Mortgage rates were mixed today, but one key rate ticked downward. The average for a 30-year fixed-rate mortgage were down, but the average rate on a 15-year fixed remained steady. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages held firm.
Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could be a great time to lock in a rate. Just be sure to shop around.
View mortgage rates for a variety of loan types.
30-year fixed mortgages
The average 30-year fixed-mortgage rate is 3.02 percent, a decrease of 2 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.01 percent.
At the current average rate, you’ll pay a combined $422.68 per month in principal and interest for every $100,000 you borrow. That’s a decline of $1.08 from 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 2.55 percent, unchanged over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $669 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage 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 adjustable rate mortgageis 3.10 percent, unchanged over the last 7 days.
These loan types are best for those 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 3.10 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 currently? 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:
Average mortgage interest rates
Product Rate Last week Change
30-year fixed 3.02% 3.04% -0.02
15-year fixed 2.55% 2.55% N/C
30-year fixed jumbo 3.06% 3.08% -0.02
30-year fixed refinance 3.13% 3.11% +0.02
Rates as of October 15, 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 expensive. 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. 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.
It’s important to keep in mind: 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.
Why do mortgage rates move up and down?
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.
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 average rates.”
Refinance rates today
30 year mortgage rates today
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LOAN TYPE PURCHASE RATES REFINANCE RATES
The table above links out to loan-specific pages to help you learn more about rates by product type.
30-Year Loan Current 30 Year Mortgage Rates Current 30 Year Refinance Rates
20-Year Loan 20-Year Mortgage Interest Rates 20-Year Refi Rates
15-Year Loan Current 15 Year Mortgage Rates 15-Year Mortgage Refinance Rates
10-Year Loan Current 10 Year Mortgage Rates Current 10-Year Refinance Rates
FHA Loan FHA Loan Interest Rates FHA Refinance Interest Rates
VA Loan VA Loan Interest Rates VA Refi Interest Rates
ARM Loan ARM Mortgage Rates ARM Refi Mortage Rates
Jumbo Loan Jumbo Loan Interest Rates Jumbo Mortgage Refinance Rates