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Published: Nov 24, 2021 10 min read
Money; Getty Images

The average rate for a 30-year fixed-rate mortgage is 3.65%, an increase of 0.103 percentage points from yesterday. Rates were higher across all loan types, with the rate for a 30-year refinance loan increasing to 3.796%.

Although rates have moved higher over the past two days, they remain near historic lows. Well-qualified borrowers planning on buying a home or refinancing their current home loan should be able to lock in competitive rates and comfortable monthly payments.

  • The latest rate on a 30-year fixed-rate mortgage is 3.65%. ⇑
  • The latest rate on a 15-year fixed-rate mortgage is 2.684%. ⇑
  • The latest rate on a 5/1 ARM is 2.312%. ⇑
  • The latest rate on a 7/1 ARM is 3.127%. ⇑
  • The latest rate on a 10/1 ARM is 3.684%. ⇑

Money's daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score — roughly the national average score — might pay if he or she applied for a home loan right now. Each day's rates are based on the average rate 8,000 lenders offered to applicants the previous business day. Freddie Mac's weekly rates will generally be lower, since they measure rates offered to borrowers with higher credit scores.

30-year fixed-rate mortgage rates today

  • The 30-year rate is 3.65%.
  • That's a one-day increase of 0.103 percentage points.
  • That's a one-month increase of 0.118 percentage points.

Most mortgage borrowers opt for a 30-year fixed-rate mortgage because of three factors: the interest rate will always be predictable, the monthly payment will never change and the long payback time results in lower and more affordable payments. The drawback is that the interest rate will be higher compared to a short-term loan, so the 30-year loan will actually be more expensive over time.

15-year fixed-rate mortgage rates today

  • The 15-year rate is 2.684%.
  • That's a one-day increase of 0.047 percentage points.
  • That's a one-month increase of 0.106 percentage points.

Those who opt for a 15-year fixed-rate loan are usually drawn by its lower interest rate, compared to a long-term loan, and the ability to pay the loan off in half the time. The downside is that the shorter term results in higher monthly payments compared to an equivalent 30-year mortgage, which may not be practical for some borrowers.

Adjustable-rate mortgage rates today

  • The latest rate on a 5/1 ARM is 2.312%. ⇑
  • The latest rate on a 7/1 ARM is 3.127%. ⇑
  • The latest rate on a 10/1 ARM is 3.684%. ⇑

Some borrowers choose an adjustable-rate mortgage because the interest rate starts out low and is fixed for the first few years of the loan. Eventually, however, the rate will become adjustable, reacting to market conditions and resetting periodically. The interest rate on a 5/1 ARM, for instance, will be fixed for five years and then reset annually. This type of loan could be a good option if you don't plan on staying in the home long-term. Once the rate starts to adjust there can be a significant increase, which will push the monthly payments higher.

Current mortgage rates: 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 3.428%. ⇑
  • The rate on a 30-year VA mortgage is 3.487%. ⇑
  • The rate on a 30-year jumbo mortgage is 3.726%. ⇑

Current mortgage refinance rates

The average refinance rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed-rate refinance is 3.796%. ⇑
  • The refinance rate on a 15-year fixed-rate refinance is 2.801%. ⇑
  • The refinance rate on a 5/1 ARM is 2.607%. ⇑
  • The refinance rate on a 7/1 ARM is 3.475%. ⇑
  • The refinance rate on a 10/1 ARM is 4.1%. ⇑

Where are mortgage rates heading this year?

Mortgage rates sank 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 a mortgage.

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 but began cutting back those purchases in November.
  • 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 rising since then.On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The broader economy. Unemployment rates and changes 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 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 Tuesday, November 23, 2021. 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.