Multiple key mortgage rates floated higher today. The average rates on 30-year fixed and 15-year fixed mortgages both cruised higher. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also floated higher.
Mortgage rates are in a constant state of flux, but they remain low by historical standards. If you’re in the market for a mortgage, it could be a great time to lock in a rate. Just be sure to shop around.
See mortgage rates for a variety of loan types.
30-year fixed mortgages
The average rate for a 30-year fixed mortgage is 3.08 percent, up 6 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.07 percent.
At the current average rate, you’ll pay a combined $425.93 per month in principal and interest for every $100,000 you borrow. That’s an increase of $3.25 over what you would have paid last week.
You can use Bankrate’s mortgage payment calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. It will also help you computehow much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.59 percent, up 11 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $671 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 more rapidly.
The average rate on a 5/1 ARM is 3.10 percent, up 20 basis points since the same time last week.
These loan types 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 3.10 percent would cost about $427 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher 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 mortgage interest rates forecast.
Want to see where rates are currently? Lenders nationwide respond to our 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:
Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 3.08% 3.02% +0.06
15-year fixed rate 2.59% 2.48% -0.11
30-year fixed jumbo rate 3.11% 3.00% +0.11
30-year fixed refinance rate 3.08% 2.92% +0.16
Updated on October 2, 2020.
When to lock your mortgage rate
A rate lock guarantees your interest rate for a specified period of time. It’s common for lenders to offer 30-day rate locks for a fee or to include the price of the rate lock into your loan. Some lenders will lock rates for longer periods, even exceeding 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.
With a rate lock, if interest rates rise, you’re locked into the guaranteed rate. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. 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.
A strong economy usually means more people buying homes, which drives demand for mortgages. This increased demand can push rates higher. The opposite is also true; less demand can trigger a drop in rates.
Current mortgage rate environment
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. 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.
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.
To learn more about the different rate averages Bankrate publishes, see “Bankrate’s Rate Averages Methodology.”
Current refinance rates
Current 30-year mortgage and refinance rates
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Learn more about specific loan type rates
LOAN TERM PURCHASE RATES REFINANCE RATES
The table above links out to loan-specific content to help you learn more about rates by mortgage type.
30-Year Loan 30 Year Fixed Mortgage Rates 30-Year Mortgage Refinance Rates
20-Year Loan 20-Year Mortgage Rates Current 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Interest Rates 15-Year Mortgage Refinance Rates
10-Year Loan Current 10 Year Mortgage Rates 10-Year Mortgage Refinance Rates
FHA Loan FHA Mortgage Rates FHA Mortgage Refi Rates
VA Loan VA Loan Interest Rates VA Refinance Loan Rates
ARM Loan ARM Mortgage Rates ARM Refinance Rates
Jumbo Loan Jumbo Loan Interest Rates Jumbo Mortgage Refinance Rates