We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
A few key mortgage rates moved downward today. The averages for both 30-year fixed and 15-year fixed mortgages took a tumble. We also saw a downward trend in the average rate of 5/1 adjustable-rate mortgages (ARM).
The average mortgage rates are as follows:
- 30-year mortgage rate: 3.21%
- The average 15-year fixed-rate mortgage currently sits at 2.48%
- The average 5/1 adjustable mortgage currently sits at 3.07%
Current Mortgage Refinance Rates
There’s good news if you’ve been considering a refinance, because the average rates for 15-year fixed and 30-year fixed refinance loans sank. If you’ve been considering a 10-year refinance loan, just know average rates also sank.
The refinance averages for 30-year, 15-year, and 10-year loans are:
- 30-year fixed refinance rates are averaging: 3.30%
- 15-year refinance rate: 2.56%
- 10-year fixed refinance rate: 2.46%
30-Year Fixed-Rate Mortgages
The average 30-year fixed mortgage interest rate is 3.21%, which is a decrease of 6 basis points from the previous week.
You can use NextAdvisor’s home loan calculator to work out what your monthly payments would be and understand how adding extra payments will impact your loan. The mortgage calculator can also show you all of the interest you’ll pay over the life of the loan
15-Year Fixed-Rate Mortgages
The median rate for a 15-year fixed mortgage is 2.48%, which is a decrease of 3 basis points from the same time last week.
A 15-year, fixed-rate mortgage’s monthly payment is larger and will put more stress on your monthly budget than a 30-year mortgage would. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.
5/1 Adjustable-Rate Mortgages
A 5/1 ARM has an average rate of 3.07%, a downtick of 1 basis point compared to last week.
An adjustable-rate mortgage is ideal for households who will refinance or sell before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.
For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Just keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.
Recent Mortgage Rate Movement
To see where mortgage rates are going we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. Looking at the history of mortgage rates, we’re in the middle of a period of unprecedented low rates. This table has current average rates based on information provided to Bankrate by lenders from across the country:
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||3.21%||3.27%||-0.06|
|15-year fixed rate||2.48%||2.51%||-0.03|
|30-year jumbo mortgage rate||3.22%||3.29%||-0.07|
|30-year mortgage refinance rate||3.30%||3.34%||-0.04|
Updated on April 8, 2021.
There isn’t a single factor that causes mortgage rates to move, but rather there are many. Chief among them are things including inflation and even the unemployment rate. When you see inflation increasing, that usually means mortgage rates are about to climb higher. On the other hand, lower inflation typically accompanies lower mortgage rates. With higher inflation, the dollar becomes less valuable. This scenario pushes buyers away from mortgage-backed securities, which leads to price decreases and the need for increasing yields. And higher yields require borrowers to pay higher interest rates.
A strong economy has historically increased demand for homes. When more homes are sold, the demand for mortgages also increases, which can cause rates to go up. But the flip side is also true: A drop in demand for mortgages could signal a coming downturn in mortgage rates.
What Is in the Future for Mortgage Rates?
Recently, mortgage rates spiked and crossed 3% – a level we haven’t seen since July 2020. Even with this dramatic increase, rates are near or still below the levels many experts expected mortgage rates to be at in 2021.
What happens with rates will depend on the economy. And effectively dealing with the impacts of the coronavirus pandemic should boost our economic recovery. If spending increases, from the government and consumers, that’s likely to drive inflation higher. In this scenario, we’ll most likely see mortgage rates begin to climb upward. But in spite of the potential for rising inflation, mortgage rates are likely to stay low this year. One reason for this: the Federal Reserve believes that low interest rates will help the economy rebound. So it’s likely to make policy decisions in favor of keeping rates low.
This Month’s Mortgage Predictions
Some experts forecast that this month mortgage rates will stabilize following weeks of strong growth.
The Federal Reserve would still like to keep rates low to boost the economy. And some experts believe the fears of inflation that have been driving rates higher are a bit overblown. So even though mortgage interest rates are likely to continue to rise over the long term, a massive spike isn’t likely.
This Week’s Mortgage Predictions
A modest rise is what some experts are forecasting for mortgage rates this week. This would be a bit of a leveling off from previous weeks.
While there is nothing this week that should cause a spike or dramatic downturn in rates, the unexpected can happen. And currently, the economy still has a long way to go to return to its pre-pandemic level.
Factors Influencing Today’s Mortgage Rates
Everything from the broader economic outlook to your individual financial situation can affect mortgage rates. Not only that, but the type of mortgage and the property itself also make a difference.
Here are a few factors that influence rates:
- Overall strength of the economy
- Federal Reserve policies
- Spending in the private and public sectors
- U.S. Treasury bond Yields
- Inflation rates
- Individual circumstances: Loan-to-value ratio, credit history, and type of mortgage
How to Get the Best Mortgage Rate
Shopping around for a mortgage is one of the best ways to secure the lowest interest rate.
The mortgage rate you’ll qualify for depends on a number of factors lenders consider when assessing how the likelihood that you’ll be able to afford your monthly payments for the long term. Your credit score and debt-to-income ratio (DTI) impact your mortgage rate. And even the property’s value compared to your loan balance is important. So increasing your down payment can reduce your mortgage interest rate.
But lenders will look at your situation differently. So you can provide the same documentation to three different banks, and find that none of the mortgage rates and fees you are offered are the same.
How Rising Mortgage Rates Impact Home Buying
We started off 2021 with mortgage rates dipping to a record low of 2.65%. In the weeks since then, the average 30-year fixed rates have steadily marched all the way up 3.09%. While this rate growth isn’t unexpected, many experts believed it would be later 2021 before we saw rates rise to this level.
Rising rates can have a significant impact on your homebuying budget. The 0.44% increase we’ve experienced has increased the monthly payment on a 30-year $300,000 loan by $71 a month. But don’t expect current rates to cool off the red hot real estate market.
There is still a severe shortage of homes for sale. So as we enter peak buying season, expect to continue seeing homes sell quickly for above the asking price. Those trends can make it can be a frustrating market for buyers.
How We Got These Rates
The rates we have included are averages provided by Bankrate.com Site Averages and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.
National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.
Mortgage Interest Rates by Loan Type
Home Purchase Rates
- 30 Year Fixed Mortgage Rates
- 20 Year Fixed Mortgage Rates
- 15 Year Fixed Mortgage Rates
- 10 Year Fixed Mortgage Rates
- VA Mortgage Rates