Today’s Mortgage Rates, July 22, 2021 | Rates Eased

Photo to accompany article on Mortgage Rates

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.

What we’re seeing today is a number of principal mortgage rates have dropped off. Both 30-year fixed and 15-year fixed mortgage rates slumped. For variable rates, the 5/1 adjustable-rate mortgage (ARM) also ticked downward.

Take a look at today’s rates:

What this means for borrowers:
Today’s rates are still near all-time lows, which increases how much homebuyers can borrow. The flip side of this is that demand for homes has stayed strong and property values are increasing. So the potential savings of a low interest rate can be offset by the need to pay more for the property you want. Right now there aren’t enough homes for sale to meet the demand, and supply constraints have caused the prices of building materials to soar, there doesn’t look to be any relief for buyers in the near future.

Looking at Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the mean rates for 15-year fixed and 30-year fixed refinance loans receded. If you’ve been considering a 10-year refinance loan, just know average rates also shrank.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Find current mortgage rates for today.

30-Year Fixed Mortgage Interest Rates

The 30-year fixed-mortgage rate average is 2.98%, which is a decline of 6 basis points from seven days ago.

You can use NextAdvisor’s mortgage loan calculator to determine your monthly payments and play around with extra mortgage payments to wrap your head around how much you could save. The mortgage calculator can also show you how much interest you’ll pay over the life of the loan.

15-Year Fixed Mortgage Rates

The median rate for a 15-year fixed mortgage is 2.33%, which is a decrease of 5 basis points from the same time last week.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. But, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 2.80%, a downtick of 2 basis points from seven days ago.

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

Mortgage Interest Rate Movement

To see where mortgage rates are headed,, 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
ProductRateLast weekChange
30-year fixed2.98%3.04%-0.06
15-year fixed2.33%2.38%-0.05
30-year jumbo mortgage rate2.99%3.04%-0.05
30-year mortgage refinance rate2.96%3.10%-0.14

Rates as of July 22, 2021.

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.

The Federal Reserve Bank can also influence rates, although it doesn’t directly set mortgage interest rates. Currently, the Federal Reserve is purchasing billions of dollars in mortgage-backed securities (MBS) each month. This increased demand for MBS has helped to keep rates from increasing and should continue to do so until the Federal Reserve announces it will taper its purchase of MBS.

Is Now a Good Time to Lock in My Mortgage Rate?

Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are exceptionally low.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If you want to extend the rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

What’s in Store for Mortgage Rates in 2021

To start the year, mortgage rates rose sharply and crossed 3% – a level we haven’t seen since July 2020. After this dramatic increase, we saw a fall that brought rates back under 3%. Since then, rates have hovered around 3%, still near or below the levels many experts predicted they would hit in 2021.

What happens with rates will depend on the economy. A growing economy usually goes hand in hand with rising mortgage rates. And although inflation looks to be rising, the Federal Reserve believes this is only temporary. So inflation hasn’t pushed rates higher. But in spite of the potential for rising inflation, it’s unlikely that we’ll see skyrocketing mortgage rates in 2021. One reason for this: the Federal Reserve believes that low interest rates will help the economy rebound. So it’s likely to make policy decisions in favor of keeping rates low.

Where Are Mortgage Rates Headed in 2021?

In the near term, any changes in mortgage rates should be modest. So rates should hover near 3% at the moment.

However, the economy still has a long way to go before it recovers to pre-pandemic levels. If we get surprised by any bad news, that could put a damper on rates.

How to Get the Best Mortgage Rate

Comparing mortgage offers is one of the best ways to secure the lowest rate.

Your mortgage rate depends on a number of factors lenders consider when assessing how the likelihood that you’ll be able to make your mortgage payments for the long term. Your credit score factors into the decision. And your loan-to-value (LTV) ratio is also important, so having a bigger down payment is better for your interest rate.

But lenders will look at your situation differently. So you can give the same documentation to three different banks, and get offers with three different mortgage rates and fees that vary just as much.