Here are the mortgage rates as of August 4, 2021: Rate Slide



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Several major mortgage rates have dropped today. Average rates on fixed rate mortgages for 15 and 30 years declined, while average rates on 5/1 adjustable rate mortgages also fell. Mortgage rates always fluctuate, but they are now lower than they have been in recent years. If you want to lock in a low flat rate, this might be the right time. As always, it’s important to analyze your personal goals and financial circumstances before buying a home – and be sure to look with several lenders to find the mortgage that’s right for you.

View mortgage rates that suit your specific needs

30 year fixed rate mortgage

The average 30-year fixed interest rate on mortgages is 2.96%, down 7 basis points from seven days 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 higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking for minimum monthly payments.

Mortgage with a fixed interest rate for 15 years

The average rate on a fixed mortgage for 15 years is 2.26%, which is 5 basis points less than 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

ARM 5/1 has an average of 2.97%, down 8 basis points from the same time last week. You usually get a lower interest rate (compared to a 30 year fixed mortgage) with an ARM 5/1 for the first five years of the mortgage. However, since the rate changes with the market rate, you may end up paying more after that time, as described in your loan terms. For this reason, ARM can be a good option if you plan to sell or refinance your home prior to the rate change. Otherwise, market fluctuations can significantly increase your interest rate.

Dynamics of mortgage rates

We use data collected by Bankrate, owned by the same parent company as CNET, to track rate changes over time. This table shows the average rates offered by lenders by country:

Current average mortgage interest rates

Loan type Interest level A week ago Change
30 year flat rate 2.96% 3.03% -0.07
15 year flat rate 2.26% 2.31% -0.05
30 year giant mortgage rate 2.80% 2.78% +0.02
30 year mortgage refinancing rate 2.94% 3.00% -0.06

Updated August 4, 2021.

How to find the best mortgage rates

For a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. To find the best home mortgage, you need to consider your goals and current finances. A number of factors, including your down payment, credit rating, loan-to-value ratio, and debt-to-income ratio, will influence your mortgage rate. Typically, you need a higher credit rating, a higher down payment, a lower DTI, and a lower LTV in order to get a lower interest rate. In addition to the mortgage interest rate, the cost can also be influenced by factors including closing costs, fees, discount points, and taxes. You should talk to several different lenders – like local and national banks, credit unions and online lenders – and a comparison store to find the best mortgage for you.

What is the best loan term?

When choosing a mortgage, it is important to keep in mind the loan term or payment schedule. The most common loan terms are 15 and 30 years, although mortgages also exist for 10, 20 and 40 years. Another important difference is between fixed and adjustable rate mortgages. Interest rates on fixed rate mortgages are set for the duration of the loan. For adjustable rate mortgages, interest rates are stable for a certain number of years (usually five, seven, or 10 years), then the rate is adjusted annually based on the market rate.

When choosing a fixed or adjustable rate mortgage, you should consider how long you plan to live in your home. A fixed rate mortgage may be better for those planning to live in a home for a long time. While adjustable rate mortgages may offer lower interest rates up front, fixed rate mortgages are more stable over the long term. However, if you are not planning to keep your new home for more than three to ten years, an adjustable rate mortgage may be the best option. The best loan term always depends on your specific situation and goals, so be sure to consider what is important to you when choosing a mortgage.


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