Several benchmark mortgage rates ticked up today. The average rates on 30-year fixed and 15-year fixed mortgages both rose. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also ticked up.
Rates for mortgages are in a constant state of flux, but they remain much lower overall than they were before the Great Recession. If you’re in the market for a mortgage, it may be a great time to lock in a rate. Just don’t do so without shopping around first.
Compare mortgage rates in your area now.
30-year fixed mortgages
The average rate you’ll pay for a 30-year fixed mortgage is 3.09 percent, an increase of 9 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.07 percent.
At the current average rate, you’ll pay a combined $426.47 per month in principal and interest for every $100,000 you borrow. That’s up $4.87 from what it would have been last week.
You can use Bankrate’s mortgage payment calculator to get a handle on what your monthly payments would be and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.59 percent, up 11 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $671 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
The average rate on a 5/1 ARM is 3.12 percent, up 8 basis points since the same time last week.
These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be materially 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 projections.
Want to see where rates are right now? 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:
Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 3.09% 3.00% +0.09
15-year fixed rate 2.59% 2.48% -0.11
30-year fixed jumbo rate 3.11% 3.03% +0.08
30-year fixed refinance rate 3.06% 2.97% +0.09
Updated on September 30, 2020.
Should you lock a mortgage rate?
A rate lock guarantees your interest rate for a specified period of time. It’s common for lenders to offer 30-day rate locks for a fee or to include the price of the rate lock into your loan. Some lenders will lock rates for longer periods, even exceeding 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.
With a rate lock, if interest rates rise, you’re locked into the guaranteed rate. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. 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 do mortgage rates move up and down?
Mortgage rates are influenced by a range of economic factors, from inflation to unemployment numbers. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives off investors for mortgage-backed securities, causing the prices to fall and yields to climb. When yields climb, rates get more expensive for borrowers.
A strong economy usually means more people buying homes, which drives demand for mortgages. This increased demand can push rates higher. The opposite is also true; less demand can trigger a drop in rates.
Current mortgage rate environment
Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, 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 “Bankrate’s Rate Averages Methodology.”
Other daily news articles:
Refinance rates today
30-Year interest rates
Searching for the right lender?
Direct Home Lending Mortgage Review
Ally Home Mortgage Review
CityWorth Mortgage Review
Sebonic Financial Mortgage Review
Compare mortgage rates for various loan types
LOAN TYPE PURCHASE RATES REFINANCE RATES
The index above links out to loan-specific content to help you learn more about rates by product type.
30-Year Loan 30 Year Fixed Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan Current 20 Year Mortgage Rates 20-Year Refinance Rates
15-Year Loan Today’s 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Interest Rates Current 10-Year Refinance Rates
FHA Loan Current FHA Mortgage Rates FHA Refinance Rates
VA Loan VA Loan Interest Rates VA Refi Interest Rates
ARM Loan ARM Loan Rates Current ARM Refinance Rates
Jumbo Loan Jumbo Loan Rates Jumbo Mortgage Refinance Rates