Today, several rates increased, while one major rate decreased. The average rates for the 30-year fixed mortgage and 5/1 adjustable-rate mortgage both went up slightly. Average rates for the 15-year fixed mortgage trended down. While mortgage rates always fluctuate, they're currently at historic lows. If you're looking for a new home, now might be the optimal time to lock in a low, fixed rate. Just be sure to review your finances and shop around with different lenders to find the mortgage that's right for you.
Find current mortgage rates for today
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 3.02%, which is an increase of 4 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will typically have a greater interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. You won't be able to pay off your house as quickly and you'll pay more interest over time, but a 30-year fixed mortgage is a good option if you're looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.30%, which is a decrease of 3 basis points compared to a week ago. You'll definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, if you're able to afford the monthly payments, there are several benefits to a 15-year loan. 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 ARM has an average rate of 3.04%, a rise of 5 basis points compared to last week. With an ARM mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, since the rate changes with the market rate, you might end up paying more after that time, as described in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an ARM could make sense for you. But if that's not the case, you might be on the hook for a significantly higher interest rate if the market rates shift.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders across the country:
Average mortgage interest rates
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed | 3.02% | 2.98% | +0.04 |
| 15-year fixed | 2.30% | 2.33% | -0.03 |
| 30-year jumbo mortgage rate | 2.78% | 2.80% | -0.02 |
| 30-year mortgage refinance rate | 3.00% | 2.96% | +0.04 |
Rates as of July 29, 2021.
How to shop for the best mortgage rate
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to think about your current financial situation and your goals when searching for a mortgage. Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to 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 additional factors such as fees, closing costs, taxes and discount points. Be sure to talk to a variety of lenders -- for example, local and national banks, credit unions and online lenders -- and comparison-shop to find the best mortgage loan for you.
What is a good loan term?
When picking a mortgage, it's important to consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed- and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are stable for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (typically five, seven or 10 years). After that, the rate fluctuates annually based on the market rate.
One thing to consider when choosing between a fixed- and an adjustable-rate mortgage is how long you plan on living in your house. For people who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared 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, though, an adjustable-rate mortgage could give you a better deal. The best loan term all depends on your personal situation and goals, so make sure to consider what's important to you when choosing a mortgage.
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July 30, 2021 at 01:15AM
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Current mortgage interest rates on July 29, 2021: Several rates increase - CNET
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