The average mortgage rate for a 30-year fixed-rate loan ended the week at 3.469%, down 0.122 percentage points from the start of the week. 30-year refinancing rates also ended the week lower, standing at 3.616%.

After approaching 3.6% on Monday – the highest rate since the end of March – mortgage rates fell during the week. It is still a good time for borrowers with good credit to apply for a new mortgage or refinance.

  • The latest rate on a 30 year fixed rate mortgage is 3.469%.
  • The last rate on a 15 year fixed rate mortgage is 2.567%.
  • The latest rate on a Jumbo ARM 5/1 is 2.315%.
  • The latest rate on a 7/1 compliant ARM is 3.416%.
  • The latest rate on a 10/1 compliant ARM is 3.596%.

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score – roughly the national average – could pay if they applied for a home loan right now. Daily rates are based on the average rate of 8,000 lenders offered to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower, as they measure the rates offered to borrowers with a higher credit rating.

Current mortgage rates: 30-year fixed rate mortgage rates

  • The 30-year rate is 3.469%.
  • It’s a day decrease by 0.011 percentage point. ??
  • It’s a month infold by 0.035 percentage point. ??

Most borrowers choose a 30-year fixed rate mortgage because the interest rate and monthly payment won’t change until you have the loan. The long payback period is also interesting because it means that the monthly payments will be relatively low. However, the interest rate will be higher than on shorter term loans, so you will pay more for a 30 year long term loan.

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Average mortgage rates

Data based on U.S. mortgages closed October 28, 2021

Type of loan October 28 Last week Switch
Conventional Fixed 15 Years 2.57% 2.58% 0.01%
Conventional Fixed 30 Years 3.47% 3.54% 0.07%
ARM rate 7/1 3.42% 3.07% 0.35%
ARM rate 10/1 3.6% 4.01% 0.41%

Your actual rate may vary

Current mortgage rates: 15 years fixed rate mortgage rates

  • The 15-year rate is 2.567%.
  • It’s a day infold by 0.007 percentage point. ??
  • It’s a month infold by 0.055 percentage point. ??

With lower interest rates and a shorter debt repayment term, a 15-year fixed-rate loan may be attractive to some borrowers, if they can handle higher monthly payments. The short term also means that the monthly payment will be higher than with a 30-year loan of the same amount, which may not be achievable for some borrowers.

Current mortgage rates: jumbo variable rate mortgage rates 5/1

  • The ARM 5/1 rate is 2.315%.
  • It’s a day decrease by 0.016 percentage point. ??
  • It’s a month offold by 0.05 percentage point. ??

Some borrowers prefer variable rate mortgages instead. These loans start with a low introductory or “teaser” rate. Once the fixed rate period ends, the interest rate will adjust to market conditions and reset at fixed intervals. The interest rate on an ARM 5/1, for example, will be fixed for five years and then reset every year. The risk with ARMs is that you could see a big increase in rates at some point.

Current mortgage rates: VA, FHA and jumbo loan rates

The average rates for FHA, VA and jumbo loans are:

  • The rate for a 30-year FHA mortgage is 3.237%. ??
  • The rate for a 30-year VA mortgage is 3.296%. ??
  • The rate for a 30-year jumbo mortgage is 3.636%. ??

Current mortgage refinancing rates

The average rates for 30-year, 15-year and 5/1 jumbo ARM loans are:

  • The refinance rate on a 30 year fixed rate refinance is 3.616%. ??
  • The refinance rate on a 15 year fixed rate refinance is 2.673%. ??
  • The refinancing rate on a Jumbo ARM 5/1 is 2.609%. ??
  • The refinancing rate on a 7/1 compliant ARM is 3.688%. ??
  • The refinancing rate on a 10/1 compliant ARM is 4.038%. ??
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Average mortgage refinancing rates

Data based on U.S. mortgages closed October 28, 2021

Type of loan October 28 Last week Switch
Conventional Fixed 15 Years 2.67% 2.69% 0.02%
Conventional Fixed 30 Years 3.62% 3.66% 0.04%
ARM rate 7/1 3.69% 3.89% 0.2%
ARM rate 10/1 4.04% 4.18% 0.14%

Your actual rate may vary

Where Are Mortgage Rates Going This Year?

Mortgage rates fell through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people have bought homes that they might not have been able to afford if the rates were higher.

In January 2021, rates briefly fell to all-time low levels, but tended to rise throughout the month and into February.

Looking ahead, experts believe interest rates will rise further in 2021, but modestly. Factors that could influence the rates include how quickly COVID-19 vaccines are distributed and when lawmakers can agree on another cost-effective relief package. More vaccinations and government stimulus could lead to improved economic conditions, which would increase rates.

Although mortgage rates are likely to rise this year, experts say the increase will not happen overnight and it will not be a dramatic jump. Rates are expected to stay near their historically low levels throughout the first half of the year, rising slightly later in the year. Even with rates rising, this will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced its intention to move money through the economy by lowering the Federal Fund’s short-term interest rate between 0% and 0.25%, which is as low as they go. The central bank has also committed to buying mortgage-backed securities and treasury bills, thereby supporting the housing finance market. The Fed has reaffirmed its commitment to these policies for the foreseeable future on several occasions, most recently at a policy meeting in late January.
  • The 10-year Treasury note. Mortgage rates move at the same pace as the yields on 10-year government treasury bills. Yields fell below 1% for the first time in March 2020 and have slowly risen since then. Currently, yields have hovered above 1% year-to-date, pushing interest rates up slightly. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The economy in the broad sense. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels hit historic highs early last year and have yet to recover. GDP has also been affected, and although it has rebounded somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. The borrowers with the highest credit scores will get the best rates, so it’s essential to check your credit report before you begin the home search process. Taking action to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually results in a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the house.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who is offering the lowest interest rate. Also consider the different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

Also. take the time to learn about the different types of loans. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a conventional 30-year mortgage. Compare everyone’s costs to see which one best suits your needs and your financial situation. Government loans – such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you’ve found the right rate, the right loan product, and the lender will help ensure that your mortgage rate doesn’t increase until the loan closes.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for which the most recent rates are available. Today, we are posting the rates for Thursday, October 28, 2021. Our rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people contributing 20% ​​and include discount points.

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