Some closely followed mortgage rates declined today. 15-year fixed and 30-year fixed mortgage rates both trailed off. At the same time, average rates for 5/1 adjustable-rate mortgages also were reduced. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. Because of this, right now is an ideal time for prospective homebuyers to lock in a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before buying a house, and shop around to find a lender who can best meet your needs.
Find current mortgage rates for today
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 2.98%, which is a decline of 3 basis points from one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but typically a higher interest rate. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.28%, which is a decrease of 3 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. These include usually being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 2.99%, a slide of 4 basis points compared to a week ago. With an ARM mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But you might end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM might be a good option. If not, shifts in the market might significantly increase your interest rate.
Mortgage rate trends
We use data collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||2.98%||3.01%||-0.03|
|15-year fixed rate||2.28%||2.31%||-0.03|
|30-year jumbo mortgage rate||2.80%||2.78%||+0.02|
|30-year mortgage refinance rate||2.97%||2.99%||-0.02|
Rates accurate as of August 2, 2021.
How to find personalized mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to take into accountyour current financial situation and your goals when looking for a mortgage. Things that affect what mortgage interest rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider other factors such as fees, closing costs, taxes and discount points. Make sure to comparison shop with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s the best fit for you.
What’s the best loan term?
When picking a mortgage, it’s important to consider the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are stable for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (most frequently five, seven or 10 years), then the rate fluctuates annually based on the market interest rate.
One important factor to consider when choosing between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home. If you plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. The best loan term all all depends on your personal situation and goals, so be sure to take into consideration what’s important to you when choosing a mortgage.