Mortgage rates from August 13, 2021: rate hike

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Deborah Jaffe / Getty

Several key mortgage rates have risen today. Average interest rates on fixed mortgages for 15 and 30 years have risen, while rates on 5/1 adjustable rate mortgages have also risen. Although mortgage interest rates always fluctuate, they are now lower than they have been in recent years. If you are looking for a mortgage, this may be the right time to lock in a low flat rate. Just remember to analyze your personal financial situation and always compare home loans from different lenders to find the one that suits you.

View mortgage rates that suit your specific needs

30 year fixed rate mortgage

The average 30-year fixed mortgage rate is 3.04%, up 8 basis points from seven days ago. (The base point is equivalent to 0.01%.) Fixed rate mortgage loans for 30 years are the most common loan term. A 30 year fixed rate mortgage will usually have a higher interest rate than a 15 year fixed rate mortgage, but will also have a lower monthly payment. 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 2.32%, up 7 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. 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 5/1 adjustable rate mortgage has an average rate of 3.06%, up 9 basis points from seven days ago. Typically, you get a lower interest rate (compared to a fixed 30 year mortgage) with a 5/1 adjustable rate mortgage for the first five years of the mortgage. But since the rate changes with the market rate, you may end up paying more after that time, as described in the terms of your loan. For this reason, an adjustable rate mortgage can be a good option if you plan to sell or refinance your home prior to the rate change. Otherwise, changes in the market can significantly increase your interest rate.

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 lenders by country:

Current average mortgage interest rates

Loan type Interest level A week ago Change
30 year flat rate 3.04% 2.96% +0.08
15 year flat rate 2.32% 2.25% +0.07
30 year giant mortgage rate 2.81% 2.80% +0.01
30 year mortgage refinancing rate 3.03% 2.94% +0.09

Updated August 13, 2021

How to find the best mortgage rates

When you’re ready to apply for a loan, you can contact your local mortgage broker or search online. To find the best home mortgage, you need to consider your goals and current finances. 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. Typically, you need a good credit rating, a higher down payment, a lower DTI, and a lower LTV in order to get a lower interest rate. In addition to the mortgage rate, other factors can also affect the value of your home, including closing costs, fees, discount points, and taxes. Be sure to talk to several lenders like local and national banks, credit unions and online lenders and compare them to find the best loan for you.

What is the best loan term?

One of the important factors to consider when choosing a mortgage is 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. The interest rates on fixed rate mortgages are the same throughout the life 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 is adjusted annually based on the market interest rate.

One factor to consider when choosing a fixed or variable rate mortgage is how long you plan to stay in your home. A fixed rate mortgage may be better for people who plan to live in a home for a long time. 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 can get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. The best loan term depends entirely on your specific situation and goals, so be sure to think about what is important to you when choosing a mortgage.

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