Today’s National Mortgage Rates, September 14, 2021 | Rates Declined

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.

A variety of benchmark mortgage rates went down 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 slid lower.

The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:

What this means for borrowers:
Today’s mortgage interest 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 in many areas, rising home prices have offset the benefits of low interest rates. 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 average rates for 15-year fixed and 30-year fixed refinance loans sank. If you’ve been considering a 10-year refinance loan, just know average rates remained unaltered.

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

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgage Rates

The average 30-year fixed mortgage interest rate is 3.02%, which is a decrease of 1 basis point from seven days ago.

You can use NextAdvisor’s home loan payment 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 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 2.31%, which is a decrease of 2 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger and will take up a bigger chunk of your monthly budget than a 30-year mortgage would. 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 Rates

A 5/1 ARM has an average rate of 2.78%, a fall of 2 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 Rate Movement

Mortgage move up and down based on a wide rang of broad economic indicators such as inflation, the bond market, and unemployment numbers.. 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 yields. And if yields increase, interest rates become more expensive for borrowers.

While there is no single entity that sets mortgage rates, the Federal Reserve Bank’s policies can impact what happens with interest rates. However, recently it has indicated that we could see a change in policy this year. The Federal Reserve has committed to purchasing a large number of mortgage-backed securities (MBS) each month, which helps keep rates low. But it could announce a reduction of its MBS purchases as early as this fall.

How we determine mortgage interest rates

To get an idea of where mortgage rate may move, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on home loans where the borrower has a 740+ FICO score, a LTV of 80% or lower, and lives in the home.

The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders from across the country:

Average mortgage interest rates
ProductRateLast weekChange
30-year fixed3.02%3.03%-0.01
15-year fixed2.31%2.33%-0.02
30-year jumbo mortgage rate3.03%3.05%-0.02
30-year mortgage refinance rate2.99%3.00%-0.01

Rates as of September 14, 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 offer an extension of the lock, however, you might have to pay a fee for that privilege.

What’s in Store for Mortgage Rates in 2021

This summer, mortgage rates have been extremely favorable for borrowers and have rarely topped 3%. Inflation and the economy both are looking stronger, which normally would push rates up. But the uncertainty surrounding the Delta variant has acted as a counterbalance. However, by the end of 2021 some experts predict mortgage rates won’t go much higher.

Looking at the early fall, there is still too much uncertainty to reasonably expect rates to spike. But if the rate of inflation starts to look like it is more than just temporary and the economy really starts to take off, then the Federal Reserve will likely take action. In that scenario, we could see rates start to rise.

2021 Mortgage Rate Predictions

Rates have stabilized after a period of fluctuation in the first few months of the year. It is expected that they will remain relatively stable in the coming weeks but may start trending upward toward the end of the year.

The economy still has a bumpy road to returning to its pre-pandemic level. So if we experience and mortgage rate increases this year, they will likely happen slowly over time.

How to Get the Lowest Mortgage Rate

Your credit score, and loan-to-value ratio (LTV), and are the most important factors lenders use to decide your interest rate.

Having a credit score of 750 or above will help you get the best rate. However, even a score of over 700 can get you a decent rate reduction compared to a lower credit score. For a credit score over 800, the interest rate discount won’t be meaningful.

Mortgage providers provide the biggest mortgage rate discounts to home buyers that are seen as less risky. A hefty down payment is a sign to lenders that you have more skin in the game 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).