---
title: 'Todays Best Mortgage and Refinance Rates: December 21, 2020 | Rates Decrease'
description: All-cash offers reached the smallest share of the housing market since 2007 as record-low interest rates make taking out a mortgage more affordable for most…
authors:
  - name: Leslie Cook
    role: Editor, Real Estate
    url: https://money.com/author/leslie-cook/
    bio: Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips.
    education: Bryn Mawr College, BA History
    certifications: Certified Personal Finance Counselor
    at_money_since: 2019
    articles: 797
    covers:
      - Mortgages
      - Banking
      - Credit
      - Economy and Politics
      - Housing
      - Identity Theft
      - Insurance
      - Loans
      - Personal Finance
      - Professional Services
      - Retirement
      - Taxes
    social:
      - https://twitter.com/LeslieLCook
      - https://www.linkedin.com/in/leslie-cook-9829b9198/
published: '2020-12-21T16:01:00.000Z'
modified: '2024-01-10T16:10:12.000Z'
section: Mortgages
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  - Apex41
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  - rates
  - today's rates
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type: Article
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![Mortgage-Rate-Dec-21-illo](https://img.money.com/2020/12/GettyImages-94474131_re2.jpg)

All-cash offers reached the smallest share of the housing market since 2007 as record-low interest rates make taking out a mortgage more affordable for most buyers. Bidding wars are still the norm, although fewer homes are seeing multiple offers come in.

Meanwhile, mortgage rates decreased again on Friday.

## Today's Mortgage Rates

The average rate for a 30-year fixed-rate purchase mortgage was 3.039% on Friday. On Thursday, the average rate was 3.055%.

Money's mortgage rates include the data from over 8,000 lenders across the United States and are updated daily. These rates include [discount points](https://money.com/mortgage-discount-points-refinance/) and represent what a borrower with a 20% down payment and 700 credit scores — roughly the national average FICO score — would have been quoted.

<table style="margin-bottom: -1px;border-left: solid 4px #39B54A"><tbody><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-weight: bold"><td style="background-color: #f2f2f2;font-size: 18px">Mortgage Rates for December 21, 2020</td></tr></tbody></table>

<table style="border-left: 4px solid #39b54a;border-bottom: 4px solid #39b54a;margin-bottom: -1px;height: 217px;width: 100%"><tbody><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-weight: bold;color: #fff"><td style="background-color: #53aadc;border-right: solid 2px #fff;width: 50%">Loan type</td><td style="background-color: #53aadc;width: 50%">Average Rate</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year Fixed Loan</td><td style="background-color: #f3f1e3">3.039%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #fff;border-right: solid 2px #F3F1E3">15-Year Fixed Loan</td><td style="background-color: #fff">2.288%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year FHA Loan</td><td style="background-color: #f3f1e3">3.017%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #fff;border-right: solid 2px #F3F1E3">30-Year VA Loan</td><td style="background-color: #fff">3.143%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year Jumbo Loan</td><td style="background-color: #f3f1e3">3.592%</td></tr></tbody></table>

##### Source: Money | Date: Dec. 18, 2020 | Rates assume a credit score of 700

Freddie Mac's widely quoted Primary Mortgage Market Survey put rates at 2.67% with 0.7 points paid for the week ending December 17. It is the 15th new record set this year. The mortgage purchaser's [weekly](https://money.com/current-mortgage-rates/) survey reflects borrowers who put 20% down on conforming loans and have excellent credit.

## How do I get the best mortgage rates?

Mortgage rates vary from [state to state](https://money.com/best-mortgage-rates-by-state-tips/). On Friday, borrowers in Illinois were quoted the lowest mortgage rates — at 2.944%. People looking for mortgages in Nevada saw the highest average rate at 3.164%.

Nationwide, borrowers with the highest credit scores, 740 and above, were quoted rates averaging 2.817%, while those with credit of 620 or below were shown rates of 4.489%.

You may be able to negotiate a [lower rate](https://money.com/get-the-lowest-mortgage-rate/) if you shop around or if you have other accounts with the lender. (Money's picks for the best mortgage lenders are [here.](https://money.com/best-mortgage-lenders/)) Currently, some lenders are 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

Money's survey also shows that the offered rate for a 30-year refinance for someone with a 740 credit score was 3.137% on Friday. Last December, the average mortgage rate (including fees) was 3.88%.

<table style="margin-bottom: -1px;border-left: solid 4px #39B54A"><tbody><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-weight: bold"><td style="background-color: #f2f2f2;font-size: 18px">Refinance Rates for December 21, 2020</td></tr></tbody></table>

<table style="border-left: solid 4px #39B54A;border-bottom: solid 4px #39B54A;width: 100%;margin-bottom: -1px"><tbody><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-weight: bold;color: #fff"><td style="background-color: #53aadc;border-right: solid 2px #fff;width: 50%">Loan type</td><td style="background-color: #53aadc;width: 50%">Average Rate</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year Fixed Loan</td><td style="background-color: #f3f1e3">3.137%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #fff;border-right: solid 2px #F3F1E3">15-Year Fixed Loan</td><td style="background-color: #fff">2.587%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year FHA Loan</td><td style="background-color: #f3f1e3">3.447%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #fff;border-right: solid 2px #F3F1E3">30-Year VA Loan</td><td style="background-color: #fff">3.414%</td></tr><tr style="font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif"><td style="background-color: #f3f1e3;border-right: solid 2px #fff">30-Year Jumbo Loan</td><td style="background-color: #f3f1e3">3.526%</td></tr></tbody></table>

##### Source: Money | Date: Dec. 18, 2020 | Rates assume a credit score of 740

A homeowner with a $200,000 mortgage balance currently paying 3.88% on a 30-year could potentially cut their monthly payment from about $940 to about $858 by financing at the current lower rates. To determine [if it's worth it to refinance your mortgage](https://money.com/is-now-a-good-time-to-refinance/), also consider the closing fees you paid on your current mortgage, how much your new lender is charging and how long you have left on your loan term. (Our picks for the best lenders for refinancing are [here](https://money.com/best-mortgage-refinance/)).

## What else is happening in the housing market today

Record low interest rates have led to fewer all-cash offers so far this year, according to online real estate site [Redfin](https://www.redfin.com/news/all-cash-home-purchases-smallest-share-since-2007/). About 24% of homes sold to date have been bought with cash, down from about 25% in 2019 and 10% less than the record high of 34% in 2013.

“With interest payments lower than ever before, many homebuyers would prefer taking out a home loan and putting their cash somewhere else, like the stock market, emergency savings accounts or home renovations,” said Daryl Fairweather, Redfin's chief economist.

Nassau County on Long Island in New York saw the largest share of all-cash offers, with almost 49% of home purchases being made with cash. The area is attractive to those leaving the Manhattan and Queens areas, as the availability of remote work makes it possible for more people to leave the high urban density of the city for more spacious living conditions in the suburbs.

All cash offers are more attractive to sellers because they can speed up the closing and eliminate the possibility of appraisal or financial issues popping up that could derail the sale. For buyers who can afford to pay all cash, they offer significant savings, since you don't have to pay interest on a loan.

Making an all-cash offer can also provide an advantage for buyers involved in a bidding war. “Many of the buyers who are using all cash this year are probably trying to beat out other offers in a situation with multiple offers,” noted Fairweather.

Redfin's [data](https://www.redfin.com/news/real-estate-bidding-wars-november-2020/) indicates that 54% of offers written by its agents faced at least one other offer, with even more competition for newly listed, ready-to-move-in condition homes.

“If you’re a buyer, you had better bring your best punch and expect competition. People are paying a premium for the latest and greatest, updated, remodeled, turnkey homes," said Justin Hess, a Redfin real estate agent in Denver, Colorado.

November marks the seventh straight month where over 50% of Redfin offers were involved in a bidding war. However, since reaching a peak of nearly 60% in August, the number of offers facing competition has cooled down. The slowdown is likely the result of a combination of not only cooling weather and the holiday season, but also the rise in COVID-19 infections, which have led to renewed lockdowns and restrictions in more vulnerable areas.

## Mortgage Term of the Week

*Understanding the lingo can be key to avoiding mistakes when you are buying a home or refinancing your mortgage. For more read: [Everything You Need to Know About Mortgage Rates in 2020](https://money.com/mortgage-rates/).*

**Foreclosure:** The legal process used by a lender to recover the amount owed on a defaulted loan. In mortgage lending, it can result in the lender taking over and selling the foreclosed property.

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