Today’s National Mortgage Rates, September 15, 2021 | Rates Fell

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 few notable mortgage rates went down today. The averages for both 30-year fixed and 15-year fixed mortgages had a downswing. We also saw a cut in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

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, surging home prices have offset the benefits of affordable interest rates. Adding to the problem is low housing inventory, and supply chain disruptions have increased the cost of building new homes. So buyers are likely to face a tough market for the remainder of this year.

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 receded. If you’ve been considering a 10-year refinance loan, just know average rates remained unaltered.

Today’s refinance rates are:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgage Rates

The median interest rate for a standard, 30-year, fixed mortgage is 3.02%, which is a decline of 1 basis point from the previous week.

You can use NextAdvisor’s mortgage payment calculator to determine your monthly payments 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-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 2.31%, which is a decrease of 2 basis points compared to a week ago.

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 ARM Mortgage Rates

A 5/1 ARM has an average rate of 2.79%, a decrease of 1 basis point compared to a week ago.

An ARM 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 payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

Mortgage Interest Rate Trends

Mortgage move up and down based on a wide rang of broad economic indicators such as inflation, the bond market, and unemployment numbers.. If a growing economy pushes inflation higher, then investors will require a higher rate of return. In that scenario, rates would need to increase to entice investors to purchase mortgage-backed securities (MBS). But if there is a lot of demand for MBS, then rate will do the opposite and decrease.

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. However, as the economy recovers the Federal Reserve could announce plans to reduce the amount of securities it purchases, which would allow rates to rise.

How our mortgage interest rates are calculated

NextAdvisor’s mortgage interest 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 owner occupied homes with 20% equity or more.

Bankrate is part of the same parent company as NextAdvisor.

Today’s mortgage interest rates
Loan termToday’s RateLast weekChange
30-year mortgage rate3.02%3.03%-0.01
15-year fixed rate2.31%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 accurate as of September 15, 2021.

Should I Lock in My Mortgage Rate 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.

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?

For the past several months, mortgage rates have been in a holding pattern, staying around 3%. As long as the Federal Reserve stays the course and doesn’t change its policies, the current trend for rates is likely to continue. But there are indications that changes could be announced this fall, which could push rates higher, closer to the levels many experts expected mortgage rates to be at in 2021.

The direction rates go will depend on the economy. A growing economy usually goes hand in hand with rising mortgage rates. If spending increases, from the government and consumers, that’s likely to drive inflation higher. However, the Federal Reserve believes the inflation we’re seeing is only temporary, and so rates have stayed low. But it will take a while for the us to recover to prepandemic levels. So if rates rise, it’s more likely to happen over time, not all at once.

2021 Mortgage Rate Predictions

In the coming weeks, we shouldn’t see any drastic changes in mortgage rates. That means we’re likely to see rates stay near or below 3%.

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.

To get the lowest mortgage rate, it’s best to have 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.

Mortgage providers give the biggest mortgage rate discounts to borrowers that are seen as less risky. One surefire way to show you’re more likely to make your monthly payments is to have a bigger down payment. 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).