Several benchmark mortgage rates receded today. The average rates on 30-year fixed and 15-year fixed mortgages both tapered off. The average rate on 5/1 adjustable-rate mortgages, meanwhile, held firm.
Today’s mortgage interest rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 2.94% 3.04% -0.10
15-year mortgage rate 2.42% 2.58% -0.16
30-year jumbo mortgage rate 2.98% 2.95% +0.03
30-year mortgage refinance rate 3.03% 3.04% -0.01
Rates accurate as of December 1, 2020.
Mortgage rates are in a constant state of flux, but overall, they are very 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 be sure to shop around.
Find the right mortgage rate for your specific criteria.
30-year fixed mortgages
The average rate you’ll pay for a 30-year fixed mortgage is 2.94 percent, down 10 basis points over the last week. Last month on the 1st, the average rate on a 30-year fixed mortgage was higher, at 3.07 percent.
At the current average rate, you’ll pay $418.37 per month in principal and interest for every $100,000 you borrow. That’s lower by $5.39 than it would have been last week.
You can use Bankrate’s mortgage payment calculator to get a handle on what your monthly payments would be 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.
The average 15-year fixed-mortgage rate is 2.42 percent, down 16 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $663 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 more rapidly.
5/1 Adjustable Rate Mortgage Rates
The average rate on a 5/1 adjustable rate mortgageis 3.03 percent, unchanged from a week ago.
These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially 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 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 across the nation respond to Bankrateâ€TMs 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:
Factors that influence mortgage rates
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.
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.
Current mortgage rate environment
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.
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. Much depends on the direction of the economy, and how well public health officials can contain the coronavirus pandemic. 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?
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.”
Read about other loan terms:
Refinance interest rates today
Current 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.