The average rate for a 30-year fixed-rate mortgage, the most common type of loan for buying a home, is down once again today. The rate on a 30-year refi loan was also lower. All other types of loans saw mixed rates.
- The latest rate on a 30-year fixed-rate mortgage is 3.314%.
- The latest rate on a 15-year fixed-rate mortgage is 2.438%.
- The latest rate on a 5/1 jumbo ARM is 3.801%.
- The latest rate on a 7/1 conforming ARM is 4.046%.
- The latest rate on a 10/1 conforming ARM is 3.849%.
Current 30-year fixed mortgage rates
- The 30-year rate is 3.314%.
- That's a one-day decrease of 0.009 percentage points.
- That's a one-month decrease of 0.261 percentage points.
The most common mortgages on the market is a 30-year fixed-rate loan. The interest rate and monthly payment won't change for as long as you have the loan. It'll be paid off in 360 months unless you make extra payments, refinance or sell the home.
A 30-year loan will have a higher interest rate than a shorter-term loan like a 15-year. Your monthly payment, on the other hand, will be lower since you'll be making payments for twice as long. A downside, however, is that you'll pay more in total interest because you'll be paying a higher rate for a longer time.
For a lot of home loan borrowers, a 30-year loan is the go-to option because of the lower monthly payments.
Current 15-year fixed mortgage rates
- The 15-year rate is 2.438%.
- That's a one-day increase of 0.016 percentage points.
- That's a one-month decrease of 0.187 percentage points.
You can opt for a 15-year fixed-rate mortgage instead. Just like with a 30-year loan, the interest rate and monthly payment won't change for as long as you have the loan. You'll pay the mortgage off in 180 months unless you pay extra, refinance the loan or sell the home.
The rate on a 15-year loan will be lower than the rate on a 30-year loan, but the monthly payments will be higher. This is because you'll be making payments for half the time. The upside of a 15-year loan, however, is that you will pay less in overall interest because you'll be paying a lower rate for a shorter time.
A 15-year loan could be a good choice if you want to save on interest and can afford the higher monthly payments.
Current 5/1 jumbo adjustable-rate mortgage rates
- The 5/1 ARM rate is 3.801%.
- That's a one-day increase of 0.055 percentage points.
- That's a one-month increase of 0.857 percentage points.
You can also choose an adjustable-rate mortgage. An ARM will have a fixed interest rate and monthly payment for the first few years of the loan. Afterward, the rate will change on a yearly basis and the monthly payment will change in lockstep with the rate.
One of the more common adjustable-rate loans is a 5/1 ARM. With this type of loan, the interest rate will be fixed for the first five years and then change every year after. Other ARM terms include a 7/1 and a 10/1. ARMs will be paid off in 360 months unless you make extra payments, refinance or sell the home.
A 5/1 ARM will have one of the lowest interest rates on the market. The low initial rate can make it a good option if you only plan on staying in the home for five years or less. However, if you decide to keep the home for more than five years, keep in mind that the interest rate could increase at some point.
Today's VA, FHA and jumbo loan rates
The average rates for FHA, VA and jumbo loans are:
- The rate on a 30-year FHA mortgage is 3.058%.
- The rate on a 30-year VA mortgage is 3.113%.
- The rate on a 30-year jumbo mortgage is 3.605%.
Today's mortgage refinance rates
The average rates for 30-year loans, 15- year loans and 5/1 jumbo ARMs are:
- The refinance rate on a 30-year fixed-rate refinance is 3.637%.
- The refinance rate on a 15-year fixed-rate refinance is 2.653%.
- The refinance rate on a 5/1 jumbo ARM is 4.043%.
- The refinance rate on a 7/1 conforming ARM is 4.459%.
- The refinance rate on a 10/1 conforming ARM is 4.506%.
Where are mortgage rates heading this year?
Mortgage rates sunk through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they may not have been able to afford if rates were higher.
In January 2021, rates briefly dropped to the lowest levels on record, but trended higher through the month and into February.
Looking ahead, experts believe interest rates will rise more in 2021, but modestly. Factors that could influence rates include how quickly the COVID-19 vaccines are distributed and when lawmakers can agree on another economic relief package. More vaccinations and stimulus from the government could lead to improved economic conditions, which would boost rates.
While mortgage rates are likely to rise this year, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates should stay near historically low levels through the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a favorable time to finance a new home or refinance.
Factors that influence mortgage rates include:
- The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March of 2020. The Fed announced plans to keep money moving through the economy by dropping the short-term Federal Fund interest rate to between 0% and 0.25%, which is as low as they go. The central bank also pledged to buy mortgage-backed securities and treasuries, propping up the housing finance market. The Fed has reaffirmed its commitment to these policies for the foreseeable future multiple times, most recently at a late January policy meeting.
- The 10-year Treasury note. Mortgage rates move in lockstep with the yields on the government’s 10-year Treasury note. Yields dropped below 1% for the first time in March 2020 and have been slowly rising since then. Currently, yields have been hovering above 1% since the beginning of the year, pushing interest rates slightly higher. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
- The broader economy. Unemployment rates and change in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can push interest rates down. Thanks to the pandemic, unemployment levels reached all-time highs early last year and have not yet recovered. GDP also took a hit, and while it has bounced back somewhat, there is still a lot of room for improvement.
Tips for getting the lowest mortgage rate possible
There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a little bit of work and will depend on both personal financial factors and market conditions.
Check your credit score and credit report. Errors or other red flags that may be dragging your credit score down. Borrowers with the highest credit scores are the ones who will get the best rates, so checking your credit report before you start the house-hunting process is key. Taking steps to fix errors will help you raise your score. If you have high credit card balances, paying them down can also provide a quick boost.
Save up money for a sizeable down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender you have the money to finance the home purchase.
Shop around for the best rate. Don’t settle for the first interest rate that a lender offers you. Check with at least three different lenders to see who offers the lowest interest. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.
Also take time to find out about different loan types. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan like a 15-year loan or an adjustable-rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which one best fits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, the Department of Veterans Affairs and the Department of Agriculture — can be more affordable options for those who qualify.
Finally, lock in your rate. Locking your rate once you’ve found the right rate, loan product and lender will help guarantee your mortgage rate won’t increase before you close on the loan.
Our mortgage rate methodology
Money’s daily mortgage rates show the average rate offered by over 8,000 lenders across the United States the most recent business day rates are available for. Today, we are showing rates for Friday, April 23. Our rates reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. These rates were offered to people putting 20% down and include discount points.
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- How to Get the Lowest Mortgage Rate: A Step-by-Step Guide
- How to Get Preapproved for a Mortgage: A Step-by-Step Guide for Homebuyers
- Is Now a Good Time to Refinance My Mortgage? A Decision-Making Guide
- What Is an FHA Loan?
- You're Only Ready to Buy a House if You Can Answer 'Yes' to These 7 Questions
- Mortgage Rates Are on the Rise, and It's Messing With People's Home Buying Plans
Rates are subject to change. All information provided here is accurate as of the publish date.