Current mortgage interest rates on July 27, 2021: Rates move up – CNET
A handful of important mortgage rates climbed up today. Average 15-year fixed mortgage rates moved downwards, while average 30-year fixed mortgage rates climbed.
At the same time, average rates for 5/1 adjustable-rate mortgages lifted.
Mortgage interest rates are never set in stone, but interest rates are historically low. For those looking to lock in a fixed rate, now is a good time to finance a home. But as always, make sure to first think about your personal goals and circumstances before purchasing a home, and shop around for a lender who can best meet your needs.
Find current mortgage rates for today
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 3.03%, which is a growth of 5 basis points from one week ago. (A basis point is equivalent to 0.01%.)
The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one — but usually a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.31%, which is a decrease of 2 basis points from seven days ago.
Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. However, as long as you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 3.05%, an increase of 7 basis points from seven days ago.
For the first five years, you’ll usually get a lower interest rate with a 5/1 ARM compared to a 30-year fixed mortgage. But shifts in the market might cause your interest rate to increase after that time, as detailed in the terms of your loan.
Because of this, an ARM may be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you could be on the hook for a significantly higher interest rate if the market rates change.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders nationwide:
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||3.03%||2.98%||+0.05|
|15-year fixed rate||2.31%||2.33%||-0.02|
|30-year jumbo mortgage rate||2.78%||2.81%||-0.03|
|30-year mortgage refinance rate||3.00%||2.99%||+0.01|
Rates accurate as of July 27, 2021.
How to shop for the best mortgage rate
When you are ready to apply for a loan, you can connect with a local mortgage broker or search online. When looking into home mortgage rates, consider your goals and current financial situation.
Things that affect what mortgage rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a good credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate.
The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider other costs such as fees, closing costs, taxes and discount points. Be sure to talk to multiple lenders — such as local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.
What is a good loan term?
One important consideration when choosing a mortgage is the loan term, or payment schedule.
The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only set for a certain amount of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the market interest rate.
One thing to take into consideration when choosing between a fixed-rate and adjustable-rate mortgage is how long you plan on staying in your house. Fixed-rate mortgages might be a better fit for those who plan on living in a home for quite some time. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages can sometimes offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage may give you a better deal. The best loan term all all depends on your specific situation and goals, so make sure to consider what’s important to you when choosing a mortgage.
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July 27, 2021 at 07:03AM