Here Are Today’s Mortgage Rates, January 12, 2021 | Rates Moved Upward

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Today, a handful of important mortgage rates grew. Both 30-year fixed and 15-year fixed mortgage rates grew. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage, slid lower.

Interest rates for mortgages are in a constant state of transition. However, they’ve been quite low by historical standards. If you’re looking for a mortgage, now can be a good time to get a guaranteed low rate for the life of the loan. But you’ll want to be sure to find the best rate before committing.

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

The 30-year fixed-mortgage rate average is 2.93%, which is a growth of 8 basis points from last week.

You can use NextAdvisor’s mortgage calculator to get an idea of what your monthly payments will be and calculate what you’ll save with additional payments. The mortgage calculator can also show you the total 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 2.38%, which is an increase of 8 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be more simple. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 Adjustable-Rate Mortgages

A 5/1 adjustable-rate mortgage has an average rate of 2.93%, a fall of 3 basis points compared to last week.

An adjustable-rate mortgage is ideal for individuals that will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being a significant amount 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, depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

Where Rates Are Trending

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 current average rates based on information provide to Bankrate by lenders from across the country:

Today’s mortgage interest rates
Loan termToday’s RateLast weekChange
30-year mortgage rate2.93%2.85%+0.08
15-year fixed rate2.38%2.30%-0.08
30-year jumbo mortgage rate2.98%2.89%+0.09
30-year mortgage refinance rate2.98%2.89%+0.09

Rates accurate as of January 12, 2021.

There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things like inflation and even the unemployment rate. When you see inflation increasing that usually means mortgage rates are about to climb higher. On the other hand, lower inflation typically accompanies lower mortgage rates. With higher inflation, the dollar becomes less valuable. This scenario pushes buyers away from mortgage-backed securities, which leads to price decreases and the need for increasing yields. And higher yields require borrowers to pay higher interest rates.

The demand for housing can also impact mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of demand can drive interest rates up. And if there is less demand for mortgages, that can cause a decline in mortgage rates.

What Does the Future Hold for Mortgage Rates?

In recent months, mortgage rates fell to new all-time lows. But what the future holds isn’t easy to predict. The economy will play a big factor, and so will how well the coronavirus can be contained. A vaccine could help boost the economy and lead to an increase in mortgage rates. Conversely, mortgage rates are likely to stay low if the coronavirus continues to cause economic hardship.

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 every day.

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

Mortgage Interest Rates by Loan Type

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