Several key mortgage rates declined today. The average rates on 30-year fixed and 15-year fixed mortgages both declined. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also ticked downward.
Mortgage rates are in a constant state of flux, but they remain low by historical standards. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just don’t do so without shopping around first.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.83 percent, down 17 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.07 percent.
At the current average rate, you’ll pay $467.67 per month in principal and interest for every $100,000 you borrow. That’s lower by $9.75 than it would have been last week.
You can use Bankrate’s mortgage calculator to figure out your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 3.06 percent, down 8 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $693 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
The average rate on a 5/1 ARM is 3.12 percent, down 3 basis points since the same time last week.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.12 percent would cost about $428 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.