Several benchmark mortgage rates climbed today. The average rates on 30-year fixed and 15-year fixed mortgages both cruised higher. The average rate on 5/1 adjustable-rate mortgages, meanwhile, declined.
Average mortgage interest rates
Product Rate Last week Change
30-year fixed 3.07% 3.01% +0.06
15-year fixed 2.63% 2.58% -0.05
30-year fixed jumbo 2.98% 3.03% -0.05
30-year fixed refinance 3.06% 3.11% -0.05
Rates as of November 5, 2020.
Rates for mortgages change daily, 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 make sure you shop around first.
Compare mortgage rates in your area now.
30-year mortgage rates
The average rate for a 30-year fixed mortgage is 3.07 percent, an increase of 6 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.04 percent.
At the current average rate, you’ll pay a combined $425.39 per month in principal and interest for every $100,000 you borrow. That’s an additional $3.25 per $100,000 compared to last week.
You can use Bankrate’s mortgage calculator to figure out your monthly payments and see what the effects of making extra payments would be. It will also help you computehow much interest you’ll pay over the life of the loan.
15-year mortgage rates
The average 15-year fixed-mortgage rate is 2.63 percent, up 5 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $673 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 ARM is 3.03 percent, ticking down 1 basis point over the last week.
These loan types are best for those who expect to refinance or sell 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 3.03 percent would cost about $423 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 currently? 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:
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 mortgage lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be expensive. In today’s unstable market, some lenders will lock an interest rate for just 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.
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, with refinancing taking 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.
Mortgage rate snapshot
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally 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.
Are mortgage rates rising or falling?
Mortgage rates have hovered around all-time lows in recent months, but where they go from here is nearly impossible to predict. The direction of rates depends largely on the direction of the economy. It also depends on how well the coronavirus pandemic is contained. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. On the other hand, if the economy struggles because of coronavirus-related setbacks, mortgage rates will remain at record lows or fall even further.
Is now a good time to buy a house?
The answer to “is now a good time to buy a house?” is never straightforward, regardless of the housing and mortgage rate environment. It always depends. Do you have a steady income, good credit and money saved for a down payment and repairs? If the answer to all of those is yes, you’re ready to buy.
However, the pandemic has exacerbated a shortage of homes, leading to bidding wars and rising prices. Those trends mean it can be a frustrating market for buyers.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”
Mortgage refinance rates today
30-Year interest rates
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LOAN TERM PURCHASE RATES REFINANCE RATES
The index above links out to loan-specific pages to help our readers learn more about rates by product type.
30-Year Loan Current 30 Year Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Mortgage Refinance Rates
15-Year Loan 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Interest Rates 10-Year Refi Interest Rates
FHA Loan FHA Mortgage Interest Rates FHA Refinance Rates
VA Loan VA Loan Rates VA Refinance Loan Rates
ARM Loan ARM Mortgage Rates ARM Refinance Interest Rates
Jumbo Loan Jumbo Loan Rates Jumbo Loan Refinance 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.