A variety of key mortgage rates sank today. The averages for both 30-year fixed and 15-year fixed mortgages fell down. We also saw a decrease in the average rate of 5/1 adjustable-rate mortgages (ARM).
Mortgage rates currently are:
- Today’s average 30-year fixed mortgage rate is 3.14%
- 20-year mortgage rate: 3.02%
- Today’s 15-year fixed mortgage rate is 2.44%
- Today’s 10-year fixed mortgage rate is 2.42%
- The average 5/1 adjustable mortgage currently sits at 2.76%
What These Mortgage Rate Changes Mean for Homebuyers:
Although they have steadily increased recently, Mortgage interest rates continue to linger near record lows, which increases how much homebuyers can borrow. But at the same time, it is also helping to fuel demand and cause home prices to skyrocket. So the potential savings of a favorable interest rate can be offset by higher home prices. 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.
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 dropped. Shorter term, 10-year fixed-rate refinance mortgages also decreased.
The refinance averages for 30-year, 15-year, and 10-year loans are:
- The average 30-year fixed-rate refinance currently sits at: 3.13%
- 20-year fixed-rate refinance: 3.01%
- 15-year fixed-rate refinance: 2.44%
- 10-year refinance rate: 2.42%
30-Year Fixed Mortgage Interest Rates
The average 30-year fixed mortgage interest rate is 3.14%, which is a decline of 5 basis points from last week.
You can use NextAdvisor’s mortgage calculator to determine your monthly payments and calculate what you’ll save with additional payments. The mortgage calculator can also show you all of the interest you’ll pay over the life of the loan.
15-Year Mortgage Rates
The median rate for a 15-year fixed mortgage is 2.44%, which is a decrease of 2 basis points from the same time last week.
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 save thousands of dollars in interest and pay off your loan much sooner.
5/1 ARM Rates
A 5/1 ARM has an average rate of 2.76%, a fall of 4 basis points from seven days ago.
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 noticeably 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 Rate Movement
Mortgage rates are influenced by many factors, such as inflation and unemployment. In general, more inflation leads to higher 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 rates of return.
While there is no single entity that sets mortgage rates, the Federal Reserve Bank’s policies can impact what happens with interest rates, and it recently announced policy changes. The Federal Reserve has begun reducing the amount of mortgage-backed securities (MBS) it purchases each month. What we are seeing right now is what many experts believed would happen this year, slowly rising mortgage rates.
How our mortgage rates are calculated
NextAdvisor’s rate averages are pulled from Bankrate’s daily rate data.. These overnight rates are based on a specific personal financial profile, which only includes loans for primary residences where the borrower has a FICO score of 740+.
Bankrate is part of the same parent company as NextAdvisor.
|30-year jumbo mortgage rate||3.13%||3.18%||-0.05|
|30-year mortgage refinance rate||3.13%||3.16%||-0.03|
Rates as of November 22, 2021.
When Should I Lock in My Mortgage Rate?
It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates so low right now, you should lock in your rate as soon as you can.
A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may offer an extension of the lock, however, you might have to pay a fee for that privilege.
What Does the Future Hold for Mortgage Rates?
Interest rates for mortgages hovered around 3% throughout most of 2021. However, it is anticipated that they will rise over the long run. There are a number of factors contributing to this outlook, including the health of the economy and the Federal Reserve’s policy decisions. A healthy economy is often characterized by rising interest rates, and the U.S. economy is expected to remain strong in 2022. While the Federal Reserve has already announced that it will begin to reduce its bond purchases next year, it is also expected to hike interest rates in 2022. These types of policy decision would contribute to higher mortgage rates over the long term.
Our lesson from the pandemic is to expect the unexpected. But outside of another Black Swan event that rattles the economy, it’s reasonable to assume that rates won’t rise to 6% or 5% anytime soon.
2021 Mortgage Rate Forecast
Mortgage rates are expected to remain fairly low for the duration of 2021. However, rates have been steadily rising and by year’s end they are likely to be slightly higher. As the economy continues to recover, interest rates will rise, but keep in mind that it is unlikely for the economy to make a full recovery this year as the Delta variant spreads and future variants still loom.. These factors are likely to contributed to subdued mortgage rates growth.
How to Get the Lowest Mortgage Rate
Comparing home loan offers is a great way to get the lowest mortgage rate.
Your mortgage rate depends on a number of factors lenders consider when assessing how the likelihood that you’ll be able to afford a mortgage for the long term. Your credit score impacts your mortgage rate. And your loan-to-value (LTV) ratio is also important, so having a more substantial down payment is better for your interest rate.
But lenders will consider your circumstances differently. So you can provide the same documentation to three different mortgage providers, and get offers with three different mortgage rates and fees that vary just as much.