Mortgage rates showed no clear direction today, but one key rate floated higher. The average for a 30-year fixed-rate mortgage advanced, but the average rate on a 15-year fixed fell. Meanwhile, the average rate on 5/1 adjustable-rate mortgages remained steady.
Average mortgage interest rates
Product Rate Last week Change
30-year fixed 2.96% 2.95% +0.01
15-year fixed 2.45% 2.47% -0.02
30-year fixed jumbo 3.01% 2.93% +0.08
30-year fixed refinance 3.09% 3.00% +0.09
Rates as of November 27, 2020.
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 make sense to lock if you see a rate you like. Just be sure to shop around.
See mortgage rates for a variety of loan types.
30-year mortgage rates
The average 30-year fixed-mortgage rate is 2.96 percent, an increase of 1 basis point over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 3.01 percent.
At the current average rate, you’ll pay principal and interest of $419.45 for every $100,000 you borrow. That’s an additional $0.54 per $100,000 compared to last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
The average 15-year fixed-mortgage rate is 2.45 percent, down 2 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $664 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 3.03 percent, unchanged from a week ago.
These loan types are best for those 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 ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
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.
Are mortgage rates rising or falling?
Mortgage rates have fallen to record lows in recent months. Where theyâ€TMll go from here is nearly impossible to predict. Much depends on the direction of the economy, and how well public health officials can contain the coronavirus pandemic. 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 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 on-site rate averages.”
Current mortgage refinance rates
30-Year interest rates
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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.