Multiple key mortgage rates climbed higher today. The average rates on 30-year fixed and 15-year fixed mortgages both advanced. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, receded.
Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 3.04% 2.96% +0.08
15-year fixed rate 2.58% 2.47% -0.11
30-year fixed jumbo rate 2.95% 2.97% -0.02
30-year fixed refinance rate 3.04% 3.09% -0.05
Rates last updated on November 24, 2020. These rates are averages based on the assumptions shown here. Actual rates on-site may vary.
Mortgage rates are constantly changing, but overall, they are very low by historical standards. If you’re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just be sure to shop around.
Compare mortgage rates in your area now.
The average rate for a 30-year fixed mortgage is 3.04 percent, up 8 basis points over the last seven days. Last month on the 24th, the average rate on a 30-year fixed mortgage was lower, at 3.03 percent.
At the current average rate, you’ll pay principal and interest of $423.76 for every $100,000 you borrow. That’s an increase of $4.31 over what you would have paid last week.
You can use Bankrate’s mortgage loan calculator to get a handle on what your monthly payments would be 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.
The average 15-year fixed-mortgage rate is 2.58 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. That may squeeze your monthly budget than a 30-year mortgage would, 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 adjustable rate mortgageis 3.03 percent, down 1 basis point from a week ago.
These types of loans are best for those who expect to refinance or sell 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 3.03 percent would cost about $423 for each $100,000 borrowed over the initial five years, but could ratchet higher 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 mortgage interest rates forecast.
Want to see where rates are right now? 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:
Should you lock a mortgage rate?
A rate lock guarantees your 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 lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be pricey. 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.
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.
Why mortgage rates change
A number of economic factors influence mortgage rates. Among them are inflation and unemployment. Higher inflation typically leads to higher mortgage rates. The opposite is also true; when inflation is low, mortgage rates typically are as well. As inflation increases, the dollar loses value. That drives investors away from mortgage-backed securities (MBS), which causes the prices to decrease and yields to increase. When yields move higher, rates become 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.
Mortgage rate snapshot
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally 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 hovered around all-time lows in recent months, but where they go from here is nearly impossible to predict. The direction of rates depends largely on the direction of the economy. It also depends on how well the coronavirus pandemic is contained. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. On the other hand, if the economy struggles because of coronavirus-related setbacks, mortgage rates will remain at record lows or fall even 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 “Bankrate’s Rate Averages Methodology.”
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Check rates for specific loan types
LOAN TYPE PURCHASE RATES REFINANCE RATES
The table above links out to loan-specific content to help our readers 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 Current 20-Year Refinance Rates
15-Year Loan Current 15 Year Mortgage Rates 15-Year Mortgage Refinance Rates
10-Year Loan Current 10 Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Loan Interest Rates FHA Refinance Interest Rates
VA Loan VA Loan Interest Rates VA Refi Interest Rates
ARM Loan ARM Interest Rates Current ARM Refinance Rates
Jumbo Loan 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.