedule. The most common mortgages are for 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. The mortgages are then divided into fixed rate and adjustable rate mortgages. For fixed rate mortgages, the interest rates are set for the term of the loan. Unlike a fixed rate mortgage, the interest rates for a variable rate mortgage are only the same for a certain period of time (usually five, seven, or 10 years). After that, the rate adjusts annually based on the market interest rate.

One factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to stay in your home. For those who plan to stay in a new home for the long term, fixed rate mortgages may be the best option. Fixed rate mortgages offer more stability over time than variable rate mortgages, but variable rate mortgages may offer lower interest rates initially. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage might give you a better deal. The best loan term is entirely up to your circumstances and goals, so be sure to think about what’s important to you when choosing a mortgage.

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