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Published: Feb 27, 2021 11 min read
Money

Mortgage rates trended higher throughout the past week, indicating that the days of ultra-low interest rates may be over for the time being. On Thursday, Freddie Mac released its benchmark primary mortgage survey which showed the 30-year fixed-rate mortgage increasing to the highest rate since last summer.

While the news of increasing rates may be concerning to some borrowers who were planning on buying a home or refinancing their mortgage this year, it shouldn't be. Rates are still very low historically speaking and well-qualified buyers will still be able to find low rates for the foreseeable future.

  • The average rate on a 30-year fixed-rate mortgage is 3.491% today.
  • The average rate on a 15-year fixed-rate mortgage is 2.588% today.
  • The average rate on a 5/1 jumbo ARM is 2.962% today.
  • The average rate on a 7/1 conforming ARM is 4.273% today.
  • The average rate on a 10/1 conforming ARM is 4.436% today.

Today's 30-year fixed mortgage rates

  • Today's 30-year rate is 3.491%.
  • That's a one-day increase of 0.077 percentage points.
  • That's a one-month increase of 0.438 percentage points.

Fixed-rate loans will have an interest rate that will remain consistent throughout the full term of the loan. The monthly payment will also remain constant. With a 30-year loan, you'll have fixed interest and payments for 360 months — or until you refinance or sell.

The interest rate on a 30-year loan is higher than on a shorter-term loan like a 15-year mortgage. Because you're paying the loan off over a longer period of time your monthly payment will be lower, however, you will pay more in overall interest than with a shorter-term loan. Because the monthly payments on 30-year loans are lower than with a 15-year mortgage, it is the most common type of loan.

Rates are subject to change. All information provided here is accurate as of the publish date.