Current mortgage interest rates as of June 1, 2021: rates are increasing



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A number of significant mortgage rates have risen slowly today. Average interest rates on both a 15-year fixed-rate mortgage and a 30-year fixed rate mortgage have increased. We also observed an upward trend in the average rate on mortgage loans with an adjustable interest rate of 5/1. Although mortgage rates are constantly changing, they are now quite low. For those looking to lock in a flat rate, now is the perfect time to finance a home. But, as always, remember to take your personal goals and circumstances into account first before buying a home and shop around to find a lender who can best suit your needs.

Find out current mortgage rates for today

30 year fixed rate mortgage

The average interest rate for a standard 30-year fixed mortgage is 3.10%, up 1 basis point from a week ago. (The base point is equivalent to 0.01%.) The most commonly used loan term is a fixed mortgage for 30 years. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year, but usually a higher interest rate. Although you will pay more interest over time – you pay off the loan over a longer period – if you are looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

Mortgage with a fixed interest rate for 15 years

The average 15-year fixed-term mortgage rate is 2.38%, up 1 basis point from seven days ago. Compared to a 30 year fixed mortgage, a 15 year fixed mortgage with the same loan amount and interest rate will have a higher monthly payment. However, if you can afford the monthly payments, there are several advantages to a 15 year loan. You usually get a lower interest rate and you will pay less interest overall because you pay off your mortgage much faster.

5/1 Adjustable Rate Mortgage

The 5/1 adjustable rate mortgage has an average rate of 3.12%, up 2 basis points from a week ago. With an adjustable rate mortgage, you usually get a lower interest rate than a 30 year fixed mortgage for the first five years. However, after this time, you may pay more, depending on the terms of your loan and how the rate adjusts to the market rate. For this reason, an adjustable rate mortgage can be a good option if you plan to sell or refinance your home prior to the rate change. But if this is not the case, you could be on the hook for a significantly higher interest rate if market rates change.

Dynamics of mortgage rates

We use rates collected by Bankrate, owned by the same parent company as CNET, to track changes in these daily rates. This table shows the average rates offered by lenders by country:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30 year flat rate 3.10% 3.09% +0.01
15 year flat rate 2.38% 2.37% +0.01
30 year giant mortgage rate 3.15% 3.14% +0.01
30 year mortgage refinancing rate 3.14% 3.13% +0.01

Updated June 1, 2021

How to find customized mortgage rates

For a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. Be sure to think about your current financial situation and your goals when looking for a mortgage. The following factors affect the interest rate you can get on a mortgage: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Typically, you need a higher credit rating, a larger down payment, a lower DTI, and a lower LTV in order to get a lower interest rate. The interest rate is not the only factor that affects the value of your home. Be sure to consider additional factors such as fees, closing costs, taxes, and discounts. Be sure to compare purchases with multiple lenders, including credit unions and online lenders, as well as local and national banks, to get the mortgage that works best for you.

What is a good loan term?

When choosing a mortgage, it is important to consider the loan term or payment schedule. The most commonly offered loan terms are 15 and 30 years, although you can also find mortgages for 10, 20 and 40 years. Another important difference is between fixed and adjustable rate mortgages. For fixed rate mortgages, interest rates are set for the entire life of the loan. For adjustable rate mortgages, interest rates are fixed for a specific number of years (usually five, seven, or 10 years), then the rate fluctuates annually depending on the current interest rate in the market.

When choosing a mortgage with a fixed or an adjustable rate, you should think about how long you plan to stay in your home. If you are planning a long term living in a new home, a fixed rate mortgage may be the best option. A fixed rate mortgage provides more stability over time compared to an adjustable rate mortgage, but an adjustable rate mortgage can sometimes offer lower interest rates up front. However, you can get a better deal with an adjustable rate mortgage if you only plan to keep your home for a couple of years. The best loan term depends on the person’s situation and goals, so be sure to think about what is important to you when choosing a mortgage.


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