Current mortgage rate for Oct. 15, 2021: Rates go up - CNET

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A few notable mortgage rates inched upward today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both grew. We also saw an increase in the average rate of 5/1 adjustable-rate mortgages. Although mortgage rates are always moving, they are generally lower right now than they've been in years. For those looking to secure a fixed rate, now is an ideal time to finance a house. But as always, make sure to first consider your personal goals and circumstances before purchasing a home, and compare offers to find a lender who can best meet your needs.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.20%, which is an increase of 5 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. 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 monthly payments.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.43%, which is an increase of 2 basis points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. But a 15-year loan will usually be the better deal, as long as you're able to afford the monthly payments. You'll most likely get a lower interest rate, and you'll pay less interest because you're paying off the mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.21%, an uptick of 6 basis points from the same time last week. You'll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But shifts in the market could cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage may make sense for you. Otherwise, shifts in the market means your interest rate might be a good deal higher once the rate adjusts.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Loan type	Interest rate	A week ago	Change
30-year fixed rate	3.20%	3.15%	+0.05
15-year fixed rate	2.43%	2.41%	+0.02
30-year jumbo mortgage rate	2.80%	2.79%	+0.01
30-year mortgage refinance rate	3.17%	3.13%	+0.04

Updated on Oct. 15, 2021.

How to shop for the best mortgage rate

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. In order to find the best home mortgage, you'll need to take into account your goals and current finances. Things that affect the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and debt-to-income ratio. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Beyond the mortgage rate, factors including closing costs, fees, discount points and taxes might also impact the cost. You should speak with a variety of lenders -- including local and national banks, credit unions and online lenders -- and comparison shop to find the best loan for you.

What is a good loan term?

When picking a mortgage, you should 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. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life 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 (usually five, seven or 10 years). After that, the rate fluctuates annually based on the market interest rate.

One factor to take into consideration when deciding between a fixed-rate and 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. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time. If you aren't planning to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage could give you a better deal. There is no best loan term as an overarching rule; it all depends on your goals and current financial situation. Make sure to research and understand what's most important to you when choosing a mortgage.

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