Several benchmark mortgage rates tapered off today. The average rates on 30-year fixed and 15-year fixed mortgages both receded. The average rate on 5/1 adjustable-rate mortgages, meanwhile, remained steady.
Today’s mortgage interest rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 3.04% 3.07% -0.03
15-year mortgage rate 2.51% 2.62% -0.11
30-year jumbo mortgage rate 3.10% 3.00% +0.10
30-year mortgage refinance rate 3.21% 3.11% +0.10
Rates accurate as of November 10, 2020.
Mortgage rates are constantly changing, but they remain low by historical standards. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just make sure you shop around first.
Compare mortgage rates in your area now.
30-year fixed mortgages
The average rate for a 30-year fixed mortgage is 3.04 percent, a decrease of 3 basis points from a week ago. Last month on the 10th, the average rate on a 30-year fixed mortgage was higher, at 3.06 percent.
At the current average rate, you’ll pay a combined $423.76 per month in principal and interest for every $100,000 you borrow. That’s $1.63 lower, compared with last week.
You can use Bankrate’s mortgage loan calculator to figure out your monthly payments and see what the effects of making extra payments would be. It will also help you determinehow much interest you’ll pay over the life of the loan.
15-year mortgage rates
The average 15-year fixed-mortgage rate is 2.51 percent, down 11 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $667 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 Adjustable Rate Mortgage Rates
The average rate on a 5/1 ARM is 3.04 percent, unchanged over the last week.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.04 percent would cost about $424 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are currently? Lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
Rate lock advice and recommendations
A rate lock guarantees your mortgage interest rate for a specified period of time. Lenders often offer 30-day rate locks for a nominal fee or roll the price of the lock into your loan. Some mortgage lenders will lock rates for longer periods of time, even exceeding 60 days, but those locks can be expensive. In today’s unstable market, some lenders will lock an interest rate for just two weeks because they don’t want to take on unnecessary risk.
The benefit of a rate lock is that if interest rates rise, you’re locked into the guaranteed rate. You may be able to find a lender that offers a floating rate lock. A floating rate lock lets you get a lower rate if interest rates decline before closing your loan. It could be worth the cost in a declining rate environment. Because mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.
Keep in mind that during the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, and expect refinancing to take at least a month.
What causes mortgage rates to move
Mortgage rates are influenced by a range of economic factors, from inflation to unemployment numbers. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives off investors for mortgage-backed securities, causing the prices to fall and yields to climb. When yields climb, rates get more expensive for borrowers.
Generally speaking, when the economy is strong, more people buy homes. That drives demand for mortgages. Increased demand for mortgages can cause rates to increase. The opposite is also true; less demand can lead to lower rates.
Current mortgage rate environment
Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, rates have been low. For a while, some lenders were increasing rates because they were struggling to deal with the demand. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.
Are mortgage rates rising or falling?
Mortgage rates have fallen to record lows in recent months. Where they’ll go from here is nearly impossible to predict. Much depends on the direction of the economy, and how well public health officials can contain the coronavirus pandemic. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. However, if the economy suffers pandemic-related setbacks, rates will stay low or even fall further.
Is now a good time to buy a house?
There’s never a straightforward answer to this question. It always depends. Do you have a reliable income, a good credit score and money saved for a down payment and repairs? If you can answer all of those questions affirmatively, you’re ready to buy.
However, the pandemic has led to an even greater shortage of homes. That’s caused a bidding war and rising prices. Those trends mean it can be a frustrating market for buyers.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s average rates.”
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Today’s 30-year mortgage rates
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LOAN TYPE PURCHASE RATES REFINANCE RATES
The table above links out to loan-specific content to help you learn more about rates by product type.
30-Year Loan 30 Year Fixed Mortgage Rates Current 30 Year Refinance Rates
20-Year Loan 20-Year Mortgage Interest Rates 20-Year Refinance Interest Rates
15-Year Loan 15 Year Fixed Mortgage Rates Current 15-Year Refinance Rates
10-Year Loan 10-Year Fixed Mortgage Rates Current 10-Year Refinance Rates
FHA Loan FHA Mortgage Loan Rates FHA Refinance Rates
VA Loan VA Mortgage Rates VA Refi Interest Rates
ARM Loan ARM Loan Rates Current ARM Refinance Rates
Jumbo Loan Current Jumbo Mortgage Rates Jumbo Loan Refinance Rates
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.