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A variety of major mortgage rates inched up today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both made gains. We also saw inflation in the average rate of 5/1 adjustable-rate mortgages. Mortgage interest rates are never set in stone, but interest rates are historically low these days. For those looking to lock in a fixed rate, now is an excellent time to finance a house. But as always, make sure to first take your personal goals and circumstances into account before purchasing a house, and compare offers to find a lender that can best meet your needs.
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.20%, which is an increase of 2 basis points from 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 often have a higher 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 good if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.47%, which is an increase of 1 basis point compared to a week 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 if you’re able to afford the monthly payments: You’ll typically get a lower interest rate, and you’ll pay less in interest overall because you’re paying off the mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 3.20%, an uptick of 2 basis points from seven days ago. For the first five years, you’ll usually get a lower interest rate with a 5/1 ARM compared to a 30-year fixed mortgage. However, changes in the market could cause your interest rate to increase after that (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, market shifts mean your interest rate may be much higher once the rate adjusts.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:
Current average mortgage interest rates
| Loan type | Interest rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed rate | 3.20% | 3.18% | +0.02 |
| 15-year fixed rate | 2.47% | 2.46% | +0.01 |
| 30-year jumbo mortgage rate | 2.76% | 2.81% | -0.05 |
| 30-year mortgage refinance rate | 3.20% | 3.16% | +0.04 |
Updated on Oct. 27, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to consider your current finances and goals when searching for a mortgage. Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home: Be sure to consider additional factors such as fees, closing costs, taxes and discount points. Be sure to comparison shop with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s best for you.
What is a good loan term?
An especially important thing to consider when choosing a mortgage is the loan term, or 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. The interest rates in a fixed-rate mortgage are set for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (most frequently five, seven or 10 years), then the rate adjusts annually based on the market rate.
Another thing to take into consideration when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home. Fixed-rate mortgages might be a better fit for those who plan on living in a home for quite some time. While adjustable-rate mortgages can sometimes offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. However you might get a better deal with an adjustable-rate mortgage if you’re only planning to keep your house for a few years. The best loan term all all depends on your own situation and goals, so make sure to take into consideration what’s important to you when choosing a mortgage.