Today’s Mortgage Rates, November 2, 2020 | Rates Trending Higher

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, a handful of closely followed mortgage rates are now higher. Both 30-year fixed and 15-year fixed mortgage rates climbed up. For variable rates, the 5/1 adjustable-rate mortgage slid lower.

Interest rates for mortgages are in a constant state of transition. Yet rates are an incredible deal compared to almost any other time in history. If you’re looking for a mortgage, now it can be a good idea to pick up a low fixed rate. Yet you still need to compare offers from different lenders.

Find current mortgage rates now.

30-Year Fixed-Rate Mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.06%, which is an increase of 3 basis points from last week.

You can use NextAdvisor’s mortgage calculator to work out what your monthly payments would be and calculate what you’ll save with additional payments. The mortgage calculator can also show you all of the interest you’ll owe over the life of the loan.

15-Year Fixed-Rate Mortgages

The median rate for a 15-year, fixed mortgage is 2.63%, which is an increase of 5 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger and will put more stress on your monthly budget than a 30-year mortgage would. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.

5/1 Adjustable-Rate Mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.04%, a fall of 3 basis points from seven days ago.

An adjustable-rate mortgage is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being remarkably higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind, your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

Where Rates Are Moving

To see where mortgage rates are headed we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. This table has up to date average rates based on information provide to Bankrate by lenders from across the country:

Average mortgage interest rates
ProductRateLast weekChange
30-year fixed3.06%3.03%+0.03
15-year fixed2.63%2.58%-0.05
30-year jumbo mortgage rate3.04%3.10%-0.06
30-year mortgage refinance rate3.12%3.23%-0.11

Rates as of November 2, 2020.

Is a Rate Lock Important?

When you lock a rate it freezes the interest rate for a set amount of time. It’s not unheard of for lenders to offer rate locks for a fee, which could be included in the price of the loan. In general, the longer the interest rate lock period, the more pricey it will be. You may even run into a lender that will lock a rate for a shorter period of time because it wants to avoid the risk of a big jump in rates.

If mortgage rates rise, the rate lock kicks in to protect you. When interest rates are declining, you may be concerned about a rate lock; you don’t want to lock into a higher rate after all. One way to protect yourself in this scenario is to ask if your lender offers a floating rate lock. This allows you to get a lower rate if interest rates drop before you close your loan. Mortgage rates can be extremely unpredictable, so no one knows how they will change from day-to-day. That’s why it’s usually the right move to lock in a low rate, rather than betting on mortgage rates taking a tumble.

Don’t forget that during the pandemic, mortgage professionals have been extremely busy and it’s taking longer to close on a home. In some cases, it can take up to 60 days to close a mortgage loan – and you should also expect a refinance to take longer than normal.

Why do Mortgage Rates Fluctuate?

A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, and this causes mortgage-backed securities to become less enticing for investors, which leads to falling prices and higher yields. And if yields increase, interest rates become more expensive for borrowers.

A strong economy has historically increased demand for homes. When more homes are sold, the demand for mortgages also increases, which can cause rates to go up. But the flip side is also true: A drop in demand for mortgages could signal a coming downturn in mortgage rates. demand for mortgages, that can cause a decline in mortgage rates. high after a rate adjusts.

Where Are Mortgage Rates Going?

In recent months, mortgage rates fell to new all-time lows. But what the future holds isn’t easy to predict. Where rates go is largely dependent on what happens with the economy. In addition, how well the coronavirus pandemic is contained will also play a role. When the economy recovers, rates will rise. But this could be largely dependent on the development of a coronavirus vaccine. Conversely, mortgage rates are likely to stay low if the coronavirus continues to cause economic hardship.

Current Mortgage Rate Bearings

Mortgage rates haven’t been as stable as usual because of the COVID-19 pandemic and what it has done to the economy. But in general, rates have been depressed. In fact, mortgage rates set a record low, dipping under 3% for the first time. The problem for some people is you need excellent credit to qualify for these exceptionally-low rates. Not only that, but mortgage lenders are becoming more risk averse and requiring more sizable down payments while also closely scrutinizing borrowers’ employment.

Mortgage Rates’ Impact on Borrowers

The rock-bottom mortgage rates we’ve seen have distinct advantages and disadvantages for homebuyers. For starters, buyers have the ability to borrow larger amounts now than when rates were higher. For example, a 30-year, $350,000 loan with a 4% interest rate would have a monthly mortgage and interest payment of $1,670. A payment on the exact same loan would drop to $1,475 if the mortgage rate was reduced to 3%.

One drawback to slumping mortgage rates is that buyers may find increased competition for that dream home, which can drive home prices up.

Let’s say you were going to purchase a home for $350,000 with a 4% mortgage rate. A 20% down payment would cost you $70,000, and with a 30-year loan term the monthly payment would be $1,336.

Suppose the price of the same property jumps to $380,000, while the mortgage rate drops to 3%. If you can still manage a down payment of 20% the monthly payment on a 30-year loan would be $1,451, an increase of only $115 a month. But the down payment goes up by another $6,000, and some of your closing costs are also likely to rise.

Is Now a Good Time to Buy a Home?

Whether or not you buy a home is a highly personal choice. Your financial situation will play a big role in your decision. Before you buy a home, you’ll want to have a secure source of income, enough saved for closing costs, and a high credit score.

However, the pandemic has exacerbated a shortage of homes, leading to bidding wars and rising prices. Those trends mean it can be a frustrating market for buyers.

How We Got These Rates

The rates we have included are averages provided by Bankrate.com Site Averages and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same everyday.

National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.