A variety of major mortgage rates saw growth on Friday. While the 15-year fixed mortgage rates were the same, the interest rates on the 30-year fixed mortgages rose slightly. We are also witnessing a rise in the average rate for mortgage loans at a 5/1 adjustable rate. While mortgage rates are constantly changing, they’re pretty low right now. For those looking to get a fixed rate, now is the perfect time to buy a home. Before buying a home, don’t forget to think about your personal needs and financial situation, and compare offers from different lenders to find the one that’s right for you.
Compare mortgage rates nationwide from different lenders
30-year fixed rate mortgages
The 30-year average fixed mortgage interest rate is 3.10%, up 2 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most commonly used loan term. A 30 year fixed rate mortgage will usually have a lower monthly payment than a 15 year mortgage, but usually a higher interest rate. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.
15-year fixed rate mortgages
The average rate for a 15-year fixed-rate mortgage is 2.37%, the same rate as seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. This usually comes down to being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest over the long term.
5/1 adjustable rate mortgages
A 5/1 ARM has an average rate of 3.12%, an addition of 2 basis points from a week ago. For the first five years, you will typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30 year fixed mortgage. But you could end up paying more after this period, depending on the terms of your loan and how the rate moves with the market rate. If you plan to sell or refinance your home before rates change, an ARM might be right for you. But if it doesn’t, you could be forced to pay a significantly higher interest rate if market rates change.
Mortgage rate trends
We use the rates collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:
Current average mortgage interest rates
|Type of loan||Interest rate||A week ago||Switch|
|30-year fixed rate||3.10%||3.08%||+0.02|
|15-year fixed rate||2.37%||2.37%||NC|
|Giant 30-year mortgage rate||3.16%||3.14%||+0.02|
|30-year mortgage refinancing rate||3.16%||3.13%||+0.03|
Updated June 4, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by contacting your local mortgage broker or by using an online calculator. In order to find the best mortgage loan, you will need to consider your goals and your overall financial situation. Things that affect the interest rate you might get on your mortgage include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Typically, you want a higher credit score, larger down payment, lower DTI, and 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 consider other costs like fees, closing costs, taxes, and points of call as well. Be sure to shop around with multiple lenders – such as credit unions and online lenders in addition to local and state banks – to get a mortgage that’s best for you.
How does the term of the loan affect my mortgage?
When choosing a mortgage, it’s important to consider the length of the loan or the repayment schedule. The most commonly offered mortgage terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. The mortgages are then divided into fixed rate and adjustable rate mortgages. The interest rates for a fixed rate mortgage are set for the term of the loan. Unlike a fixed rate mortgage, the interest rates on a variable rate mortgage are only fixed for a certain period of time (usually five, seven, or 10 years). After that, the rate adjusts annually based on the market rate.
An important factor to consider when choosing between a fixed rate and an adjustable rate mortgage is how long you plan to live in your home. Fixed rate mortgages may be more suitable for those who plan to live in a house for a period of time. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages may offer lower interest rates upfront. You can get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. Generally, there is no better loan term; it all depends on your goals and your current financial situation. Make sure you do your research and think about your own priorities when choosing a mortgage.