Mortgage and refinance rates, November 19, 2020 | Rates fall

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Several benchmark mortgage rates declined today. The average rates on 30-year fixed and 15-year fixed mortgages both tapered off. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also receded.

Average mortgage interest rates
Product Rate Last week Change
30-year fixed 2.96% 3.02% -0.06
15-year fixed 2.47% 2.50% -0.03
30-year fixed jumbo 2.94% 3.07% -0.13
30-year fixed refinance 3.03% 3.16% -0.13

Rates as of November 19, 2020.

Rates for mortgages are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it could be a great time to lock in a rate. Just make sure you’ve looked around for the best rate first.

View mortgage rates for a variety of rate terms.

Mortgage rates for home purchase
30-year mortgages

The average 30-year fixed-mortgage rate is 2.96 percent, down 6 basis points over the last seven days. Last month on the 19th, the average rate on a 30-year fixed mortgage was higher, at 3.03 percent.

At the current average rate, you’ll pay a combined $419.45 per month in principal and interest for every $100,000 you borrow. That’s lower by $3.23 than it would have been last week.

You can use Bankrate’s home loan calculator to figure out your monthly payments and see how much you’ll save by adding extra payments. It will also help you determinehow much interest you’ll pay over the life of the loan.

15-year mortgages

The average 15-year fixed-mortgage rate is 2.47 percent, down 3 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $665 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, 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.

5/1 ARMs

The average rate on a 5/1 ARM is 3.03 percent, falling 1 basis point over the last week.

These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.03 percent would cost about $423 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Rate lock advice and recommendations

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. Certain mortgage lenders will lock rates for longer periods of time, even exceeding 60 days, but those locks can be costly. 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 mortgage 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 there is no guarantee of where mortgage rates will head in the future, it may be smart to lock in a low rate instead of holding out on rates for potentially decline further.

It’s important to keep in mind: During the COVID-19 pandemic, all aspects of real estate and mortgage closings are taking a longer time period than usual. Expect the closing on a new mortgage to take at least 60 days, with refinancing taking at least a month.

Refinance mortgage rates
30-year fixed refinance rates

The average rate to refinance a 30-year fixed-rate mortgage is 3.03 percent, down 13 basis points over the past seven days. A month ago, the average rate on a 30-year mortgage was 3.20 percent.

At the current average rate, you’ll pay P&I of about $423 for every $100,000 you borrow. Compared to a week ago, that’s $7 lower. Compared to a month ago, that’s $9 lower.

To learn more about the different rate averages Bankrate publishes, see “Bankrate’s Rate Averages Methodology.”

Read more:
Refi rates today
30-Year interest rates
Shopping for a mortgage lender?
Optimum First Mortgage Review
Ally Home Mortgage Review
Citi Bank Mortgage Review
Sebonic Financial Mortgage Review
Check rates for specific loan types
LOAN TYPE PURCHASE RATES REFINANCE RATES
The index above links out to loan-specific pages to help our readers learn more about rates by product type.
30-Year Loan 30-Year Interest Rates 30-Year Mortgage Refinance Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Rates 15-Year Refi Interest Rates
10-Year Loan Current 10 Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Interest Rates FHA Refinance Rates
VA Loan Current VA Mortgage Rates Current VA Refinance Rates
ARM Loan ARM Loan Rates ARM Refinance Interest Rates
Jumbo Loan Current Jumbo Mortgage Rates Jumbo 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.

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