Multiple key mortgage rates slid lower today. The average rates on 30-year fixed and 15-year fixed mortgages both slid down. The average rate on 5/1 adjustable-rate mortgages, meanwhile, remained steady.
Mortgage rates are in a constant state of flux, but they remain low by historical standards. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just be sure to shop around.
Compare mortgage interest rates from lenders nationwide.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.04 percent, a decrease of 5 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.06 percent.
At the current average rate, you’ll pay a combined $423.76 per month in principal and interest for every $100,000 you borrow. That’s $2.71 lower, compared with last week.
You can use Bankrate’s mortgage payment calculator to get a handle on what your monthly payments would be and see the effect of adding extra payments. It will also help you computehow much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.56 percent, down 3 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $670 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 adjustable rate mortgageis 3.12 percent, unchanged from a week ago.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.12 percent would cost about $428 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Mortgage rate predictions for this week.
Want to see where rates are at this moment? Lenders across the nation respond to our weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
Today’s mortgage interest rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 3.04% 3.09% -0.05
15-year mortgage rate 2.56% 2.59% -0.03
30-year jumbo mortgage rate 3.08% 3.11% -0.03
30-year mortgage refinance rate 3.14% 3.06% +0.08
Rates accurate as of October 7, 2020.
Lock your mortgage rate now or wait?
A rate lock guarantees your interest rate for a specified period of time. Lenders often offer 30-day rate locks for a nominal fee or roll the price of the lock into your loan. Some lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks to avoid unnecessary risk.
The benefit of a rate lock is that if interest rates rise, you’re locked into the guaranteed rate. You may be able to find a lender that offers a floating rate lock. A floating rate lock lets you get a lower rate if interest rates decline before closing your loan. It could be worth the cost in a declining rate environment. Because mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.
Remember: During the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, with refinancing taking at least a month.
Why mortgage rates change
A number of economic factors influence mortgage rates. Among them are inflation and unemployment. Higher inflation typically leads to higher mortgage rates. The opposite is also true; when inflation is low, mortgage rates typically are as well. As inflation increases, the dollar loses value. That drives investors away from mortgage-backed securities (MBS), which causes the prices to decrease and yields to increase. When yields move higher, rates become more expensive for borrowers.
Generally speaking, when the economy is strong, more people buy homes. That drives demand for mortgages. Increased demand for mortgages can cause rates to increase. The opposite is also true; less demand can lead to lower rates.
What are current mortgage rates?
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. For a while, some lenders were increasing rates because they were struggling to deal with the demand. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s on-site rate averages.”
Read about other loan terms:
Refinance interest rates today
30 year mortgage rates today
Searching for the right mortgage lender?
Movement Mortgage Review
AmeriSave Mortgage Corporation Mortgage Review
Churchill Mortgage Review
Valley National Bank Mortgage Review
Learn more about specific loan type rates
LOAN TERM PURCHASE RATES REFINANCE RATES
The table above links out to loan-specific pages to help you learn more about rates by mortgage type.
30-Year Loan 30 Year Fixed Mortgage Rates 30-Year Refinance Rates
20-Year Loan 20-Year Fixed Mortgage Rates 20-Year Mortgage Refinance Rates
15-Year Loan 15-Year Mortgage Interest Rates 15-Year Refi Interest Rates
10-Year Loan Current 10 Year Mortgage Rates Current 10-Year Refinance Rates
FHA Loan FHA Mortgage Loan Rates FHA Refinance Interest Rates
VA Loan Current VA Mortgage Rates Current VA Refinance Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refi Mortage Rates
Jumbo Loan Jumbo Loan Interest Rates Jumbo Refi Interest Rates