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Published: Feb 06, 2021 10 min read
Money; Getty Images

The average rate for a 30-year fixed rate mortgage hovered around 3.1% for most of the week, climbing to a peak on Friday. Rates across all types of home loans ended the week on an upward trend. Still, rates remain close to historic lows.

  • Today's rate on a 30-year fixed-rate mortgage is 3.13%
  • Today's rate on a 15-year fixed-rate mortgage is 2.337%
  • Today's rate on a 5/1 jumbo ARM is 2.846%

30-year fixed mortgage rates TODAY

  • Today’s average is 3.13%, up 0.77 percentage points from last week.

Most home loan borrowers opt for a 30-year fixed-rate mortgage, accounting for 75% of all new mortgages. With this kind of mortgage, you’ll pay a fixed monthly amount throughout the length of the loan (or until you sell or refinance). Your interest rate will also be the same for the full term of the loan.

You'll pay a higher interest rate on a 30-year mortgage than a 15-year fixed-rate mortgage, but your monthly payments will be lower, as you’re spreading the debt over a longer period of time. However, you will pay more in interest over the life of the loan.

15-year fixed mortgage rate today

  • Today’s average is 2.337%, up 0.029 percentage points from last week.

A 15-year mortgage can be a way to save on the total amount of interest paid over the life of the loan, since they involve fewer total payments and tend to have lower interest rates than longer loans. However, because payments are spread over a shorter period of time, your monthly mortgage payments will be higher than with a 30-year loan.

Because this is a fixed-rate mortgage, your interest rate and monthly payment amounts won’t change over the life of the loan.

5/1 jumbo adjustable-rate mortgage rates today

  • Today’s average is 2.846%, up 0.035 percentage points from last week

Adjustable-rate mortgages are popular with some buyers because they can offer low initial interest rate. However, today, some borrowers may fine lower rates on a the 30-year fixed-rate mortgage. As a result, ARM's may become less attractive.

With a 5/1 ARM, your interest rate will be fixed for the first five years of the loan, then reset every year after that. As a result, your mortgage payments will be the same during the first five years of the loan, but may change every year afterward. In addition to a five-year fixed term, ARM's can also be found with 7-year and 10-year initial fixed terms.

VA, FHA, and jumbo loan rates today

The average rates for FHA, VA and jumbo loans are:

  • Today’s rate on a 30-year FHA mortgage is 2.965%.
  • Today’s rate on a 30-year VA mortgage is 3.046%.
  • Today’s rate on a 30-year jumbo mortgage is 3.579%.

Mortgage refinance rates today

The average rates for 30-year loans, 15- year loans and 5/1 jumbo ARMs are:

  • Today’s rate on a 30-year fixed-rate refinance is 3.48%.
  • Today’s rate on a 15-year fixed rate refinance is 2.591%.
  • Today’s rate on a 5/1 jumbo ARM is 3.239%.

Where are mortgage rates heading?

The economic stress caused by the COVID-19 pandemic led to interest rates setting 16 new all-time lows in 2020. To start 2021, rates dropped to 2.65% the current record. (This is according to Freddie Mac, which tracks weekly rates for the most qualified borrowers.)

As a result, millions of homeowners have taken the opportunity to refinance their existing mortgages and save on their monthly payments. Lower interest rates also made it easier for many buyers to afford more expensive homes. Lately the trend has been for larger, more spacious homes away from urban centers.

Looking ahead, experts believe interest rates will rise in 2021, but modestly. Factors that could influence rates include how quickly the COVID-19 vaccines are distributed and quickly Congress and Biden administration can agree on an economic package. More vaccinations and stimulus form the government which could all lead to improved economic conditions and boost rates.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates should stay at 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 good time to finance a new home.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Federal Reserve took swift action when the pandemic first hit the United States in March of 2020. The Fed announced plans to maintain liquidity by dropping the short-term Federal Fund interest rate to between 0% and 0.25%. The central bank also pledged to buy mortgage-backed securities and treasuries. As recently as late January, the has reaffirmed its commitment to these policies for the foreseeable future.
  • 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, 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 levels and gross domestic product are important indicators of the overall health of the economy. When unemployment and GDP 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 borrower 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 for 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, or 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 previous business day. 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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Rates are subject to change. All information provided here is accurate as of the publish date.