Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

Originally Published: Jan 28, 2021
Originally Published: Jan 28, 2021 Last Updated: Jan 28, 2021 6 min read
Money; Getty Images

Homeownership remains a major goal for many American despite the economic impact of the pandemic, with 1-in-6 planning on purchasing a home within the next two years.

Mortgage rates decreased for the second day in a row.

Today’s Mortgage Rates: 30-Year Fixed Loans, 15-Year Fixed Loans, and More

The average rate on a 30-year fixed-rate mortgage was 3.029% on Wednesday — down from 3.091% the previous day.

Mortgage Rate Chart
Loan type Average Rate
30-Year Fixed Loan 3.029%
15-Year Fixed Loan 2.279%
30-Year FHA Loan 2.892%
30-Year VA Loan 2.913%
30-Year Jumbo Loan 3.554%
Source: Money | Date: Jan. 27, 2021 | Rates assume a credit score of 700

Money's daily mortgage rates show the average rate offered by over 8,000 lenders across the United States the previous day. They reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. The rates assume a 20% down payment and include discount points.

Freddie Mac's benchmark Primary Mortgage Market Survey put mortgage rates at 2.73% with 0.7 points paid for the week ending January 28. That's a slight drop of 0.04 percentage points from last week and 0.12 percentage points higher than the all-time low of 2.65%. The mortgage purchaser's weekly survey reflects borrowers who put 20% down on conforming loans and have excellent credit.

Find your actual rate at Quicken Loans
Click below to get started and see your rate today
View Rates for May 28, 2023

How do I get the best mortgage rates?

Mortgage rates vary from state-to-state. On Wednesday, borrowers in Arkansas were quoted the lowest mortgage rates — at 2.988%. People looking for mortgages in Nevada saw the highest average rate at 3.166%.

Nationwide, borrowers with the highest credit scores, 740 and above, were quoted rates averaging 2.841%, while those with credit of 620 or below were shown rates of 4.081%.

You may be able to negotiate a better mortgage rate if you shop around or if you have other accounts with the lender. (To get started, take a look at Money's picks for the best mortgage lenders.) Lately, some lenders have been hiking up advertised rates to keep demand in check, so you may be offered a lower rate if you reach out directly.

Today's Mortgage Refinance Rates

Today's survey also shows that the offered rate for a 30-year refinance for someone with a 740 credit score was 3.111% on Wednesday. In January 2020, the average mortgage rate (including fees) was around 3.8%.

Mortgage Refinance Rate Chart
Loan type Average Rate
30-Year Fixed Loan 3.111%
15-Year Fixed Loan 2.557%
30-Year FHA Loan 3.374%
30-Year VA Loan 3.374%
30-Year Jumbo Loan 3.486%
Source: Money | Date: Jan. 27, 2021 | Rates assume a credit score of 740

What else is happening in the housing market today

Seventeen percent of Americans who have not recently purchased a home say they are planning to do so within the next two years, according to a new survey commissioned by MyWalletJoy. Among those between the ages of 18-34, the percentage was even higher at 28%.

“Although it has been a tough year for Americans in all aspects of personal finance and big life moments, we are happy to see that optimism around buying a home is still very much alive,” said Yvette Ramos, a MyWalletJoy spokesperson.

The interest in buying a home has remained high despite the economic strain caused by the pandemic. While low interest rates have lured many buyers into the market already, others have been forced to re-evaluate how they would finance a purchase.

Over 52% of those surveyed are planning to make a down payment of between 3% and 19%, while only 14% plan to put down 20%. Forty-three percent are planning to use personal savings to finance the purchase, up from 42% in February of last year. Meanwhile, 18% plan on taking out an additional loan.

While homeownership is still a goal for many, the survey found that many potential home buyers feel they are not financially ready. Thirty-one percent of those surveyed cited a low salary as a reason for not planning on purchasing a home. Another 19% cited high home prices as the main reason they won't be buying within the next two years.

Mortgage Tip of the Week

Buying a home can be daunting. Follow these expert tips to make the process easier.

Ralph DiBugnara, president of Home Qualified, a digital resource for buyers, sellers, and real estate agents, on what to look for in a virtual home tour:

Bottom line:

Qualifying for a Mortgage Is Surprisingly Difficult Right Now

A Key Indicator Suggests Mortgage Rates' Epic Decline May Soon End

As Prices Soar, 6 Tricks for Finding a House You Can Actually Afford