Multiple key mortgage rates rose today. The average rates on 30-year fixed and 15-year fixed mortgages both moved up. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, decreased.
Today’s mortgage interest rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 3.06% 3.01% +0.05
15-year mortgage rate 2.62% 2.58% -0.04
30-year jumbo mortgage rate 2.98% 3.05% -0.07
30-year mortgage refinance rate 3.07% 3.12% -0.05
Rates accurate as of November 6, 2020.
Rates for mortgages 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 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 3.06 percent, an increase of 5 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 $424.85 per month in principal and interest for every $100,000 you borrow. That’s an additional $2.71 per $100,000 compared to last week.
You can use Bankrate’s mortgage rate 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 determinehow much interest you’ll pay over the life of the loan.
The average 15-year fixed-mortgage rate is 2.62 percent, up 4 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $672 per $100,000 borrowed. The bigger payment may be a little more difficult 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 faster.
The average rate on a 5/1 ARM is 3.03 percent, down 1 basis point over the last week.
These types of loans are best for people who expect to sell or refinance 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 3.03 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.
When to lock your mortgage rate
A rate lock guarantees your mortgage 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 expensive. In today’s unstable market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.
The benefit of a rate lock is that 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 there is no guarantee of where mortgage rates will head in the future, it may be smart to lock in a low rate instead of holding out on rates for potentially decline further.
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, with refinancing taking at least a month.
Factors that influence mortgage rates
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.
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.
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. The general consensus: If the economy continues to bounce back, and if drugmakers are successful in developing a vaccine, rates will rise. However, if the economy suffers pandemic-related setbacks, rates will stay low or even fall further.
Is now a good time to buy a house?
There’s never a straightforward answer to this question. It always depends. Do you have a reliable income, a good credit score and money saved for a down payment and repairs? If you can answer all of those questions affirmatively, you’re ready to buy.
However, the pandemic has led to an even greater shortage of homes. That’s caused a bidding war 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.”
Read about other loan terms:
Current refinance rates
Today’s 30-year mortgage rates
Searching for the right lender?
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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.