Here are today’s mortgage rates as of June 29, 2021:

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Many important mortgage rates have dropped today. The average interest rates on both a 15-year fixed mortgage and a 30-year fixed mortgage have declined. The average rate of the most common type of floating rate mortgage, 5/1 adjustable rate mortgages, has also declined. Mortgage interest rates are never set in stone, but interest rates are the lowest in years. If you are planning to finance a home, this may be the right time to secure a flat rate. But, as always, remember to first consider your personal goals and circumstances before buying a home and find a lender who can best suit your needs.

Compare rates on national home loans from different lenders

30 year fixed rate mortgage

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.13%, which is 5 basis points lower than seven days ago. (The base point is equivalent to 0.01%.) A thirty-year fixed mortgage is the most commonly used loan term. 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 rate for a 15-year fixed mortgage is 2.43%, down 5 basis points from the same period last week. You will definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. 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 average ARM 5/1 rate is 3.14%, down 6 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. But you may end up paying more after that time, depending on the terms of your loan and how the rate changes depending on the market rate. For borrowers who plan to sell or refinance their home prior to the rate change, ARM may be a good option. 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 daily mortgage rate trends. This table shows the average rates offered by lenders by country:

Today’s mortgage interest rates

Credit term Today’s rate Last week Change
30 year mortgage rate 3.13% 3.18% -0.05
15 year flat rate 2.43% 2.48% -0.05
30 year giant mortgage rate 3.33% 3.20% +0.13
30 year mortgage refinancing rate 3.20% 3.25% -0.05

Rates are current as of June 29, 2021.

How to shop at the best mortgage rate

When you’re ready to apply for a loan, you can contact your local mortgage broker or search online. Be sure to take your current finances and your goals into account when looking for a mortgage. Specific mortgage interest rates will vary depending on factors including credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. A good credit rating, higher down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate is not the only factor that affects the value of your home – be sure to also consider additional factors such as fees, closing costs, taxes, and discounts. Talk to several lenders like local and national banks, credit unions and online lenders and compare them to find the best mortgage for you.

What is the best loan term?

When choosing a mortgage, you should consider 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 stable throughout the life of the loan. Unlike a fixed rate mortgage, interest rates on an adjustable rate mortgage are only the same for a certain period of time (usually five, seven, or 10 years). Thereafter, the rate changes annually depending on the market interest rate.

When choosing a fixed and adjustable rate mortgage, you should think about how long you plan to live in your home. For people who plan to live in a new home for a long time, 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 may offer lower interest rates up front. However, you can get a better adjustable rate mortgage deal if you only plan to keep your home for a couple of years. As a rule, there is no better loan term; it all depends on your goals and your current financial situation. Be sure to research and know what is most important to you when choosing a mortgage.

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