A variety of key mortgage rates sank today. The averages for both 30-year fixed and 15-year fixed mortgages tumbled down. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) also dropped lower.
The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:
- The average 30-year fixed-rate mortgage currently sits at 3.14%
- 20-year mortgage rate: 3.02%
- The average 15-year fixed-rate mortgage currently sits at 2.44%
- 10-year mortgage rate: 2.42%
- 5/1 ARM rates are averaging 2.76%
What These Mortgage Rate Changes Mean for Homebuyers:
In recent weeks we’ve seen rates slowly climb higher, but qualified borrowers continue to have access to reduced mortgage rates. But for many buyers, getting a good rate isn’t the biggest hurdle to owning a home. There aren’t many homes for sale, so competition has caused home prices to rise. With so few homes for sale, buyers can expect to face a competitive market.
Looking at Today’s 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 trailed off.
Today’s refinance rates are:
- Today’s average 30-year fixed refinance rate is: 3.13%
- 20-year fixed-rate refinance: 3.01%
- 15-year fixed refinance rate: 2.44%
- 10-year fixed refinance rate: 2.42%
30-Year Fixed-Rate Mortgage Rates
For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.14%, which is a decrease of 5 basis points from seven days ago.
You can use NextAdvisor’s mortgage loan calculator to work out what your monthly payments would be and understand how adding extra payments will impact your loan. The mortgage calculator can also show you all of the 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 2.44%, which is a decrease of 2 basis points from the same time last week.
A 15-year, fixed-rate mortgage’s monthly payment is, without a doubt, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.
5/1 ARM Interest Rates
A 5/1 ARM has an average rate of 2.76%, a slide of 4 basis points compared to last week.
An adjustable-rate mortgage is ideal for individuals who will refinance or sell 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 your rate could climb higher and your payment might grow by hundreds of dollars a month.
Mortgage Interest Rate Movement
Throughout 2021 we have seen mortgage interest rates gradually go up.
This is what experts forecast for 2021. Although there have been ups and downs along the way, slowly rising mortgage rates are likely to stick around well into 2022. This is partly due to the Federal Reserve’s aim to keep inflation near 2%, so it has begun to unwind to asset purchases and could begin raising rates next year.
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 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.
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||3.14%||3.19%||-0.05|
|15-year fixed rate||2.44%||2.46%||-0.02|
|30-year jumbo mortgage rate||3.13%||3.18%||-0.05|
|30-year mortgage refinance rate||3.13%||3.16%||-0.03|
Updated on November 25, 2021.
Is It a Good Idea to Lock in My Mortgage Rate Right Now?
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.
When you lock in your rate, ask your lender how long the lock is valid for. 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
It appears that the days of mortgage rates reaching one record low after another are over. Both inflation and the economy are looking stronger, which has factored into rising rates. Despite that, the Delta variant’s impact has been a counterbalancing factor. 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.
You shouldn’t let the rise or fall in mortgage rates dictate when you buy a home, but if you can lock in a great deal right now, you might benefit for years to come. Make sure you are aware, however, that rising home prices may cancel out the savings you get from a low interest rate.
2021 Mortgage Rate Predictions
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. Keep in mind that although the economy is expected to recover this year, the Delta variant continues to spread and future variants loom as threats. These are some of the factors limiting the rise we could see in mortgage rates.
How to Get the Lowest Mortgage Rate
Your credit score, and loan-to-value ratio (LTV), and are the most important factors in determining your mortgage rate.
To get the lowest rate, you’ll need a credit score somewhere between 700-800. Having a credit score above 800 is nice, but will likely have no major impact on your rate.
Lenders provide the largest mortgage rate discounts to home buyers that are seen as less risky. A sizeable down payment is a signal to lenders that you are more committed and are less likely to stop making payments. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).