Mortgage rates as of June 17, 2021: rates increase

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Several major mortgage rates are up slightly today. Average rates on fixed rate mortgages for 15 and 30 years have increased slightly. The average rate on a 5/1 adjustable rate mortgage – the most common adjustable rate mortgage – has also risen. Although mortgage rates are constantly changing, they are now at an all-time low. If you are looking for a mortgage, now is the time to lock in a low flat rate home loan. Be sure to review and compare mortgage loan types and rates from different lenders to find the best home loan for you.

Here are the mortgage rates for different types of loans

30 year fixed rate mortgage

The average interest rate on a standard 30-year fixed mortgage is 3.16%, up 8 basis points from a week 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 often has 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 15-year fixed mortgage is 2.42%, up 6 basis points from 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

The average rate on a 5/1 adjustable rate mortgage is 3.19%, up 10 basis points from the same period last week. For the first five years, you usually get a lower interest rate with 5/1 ARM 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 much 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 changes in these daily rates. This table shows the average rates offered by lenders by country:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30 year flat rate 3.16% 3.08% +0.08
15 year flat rate 2.42% 2.36% +0.06
30 year giant mortgage rate 3.20% 3.24% -0.04
30 year mortgage refinancing rate 3.22% 3.14% +0.08

Updated June 17, 2021

How to find customized mortgage rates

When you’re ready to apply for a loan, you can contact your local mortgage broker or search online. Be sure to consider your current finances and your goals when looking for a mortgage. Specific mortgage rates will vary depending on factors including credit rating, down payment, debt-to-income ratio, and loan-to-value 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. 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. Be sure to buy from multiple lenders – including credit unions and online lenders as well as local and national banks – to get the loan that’s right for you.

What is a good loan term?

When choosing a mortgage, one important point should be considered – the term of the loan or the payment schedule. The most common mortgage terms are 15 years 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 changes annually depending on the market rate.

When choosing a fixed or adjustable rate mortgage, you should consider how long you plan to live in your home. Fixed rate mortgages may be more suitable for people who plan to stay in the home for a while. A fixed rate mortgage offers greater 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 deal with an adjustable rate mortgage if you intend to keep your home for only a few years. The optimal loan term depends entirely on your personal situation and goals, so be sure to take into account what is important to you when choosing a mortgage.

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