Several major mortgage rates increased slightly today. Average rates for 15-year and 30-year fixed-rate mortgages increased slightly. The average rate of the 5/1 variable rate mortgage – the most common variable rate home loan – has also increased. While mortgage rates are constantly fluctuating, they are currently at their lowest. If you are looking for a mortgage, now is the time to get a low fixed rate on your home loan. Be sure to shop around and compare mortgage types and rates between lenders to find the best home loan for you.
Here are the mortgage rates for different types of loans
30-year fixed rate mortgages
The average interest rate for a 30-year standard fixed mortgage is 3.16%, which is an increase of 8 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most commonly used loan term. A 30 year fixed rate mortgage will usually have a lower monthly payment than a 15 year mortgage, but often a higher interest rate. 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 2.42%, which is an increase of 6 basis points from a week ago. You will likely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15 year loan will usually be the best deal, if you are able to 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 variable rate mortgage has an average rate of 3.19%, an increase of 10 basis points from the same period last week. For the first five years, you will typically get a lower interest rate with an ARM 5/1 compared to a 30-year fixed mortgage. But changes in the market could cause your interest rate to increase after this period, as stated in your loan terms. For borrowers who are considering selling or refinancing their home before rates change, an adjustable rate mortgage might be a good option. But if it doesn’t, you might be forced to pay a much higher interest rate if market rates change.
Mortgage rate trends
We use the rates collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:
Current average mortgage interest rates
|Type of loan||Interest rate||A week ago||Switch|
|30-year fixed rate||3.16%||3.08%||+0.08|
|15-year fixed rate||2.42%||2.36%||+0.06|
|Giant 30-year mortgage rate||3.20%||3.24%||-0.04|
|30-year mortgage refinancing rate||3.22%||3.14%||+0.08|
Updated June 17, 2021.
How to find personalized mortgage rates
When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. Be sure to take your current finances and goals into account when looking for a mortgage. 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. The interest rate isn’t the only factor that affects the cost of your home – be sure to consider other costs like fees, closing costs, taxes, and points of call as well. Be sure to shop around with multiple lenders – including credit unions and online lenders in addition to local and state banks – to get a loan that’s right for you.
What is a good loan term?
One important thing that you should consider when choosing a mortgage loan is the length of the loan or the payment schedule. The most common mortgages are for 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and variable rate mortgages. The interest rates for a fixed rate mortgage are set for the term of the loan. For variable rate mortgages, interest rates are stable for a number of years (typically five, seven, or 10 years) and then the rate changes each year based on the market rate.
When deciding between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to live in your home. Fixed rate mortgages might be better suited for people who plan to stay in a home for a while. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages may offer lower interest rates initially. However, you may get a better deal with an adjustable rate mortgage if you only intend to keep your home for a few years. The best loan term is entirely up to your personal circumstances and goals, so be sure to consider what’s important to you when choosing a mortgage.