Mortgage interest rates as of June 30, 2021: rate cut



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Several major mortgage rates have dropped today. Average rates on fixed mortgages for 15 and 30 years declined, while average rates on mortgages with an adjustable rate of 5/1 also fell. Mortgage rates fluctuate, but they are now lower than they have been in recent years. If you are looking to buy a new home, this may be the right time to get a low fixed rate mortgage loan. Just remember to look through your finances and look for the best mortgage for yourself.

View mortgage rates that suit your specific needs

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 less than 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. You won’t be able to pay off your home that quickly, and you will pay more interest over time, but a fixed mortgage for 30 years is a good option if you want to minimize your monthly payment.

Mortgage with a fixed interest rate for 15 years

The average rate on a 15-year fixed mortgage is 2.43%, down 5 basis points from a week ago. Compared to a fixed mortgage for 30 years, a fixed mortgage for 15 years with the same loan amount and interest rate will have a higher monthly payment. But a 15 year loan will usually be a better deal if you can afford the monthly payments. These typically include the ability to get a lower interest rate, pay off your mortgage faster, and pay less interest in the long run.

5/1 Adjustable Rate Mortgage

ARM 5/1 has an average of 3.13%, down 6 basis points from a week 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. But changes in the market can lead to an increase in your interest rate after this time, as indicated in the terms of your loan. For borrowers who plan to sell or refinance their home prior to the rate change, an adjustable rate mortgage can 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 rate changes over time. 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 3.13% 3.18% -0.05
15 year flat rate 2.43% 2.48% -0.05
30 year giant mortgage rate 3.33% 3.02% +0.31
30 year mortgage refinancing rate 3.20% 3.25% -0.05

Rates are quoted as of June 30, 2021.

How to shop at the best mortgage rate

You can get a customized mortgage rate by contacting your local mortgage broker or by using an online calculator. Be sure to take your current finances and your goals into account when looking for a mortgage. The following factors affect the rate of interest you can get on a mortgage: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. A higher credit rating, higher down payment, lower DTI, lower LTV, or any combination of these factors can help you get a lower interest rate. Aside from the mortgage interest rate, additional costs can also affect the value of your home, including closing costs, fees, discount points, and taxes. Make sure you speak with several lenders, such as local and national banks, credit unions, and online lenders, and compare them to find the best mortgage 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 common mortgage terms are 15 and 30 years, although mortgages also exist for 10, 20 and 40 years. Mortgages are classified into fixed rate and adjustable rate mortgages. For fixed rate mortgages, interest rates are fixed for the entire life of the loan. For adjustable rate mortgages, interest rates are set for a specific number of years (usually five, seven, or 10 years), then the rate changes annually depending on the market interest 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 if you plan on staying in the home for a while. While adjustable rate mortgages can sometimes offer lower interest rates up front, fixed rate mortgages are more stable in the long run. 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. There is no best loan term as a basic rule; it all depends on your goals and your current financial situation. It is important to do your research and know what is most important to you when choosing a mortgage.


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