Mortgage rates as of July 2, 2021: rates are falling

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Several major mortgage rates have dropped today. Both 15-year fixed and 30-year fixed mortgage rates fell. At the same time, the average rates on mortgage loans with an adjustable interest rate of 5/1 also decreased. Mortgage interest rates are never set in stone, but interest rates have historically been low. For those looking to lock in a flat rate, now is a good time to finance a home. But, as always, be sure to consider your personal goals and circumstances first before buying a home and look for a lender that best suits your needs.

Check out mortgage rates that suit your specific needs

30 year fixed rate mortgage

The average 30-year fixed interest rate on mortgages is 3.08%, down 5 basis points from a week ago. (The base point is equivalent to 0.01%.) The most common 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 rate for a 15-year fixed mortgage is 2.39%, down 5 basis points from the same time last week. 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. 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 3.08%, down 6 basis points from the same time last week. With an ARM mortgage, you usually get a lower interest rate than a 30 year fixed mortgage for the first five years. 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 information 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 3.08% 3.13% -0.05
15 year flat rate 2.39% 2.44% -0.05
30 year giant mortgage rate 3.33% 3.33% N / C
30 year mortgage refinancing rate 3.15% 3.21% -0.06

Rates are valid as of July 2, 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. To find the best mortgage for your home, you need to consider your goals and overall financial situation. Specific 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 influences the value of your home – be sure to consider other costs as well, such as fees, closing costs, taxes, and discounts. You should compare the store with several lenders, including credit unions and online lenders, as well as local and national banks, to get the mortgage that suits you.

What is the best loan term?

When choosing a mortgage, it is important to consider the loan term or payment schedule. The most commonly offered mortgages are 15 and 30 years, although you can also find mortgages for 10, 20 and 40 years. Mortgages are classified into fixed rate 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 set 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 fixed or adjustable rate mortgage, you should consider how long you plan to stay in your home. If you are planning to stay in your 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 can sometimes offer lower interest rates up front. However, if you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage can give you a better deal. The best loan term depends entirely on your situation and goals, so be sure to think about what is important to you when choosing a mortgage.

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