Multiple key mortgage rates fell today. The average rates on 30-year fixed and 15-year fixed mortgages both trended down. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also fell.
Rates for mortgages change daily, but they remain low by historical standards. If you’re in the market for a mortgage, it could be a great time to lock in a rate. Just make sure you shop around first.
Compare mortgage interest rates from lenders nationally.
30-year fixed mortgages
The average 30-year fixed-mortgage rate is 3.04 percent, a decrease of 4 basis points over the last week. This time 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 lower by $2.17 than it would have been last week.
You can use Bankrate’s mortgage loan calculator to figure out your monthly payments and see how much you’ll save by adding extra payments. It will also help you determinehow much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.55 percent, down 4 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $669 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, 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 3.10 percent, ticking down 1 basis point over the last 7 days.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.10 percent would cost about $427 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher 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 rate trends page.
Want to see where rates are at this moment? Lenders nationwide respond to Bankrate’s 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% 3.08% -0.04
15-year mortgage rate 2.55% 2.59% -0.04
30-year jumbo mortgage rate 3.08% 3.11% -0.03
30-year mortgage refinance rate 3.11% 3.08% +0.03
Rates accurate as of October 8, 2020.
Rate lock advice and recommendations
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, even exceeding 60 days, but those locks can be costly. In today’s volatile market, some lenders will lock an interest rate for only two weeks to avoid 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.
Keep in mind that 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, and expect refinancing to take at least a month..
What causes mortgage rates to move
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 landscape
Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. 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 Rate Averages.”
Read about other loan terms:
Refi rates today
Current 30-year mortgage rates
Searching for the right lender?
Movement Mortgage Review
Cardinal Financial Mortgage Review
Churchill Mortgage Review
Valley National Bank Mortgage Review
Check rates for specific loan types
PRODUCT PURCHASE RATES REFINANCE RATES
The chart above links out to loan-specific pages to help you learn more about rates by mortgage type.
30-Year Loan Current 30 Year Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan 20-Year Mortgage Interest 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 10-Year Mortgage Refinance Rates
FHA Loan FHA Loan Interest Rates FHA Refinance Interest Rates
VA Loan VA Loan Rates VA Refi Interest Rates
ARM Loan ARM Loan Rates ARM Refinance Rates
Jumbo Loan Jumbo Loan Interest Rates Jumbo Refi Interest Rates