Mortgage interest rates as of August 16, 2021: upward trend



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Rates on a number of significant mortgage loans have risen today. While fixed rates on mortgages for 15 years have not changed, interest rates on fixed mortgages for 30 years have been profitable. At the same time, average rates on mortgage loans with an adjustable interest rate of 5/1 increased. Although mortgage rates are constantly changing, they are lower than they have been in recent years. Because of this, now is the optimal time for potential home buyers to lock in a flat rate. But, as always, remember to think about your personal goals and circumstances first before buying a home, and consider finding a lender that best suits your needs.

Compare rates on national home loans from different lenders

30 year fixed rate mortgage

The average 30-year fixed interest rate on mortgages is 3.05%, up 2 basis points from 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 on a fixed mortgage for 15 years is 2.33%, which is in line with the level of a week ago. 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. But a 15 year loan will usually be a better deal if you can afford the monthly payments. 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 3.07%, which is 1 basis point more than seven days ago. For the first five years, you usually get a lower interest rate with a 5/1 adjustable rate mortgage compared to a 30 year fixed mortgage. However, changes in the market may cause your interest rate to rise after this time, as indicated in the terms of your loan. For this reason, ARM can be a good option if you plan to sell or refinance your home prior to the rate change. Otherwise, changes in the market mean that your interest rate could be much higher after adjusting it.

Dynamics of mortgage rates

We use data 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 US lenders:

Today’s mortgage interest rates

Credit term Today’s rate Last week Change
30 year mortgage rate 3.05% 3.03% +0.02
15 year flat rate 2.33% 2.33% N / C
30 year giant mortgage rate 2.80% 2.80% N / C
30 year mortgage refinancing rate 3.04% 3.04% N / C

Rates are as of August 16, 2021.

How to shop at the best mortgage rate

You can get a customized mortgage rate by contacting your local mortgage broker or using an online calculator. Be sure to take your current financial situation and your goals into account when looking for a mortgage. A number of factors, including your down payment, credit rating, loan-to-value ratio, and debt-to-income ratio, will affect your mortgage rate. 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. Apart from the mortgage rate, other costs can also affect the value of your home, including closing costs, fees, discounts, and taxes. Be sure to buy from multiple lenders such as credit unions and online lenders, in addition to local and national banks, to get the mortgage that works best for you.

How does the loan term affect my mortgage?

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 mortgages with a fixed interest rate, interest rates are stable throughout the life of the loan. Unlike a fixed rate mortgage, interest rates on an adjustable rate mortgage are set only for a specific period of time (most often five, seven, or 10 years). Thereafter, the rate fluctuates annually depending on the market interest rate. When choosing between a fixed rate mortgage or an adjustable rate mortgage, you must consider the length of time you live in the home. For those planning a long-term stay 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 could get a better adjustable rate mortgage deal if you only plan to keep your home for a few years. There is no best loan term as a basic rule; it all depends on your goals and your current financial situation. Be sure to research and know your own priorities when choosing a mortgage.


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