Here Are Today’s Mortgage Rates, February 19, 2021 | Rates Go Up

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.

The most principal mortgage rates all grew today. Both 30-year fixed and 15-year fixed mortgage rates inched upward. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) saw a decline.

Take a look at today’s rates:

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their average rates rise. If you’ve been considering a 10-year refinance loan, average rates also made gains.

Take a look at today’s refinance rates:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgages

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 2.99%, which is an increase of 16 basis points from seven days ago.

You can use NextAdvisor’s home loan calculator to work out what your monthly payments would be and calculate what you’ll save with additional payments. 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 2.39%, which is an increase of 5 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much sooner.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 2.94%, a downtick of 1 basis point compared to a week ago.

An ARM is ideal for households who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being noticeably 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 depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

How Mortgage Rates Have Changed

To see where mortgage rates are headed, 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 seeing low rates like never before. The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders from across the country:

Current average mortgage interest rates
Loan typeInterest rateA week agoChange
30-year fixed rate2.99%2.83%+0.16
15-year fixed rate2.39%2.34%-0.05
30-year jumbo mortgage rate3.03%2.86%+0.17
30-year mortgage refinance rate3.01%2.86%+0.15

Updated on February 19, 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.

The demand for housing can also impact mortgage rates. If more people are buying homes, there is a greater need for mortgages. This type of demand can drive interest rates up. And if there is less demand for mortgages, that can cause a decline in mortgage rates.

What’s in Store for Mortgage Rates in 2021

In recent months, mortgage rates fell to new all-time lows. Since there’s not much room for rates to decline further, many experts predict mortgage rates will remain flat or increase just slightly in 2021.

Where rates go is largely dependent on what happens with the economy. How effective we are in dealing with the impacts of the coronavirus pandemic is key to our economic recovery.
A stronger economy, along with increased spending from consumers and the government, is likely to drive inflation higher. In this scenario, we’ll most likely see mortgage rates begin to climb upward. Conversely, mortgage rates are likely to stay low if the coronavirus continues to cause economic hardship. The Federal Reserve could also choose to increase its purchasing of mortgage-backed securities, which could cause mortgage rates to drop.

Factors Influencing Today’s Mortgage Rates

Your mortgage rate depends on a number of things. First off, your personal finances have a big influence. Factors such as a higher credit score or making a bigger down payment will help you qualify for a better rate. However, not everything is in your control, many larger economic factors play a role as well:

  • Condition of the economy
  • Federal Reserve policy decisions
  • Government and consumer spending
  • 10-year U.S. Treasury yields
  • Rate of inflation
  • Individual circumstances: Loan-to-value ratio, credit history, and type of mortgage

How to Qualify for the Lowest Mortgage Rate

Getting loan offers from two or three lenders is one of the best ways to qualify for the lowest mortgage interest rate.

The mortgage rate you’ll qualify for depends on a variety of factors lenders consider when assessing how the likelihood that you’ll be able to make your mortgage payments for the long term. Your credit score and debt-to-income ratio (DTI) impact your mortgage rate. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your mortgage rate.

But, lenders will consider your circumstances differently. So you can provide the same documentation to three different banks, and receive mortgage offers with vastly different rates and fees.

Is Now a Good Time to Buy a Home?

Deciding when to buy a home is a highly personal choice. Your financial situation will play a big role in your decision. Before you buy a home, you’ll want to have a secure source of income, enough saved for closing costs, and a high credit score.

However, the pandemic has led to an even greater shortage of homes. That’s caused a bidding war and rising prices. Those trends mean 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 from day to 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

Mortgage Refinance Rates

More of Our Articles About Home Loans: