A handful of important mortgage rates have fallen today. 15-year fixed and 30-year fixed mortgage rates were both lower. We also saw a drop in the average interest rate on 5/1 adjustable rate loans. Although mortgage rates are always changing, they are at an all-time low. If you are planning to finance a home, it may be an ideal time now to lock in a fixed interest rate. But as always, make sure you first think about your personal goals and circumstances before buying a home, and compare offers to find a lender that can best meet your needs.
30-year fixed-rate mortgages
The average 30-year fixed mortgage rate is 3.14%, which is a decrease of 5 basis points as seven days ago. (A base point equals 0.01%.) The most common loan period is a 30-year fixed mortgage. A 30-year fixed-rate mortgage will usually have a smaller monthly payment than a 15-year – but often a higher interest rate. You will not be able to pay off your house as quickly and you will pay more interest over time, but a 30-year fixed mortgage is a good option if you want to minimize your monthly payment.
15-year fixed-rate mortgages
The average interest rate for a 15-year fixed mortgage is 2.44%, which is a decrease of 2 basis points compared to a week ago. You will definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and the loan amount are the same. But if you can afford the monthly payments, there are several benefits to a 15-year loan. These typically include being able to get a lower interest rate, pay off your mortgage earlier and pay less overall interest in the long run.
5/1 adjustable rate loans
A 5/1 adjustable rate loan has an average interest rate of 3.13%, a decrease of 5 basis points from seven days ago. For the first five years, you will usually get a lower interest rate with a 5/1 adjustable rate loan compared to a 30-year fixed mortgage. However, you may end up paying more after that time, depending on the terms of your loan and how the exchange rate changes with the market interest rate. If you are planning to sell or refinance your house before price changes, an adjustable rate loan may make sense to you. However, if that is not the case then maybe you should be looking for a much higher interest rate if market rates change.
Trends in mortgages
We use information collected by Bankrate, which is owned by the same parent company as CNET, to track the daily interest rate trend. This table summarizes the average prices offered by lenders across the country:
Current average mortgage rates
|Type of loan||Interest rate||A week ago||Change|
|30 years fixed interest rate||3.14%||3.19%||-0.05|
|15 years fixed interest rate||2.44%||2.46%||-0.02|
|30-year jumbo interest rate on mortgages||2.76%||2.80%||-0.04|
|30-year refinancing rate on mortgages||3.13%||3.16%||-0.03|
Updated November 25, 2021.
How To Find The Best Mortgage Rates
To find a personal mortgage rate, meet with your local mortgage broker or use an online mortgage service. Be sure to take your current finances and goals into account when looking for a mortgage. Specific mortgage rates will vary based on factors including credit score, payout, debt to income ratio and loan-to-value ratio. Having a good credit score, a higher payout, a low DTI, a low LTV or a combination of these factors can help you get a lower interest rate. Interest rates are not the only factor affecting the price of your home – be sure to consider other costs as well such as fees, closing costs, taxes and discount points. Be sure to talk to a variety of lenders – including local and national banks, credit unions and online lenders – and comparison store to find the best loan for you.
What is the best loan period?
When choosing a mortgage loan, remember to consider the term of the loan or the payment schedule. The most common loan terms are 15 years and 30 years, although there are also 10-, 20- and 40-year mortgage loans. Another important distinction is between fixed-rate and adjustable-rate loans. The interest rates on a fixed-rate mortgage are set for the term of the loan. Unlike a fixed-rate mortgage loan, the interest rates for an adjustable-rate loan are only set for a certain period of time (usually five, seven or 10 years). Thereafter, the exchange rate is adjusted annually based on the current interest rate on the market.
One factor to consider when choosing between a fixed rate and adjustable rate loan is how long you plan to stay in your home. Fixed-rate mortgages may be better suited to those who plan to live in a home for a while. While adjustable-rate loans can offer lower interest rates in advance, fixed-rate mortgages are more stable in the long run. However, if you do not plan to keep your new home for more than three to 10 years, an adjustable rate loan can give you a better deal. The best loan period is entirely dependent on your own situation and goals, so be sure to think about what is important to you when choosing a mortgage loan.