Today’s mortgage interest rates have come down. This is what it means for you



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A variety of major mortgage rates have come down today. Average interest rates for 15-year and 30-year fixed mortgages have fallen, as have variable rates for 5/1 variable rate mortgages. Although mortgage rates change and rise slowly, they remain low. If you are thinking of buying a home, you may be eligible to apply for a mortgage right now. Before buying a home, don’t forget to think about your personal needs and financial situation, and speak with various 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 3.14%, which is a decrease of 5 basis points from a week ago. (One basis point equals 0.01%.) This is the most frequently 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. While you’ll pay more interest over time because you’re paying off your loan over a longer period of time, if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a smart option.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.44%, down 2 basis points from seven days ago. You will certainly 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. However, as long as you are able to afford the monthly payments, a 15-year loan has several advantages. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.

5/1 adjustable rate mortgages

A 5/1 adjustable rate mortgage has an average rate of 3.13%, down 5 basis points from a week ago. For the first five years, you will typically get a lower interest rate with an ARM 5/1 compared to a 30-year fixed mortgage. However, market fluctuations may cause your interest rate to increase after this period, as stated in your loan terms. For this reason, an adjustable rate mortgage can be a good option if you plan to sell or refinance your home before the rate changes. Otherwise, market fluctuations can dramatically increase your interest rate.

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 nationwide:

Current average mortgage interest rates

Type of loan Interest rate A week ago Switch
30-year fixed rate 3.14% 3.19% -0.05
15-year fixed rate 2.44% 2.46% -0.02
Giant 30-year mortgage rate 2.76% 2.80% -0.04
30-year mortgage refinancing rate 3.13% 3.16% -0.03

Updated November 4, 2021.

How to find personalized 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 home loan, you will need to consider your goals and your overall financial situation. Specific interest rates will vary based on factors such as credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Typically, you want a good credit score, higher 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 – like credit unions and online lenders in addition to local and state banks – to get the loan 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 common mortgages are for 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. Another important distinction is between 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 for a variable rate mortgage are only the same for a certain period of time (most often five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

When choosing between a fixed rate mortgage and an adjustable rate mortgage, you need to think about how long you plan to stay in your home. For those who plan to stay in a new home for the long term, fixed rate mortgages may be the best option. While variable rate mortgages may have lower interest rates initially, fixed rate mortgages are more stable over time. 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. The best loan term depends on your situation and your goals, so be sure to consider what’s important to you when choosing a mortgage.


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