Today’s National Mortgage Rates, November 23, 2021 | Rates Declined

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A few notable mortgage rates receded today. The averages for both 30-year fixed and 15-year fixed mortgages slid down. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage (ARM) which also sunk lower.

Take a look at today’s rates:

What These Mortgage Rate Changes Mean for Homebuyers:

Even with recent upward movement, today’s mortgage rates are still near historic lows, boosting the purchasing power for homebuyers that can secure a great rate. The flip side of this is that demand for homes has stayed strong and property values are increasing. So the potential savings of a favorable 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.

Current Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the average rates for 15-year fixed and 30-year fixed refinance loans shrank. Shorter term, 10-year fixed-rate refinance mortgages also saw a decrease.

The average refinance rates are as follows:

Find current mortgage rates for today.

30-Year Mortgage Rates

The 30-year fixed-mortgage rate average is 3.14%, which is a decline of 5 basis points from last week.

You can use NextAdvisor’s home loan payment calculator to get an idea of what your monthly payments will be and understand how adding extra payments will impact your loan. The mortgage calculator can also show you how much interest you’ll pay over the life of the loan.

15-Year Fixed-Rate 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 easier. 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 Mortgage Rates

A 5/1 ARM has an average rate of 2.76%, a downtick of 4 basis points from seven days ago.

An adjustable-rate mortgage is ideal for households who will refinance or sell 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

Mortgage rates move up and down based on a wide range of broad economic indicators such as inflation, the bond market, and unemployment numbers. Generally, higher inflation leads to higher rates and vice versa. As inflation rises, the dollar loses its value, which makes mortgage-backed securities less attractive to investors, which causes prices to fall and rates to increase.

Despite the fact that mortgage rates are not set by one entity, the Federal Reserve Bank’s policies can have an impact on them, and it recently announced policy changes. The amount of mortgage-backed securities (MBS) purchased by the Federal Reserve has been reduced. What we are seeing right now is what many experts believed would happen this year, slowly rising mortgage rates.

How we calculate our mortgage interest rates

To see where mortgage rates are going, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on mortgages where the borrower has a 740+ FICO score, 20% equity or more, and lives in the home.

This table has current average rates based on information provided to Bankrate by lenders nationwide:

Average mortgage interest rates
ProductRateLast weekChange
30-year fixed3.14%3.19%-0.05
15-year fixed2.44%2.46%-0.02
30-year jumbo mortgage rate3.13%3.18%-0.05
30-year mortgage refinance rate3.13%3.16%-0.03

Rates as of November 23, 2021.

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.

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 talk with your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.

What Does the Future Hold for Mortgage Rates?

We seem to be past the days when mortgage rates were falling to record lows one month after the next. Both inflation and the economy are looking stronger, which has factored into rising rates. Nevertheless, the Delta variant’s uncertainty has offset some of this increase. However, with the Federal Reserve’s recent policy changes, rates should rise throughout this year and into 2022, which is what many experts have predicted.

While mortgage rate movement shouldn’t drive your decision to buy a home, if you can lock in a good deal right now, you could benefit from a low rate for years to come. Remember, however, that today’s rising home prices can offset any savings you get from a low interest rate.

Mortgage Rate Predictions for 2021

Higher mortgage rates are forecast for this year. However, interest rates aren’t expected to skyrocket even though the Federal Reserve has announced a tapering of its bond purchases, which has helped to keep interest rates low. Before the economy and supply chains are back to normal, a lot of work remains. Because of the current uncertainty, mortgage rates will remain low throughout the year.

How to Get the Best Mortgage Rate

Comparing home loan offers is a great way to qualify for the lowest interest rate.

Your mortgage rate depends on a variety of factors lenders consider when assessing how risky it is to loan you money for a home purchase. Your credit score factors into the decision. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your mortgage rate.

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