Mortgage Interest Rates Today, February 23, 2021 | Rates Moved up

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A number of important mortgage rates all moved up today. Both 30-year fixed and 15-year fixed mortgage rates inched up. We also saw an increase in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

Looking at Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates go higher. Shorter term 10-year fixed-rate refinance mortgages also inched up.

The refinance averages for 30-year, 15-year, and 10-year loans are:

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 3.09%, which is a growth of 21 basis points from the previous week.

You can use NextAdvisor’s mortgage 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 the total 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 2.47%, which is an increase of 10 basis points compared to a week 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 earlier.

5/1 Adjustable-Rate Mortgages

A 5/1 ARM has an average rate of 2.97%, a climb of 3 basis points from seven days 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 remarkably 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 rate could climb higher and your payment might grow by hundreds of dollars a month.

How Mortgage Rates Have Changed

To see where mortgage rates are moving 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. This table has current average rates based on information provided to Bankrate by lenders from across the nation:

Today’s mortgage interest rates
Loan termToday’s RateLast weekChange
30-year mortgage rate3.09%2.88%+0.21
15-year fixed rate2.47%2.37%-0.10
30-year jumbo mortgage rate3.13%2.91%+0.22
30-year mortgage refinance rate3.13%2.92%+0.21

Rates accurate as of February 23, 2021.

A number of factors can influence mortgage rates, including everything from inflation to unemployment. In general, inflation leads to higher interest rates and vice versa. The dollar loses value with increased inflation, and this causes mortgage-backed securities to become less enticing for investors, which leads to falling prices and higher yields. And if yields increase, interest rates become more expensive for borrowers.

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, we’ve seen mortgage interest rates linger near all-time lows. And for 2021, some experts predict mortgage rates will stay that way. Although, toward the end of the year we could see rates start to gradually rise.

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.
As the economy recovers, we should see inflation rise, which will put upward pressure on mortgage rates. However, if the economic recovery is slower than expected and the pandemic drags on, it’s likely we’ll see low rates for the foreseeable future. And the Federal Reserve could also act to limit the increase of mortgage rates if it feels the economy cannot support them

What Impacts the Current 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 having the ability to make a larger down payment will help you get the best rate. However, not everything is in your control, many larger economic factors play a role as well:

  • Overall strength of the economy
  • Federal Reserve policy decisions
  • Consumer and government spending
  • Yields for 10-year Treasury bonds
  • Inflation rates
  • Personal financial situation: Size of your down payment, credit history, and debt-to-income ratio

How to Get the Best Mortgage Rate

Comparing home loan offers is a great way to qualify for the lowest mortgage rate.

The mortgage rate you get depends on a number 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) factor into the decision. And your loan-to-value (LTV) ratio is also important, so having a bigger down payment is better for your interest rate.

But, lenders will evaluate your situation differently. So you can give the same documentation to three different lenders, 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 exacerbated a shortage of homes, leading to bidding wars 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

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