Several benchmark mortgage rates fell today. The average 30-year fixed and 15-year mortgage rates have both declined. As for variable mortgages, the average rate for 5/1 adjustable rate mortgages remained stable.

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Mortgage rates are constantly changing, but overall they are still much lower than they were before the Great Recession. If you are looking for a mortgage, it may be a good idea to go ahead and lock in if you see a rate you like. Just be sure to shop first.

Find the right mortgage rate for your specific criteria.

30 year fixed rate mortgages

The average rate for a 30-year fixed mortgage is 3.04%, down 2 basis points over the past seven days. A month ago, the average rate on a 30-year fixed-rate mortgage was higher, at 3.06%.

At the current average rate, you’ll pay $ 423.76 per month in principal and interest for every $ 100,000 you borrow. That’s $ 1.09 less than last week.

You can use Bankrate’s mortgage rate calculator to calculate your monthly payments and find out how much you will save by adding additional payments. It will also help you determine how much interest you will pay over the life of the loan.

15 year fixed rate mortgages

The 15-year average fixed mortgage rate is 2.54%, down 2 basis points from last week.

Monthly payments on a 15-year fixed rate mortgage at this rate will cost approximately $ 669 per $ 100,000 borrowed. This is clearly much higher than the monthly payment on a 30-year mortgage at this rate, but it has big advantages: you’ll save thousands of dollars over the life of the loan in total interest paid and build up capital. much faster. .

5/1 arm

The average rate on a 5/1 ARM is 3.33%, unchanged over the past 7 days.

These types of loans are best suited for people who plan to refinance or sell before the first or second adjustment. The rates could be considerably higher when the loan is first adjusted, and afterwards.

Monthly payments on a 3.33% 5/1 ARM would cost around $ 440 for every $ 100,000 borrowed in the first five years, but could increase by several hundred dollars afterwards, depending on loan terms.

Where are the rates going

To see where Bankrate’s expert panel expects rates to move from here, check out our mortgage interest rate forecast.

Want to see where the rates are right now? Lenders nationwide respond to Bankrate’s weekday mortgage rate survey to give you the most recent rates available. Here you can see the latest mid-market rates for a wide variety of purchase loans:

Prices as of September 16, 2020.

Lock in your mortgage rate now or wait?

A rate foreclosure guarantees your interest rate for a specified period. Lenders often offer 30-day rate locks for a small fee or incorporate the price of the lock into your loan. Some lenders will lock in rates for longer periods, even exceeding 60 days, but these locks can be costly. In today’s volatile market, some lenders will lock in an interest rate for only two weeks to avoid unnecessary risk.

The advantage of a rate foreclosure is that if interest rates rise, you are stuck on the guaranteed rate. Some lenders have a variable rate foreclosure option, which allows you to get a lower rate if interest rates drop before your loan closes. In a declining rate environment, a floating foreclosure could be worth the cost. Since mortgage rates are unpredictable, there is no guarantee that rates will stay where they are week to week or even day to day. So if you can lock in a low rate, you should rather than bet on even lower interest rates.

Remember: During the pandemic, all aspects of real estate and mortgage fencing are taking much longer than usual. Expect a new mortgage to take at least 60 days to close, and refinance to take at least a month.

Why do mortgage rates go up and down?

Mortgage rates are influenced by a range of economic factors, from inflation to unemployment figures. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn discourages investors for mortgage-backed securities, causing prices to fall and yields to rise. When yields go up, rates become more expensive for borrowers.

A strong economy usually means more people are buying homes, which in turn drives demand for mortgages. This increased demand can drive up rates. The reverse is also true; lower demand can trigger lower rates.

What are the current mortgage rates?

the current mortgage rate environment has been unstable due to the coronavirus pandemic, but rates have generally been low. Mortgage rates go up and down week to week, with lenders inundated with forbearance and refinancing requests. In general, however, rates are consistently below 4 percent and even dip into the mid to low 3s. This is a particularly good time for people with good to excellent credit to get a low rate on a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to mitigate their risk.

Methodology: The rates you see above are the averages from the Bankrate.com site. These calculations are made after the close of the previous business day and include the rates and / or returns that we have collected on that day for a specific banking product. Bankrate.com site averages tend to be volatile – they help consumers see day-to-day rate movements. The institutions included in the “Bankrate.com Site Average” tables will be different from day to day, depending on the institution rates we collect on a particular day for presentation on the site.

To learn more about the different rate averages published by Bankrate, see “Understanding Bankrate Rate Averages”.

Learn more about the other loan conditions:

• Current mortgage refinancing rates
• Current interest rates at 30 years

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