Mortgage interest rates today for October 4, 2021: rates go up



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A few closely watched mortgage rates climbed higher today. Both 15-year and 30-year fixed mortgage rates have increased. We are also witnessing a rise in the average rate for mortgage loans at a 5/1 revisable rate. While mortgage rates are constantly changing, they are currently at an all-time low. For this reason, now is the perfect time for potential buyers to get a fixed rate. Before buying a home, don’t forget to take your personal needs and financial situation into account, and compare offers from different lenders to find the one that’s right for you.

30-year fixed rate mortgages

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.18%, which is 14 basis points higher than seven days ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most common 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. While you will pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.46%, which is an increase of 16 basis points from a week ago. You will likely have a higher 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. But a 15-year loan will usually be the best deal, as long as you can afford the monthly payments. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.20%, up 15 basis points from a week ago. With an ARM mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But you could end up paying more after this period, depending on the terms of your loan and how the rate changes with the market rate. For borrowers who plan to sell or refinance their home before rates change, an ARM might be a good option. But if it doesn’t, you might be forced to pay a much 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:

Average mortgage interest rates

Product Rate Last week Switch
30 years fixed 3.18% 3.04% +0.14
15 years fixed 2.46% 2.30% +0.16
Giant 30-year mortgage rate 2.80% 2.79% +0.01
30-year mortgage refinancing rate 3.15% 3.01% +0.14

Prices as of October 4, 2021.

How to find the best mortgage rates

When you’re ready to apply for a loan, you can connect with a local mortgage broker or search online. Make sure you think about your current finances and your goals when looking for a mortgage. Things that affect the mortgage rate you might get include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Typically, you want a good credit score, larger down payment, lower DTI, and lower LTV to get a lower interest rate. Besides the mortgage interest rate, factors such as closing costs, fees, points of discount, and taxes can also affect the cost of your home. 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 right for you.

How does the term of the loan affect my mortgage?

An important factor to consider when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and adjustable rate mortgages. For fixed rate mortgages, interest rates are stable throughout the life of the loan. For variable rate mortgages, interest rates are fixed for a number of years (typically five, seven, or 10 years), and then the rate fluctuates annually based on the market rate.

One factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. Fixed rate mortgages may be more suitable for people who plan to live in a house for a period of time. Fixed rate mortgages offer more stability over time than variable rate mortgages, but variable rate mortgages can sometimes offer lower interest rates initially. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage might give you a better deal. 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 what is most important to you when choosing a mortgage.


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