Home Mortgages Daily Rates Here Are Today’s Mortgage Rates, January 29, 2021 | Rates Cool Off

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Here Are Today’s Mortgage Rates, January 29, 2021 | Rates Cool Off

January 29, 2021 | 5 Min Read

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A few notable mortgage rates trailed off today. The averages for both 30-year fixed and 15-year fixed mortgages had a downswing. For variable rates, the 5/1 adjustable-rate mortgage (ARM) ticked up.

Take a look at today’s rates:

30-year mortgage rate: 2.86%
15-year mortgage rate: 2.34%
5/1 ARM rates are averaging 2.99%

Looking at Today’s Mortgage Refinance Rates

If you’re in the market for a 15-year fixed-rate refinance, know that those rate averages stay flat. However, we did see a decline in rates for 30-year fixed refinance loans . Shorter term 10-year fixed-rate refinance mortgages went down.

Take a look at today’s refinance rates:

30-year fixed refinance rates are averaging: 2.89%
15-year refinance rate: 2.39%
Today’s average 10-year fixed-rate refinance is: 2.38%

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

The 30-year fixed-mortgage rate average is 2.86%, which is a decrease of 2 basis points from the previous week.

You can use NextAdvisor’s home loan 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 how much 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 2.34%, which is a decrease of 1 basis point compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. But, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much sooner.

5/1 Adjustable-Rate Mortgages

A 5/1 adjustable-rate mortgage has an average rate of 2.99%, a rise of 1 basis point from the same time last week.

An adjustable-rate mortgage is ideal for households 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. Just keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

Where Rates Are Trending

To see where mortgage rates are going we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at historical mortgage rates, we’re in the middle of a period of unprecedented low rates. This table has current average rates based on information provided to Bankrate by lenders from across the nation:

Average mortgage interest rates
Product	Rate	Last week	Change
30-year fixed	2.86%	2.88%	-0.02
15-year fixed	2.34%	2.35%	-0.01
30-year jumbo mortgage rate	2.89%	2.91%	-0.02
30-year mortgage refinance rate	2.89%	2.90%	-0.01

Rates as of January 29, 2021.

There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things including 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.

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.

What’s in Store for Mortgage Rates in 2021

In recent months, we’ve seen mortgage interest rates linger near all-time lows. And for 2021, some experts see mortgage rates continuing to stay low. Although, toward the end of the year we could see rates start to gradually rise.

The economy will play a big factor, which is tied to how well the coronavirus can be contained. As the economy recovers, we should see inflation rise, which will put upward pressure on mortgage rates. Conversely, mortgage rates are likely to stay low if the coronavirus continues to cause economic hardship. The Federal Reserve could also choose to increase its purchasing of mortgage-backed securities, which could cause mortgage rates to drop.

Factors Behind Today’s Mortgage Rates

There is a wide range of factors that influence mortgage rates. Some are broader economic factors, and others are related to your personal situation.

Condition of the economy
Decisions made by the Federal Reserve
Spending in the private and public sectors
Yields for 10-year Treasury bonds
Rate of inflation
Personal finances: Credit score, down payment, and debt-to-income ratio

Is Now a Good Time to Buy a Home?

There’s no “right time” to buy a house — the decision is a highly personal one. Keep in mind, when you purchase a home the monthly payment won’t be your only cost. You’ll also need enough money saved up for upfront closing costs and a down payment. And you’ll get a better deal if you have a higher credit score and lower debt-to-income ratio.

However, the pandemic has led to an even greater shortage of homes. That’s caused a bidding war 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 from day to 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.