Mortgage rates July 16, 2021: Lower rates


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Rates on a number of major mortgage loans have dropped today. While 15-year fixed rates on mortgages rose, interest rates on 30-year fixed rates fell. We also saw a decline in the average rate on 5/1 adjustable rate mortgages. Although mortgage rates are dynamic, they are now quite low. If you are planning to finance a home, this may be the best time to lock in a flat rate. Before buying a home, be sure to consider your personal needs and financial situation and talk to various lenders to find the best option for you.

Check out 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 3.04%, which is 2 basis points less than seven days 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 higher interest rate than a 15 year fixed rate mortgage, but also has a lower monthly payment. 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 15-year fixed-term mortgage rate is 2.38%, up 1 basis point from seven days 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. 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

The 5/1 adjustable rate mortgage has an average rate of 3.04%, down 3 basis points from the same time last week. With an adjustable rate mortgage, you usually get a lower interest rate than a fixed rate mortgage for 30 years for the first five years. However, after this time, you may pay more, depending on the terms of your loan and how the rate changes with the market. 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 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 lenders across the country:

Current average mortgage interest rates
Loan type Interest rate A week ago Change
30 year flat rate 3.04% 3.06% -0.02
15 year flat rate 2.38% 2.37% +0.01
30 year giant mortgage rate 2.81% 2.84% -0.03
30 year mortgage refinancing rate 3.10% 3.13% -0.03

Updated on July 16, 2021.

How to find the best mortgage rates

You can get a customized mortgage rate by contacting your local mortgage broker or by using an online calculator. To find the best mortgage for your home, you need to consider your goals and current finances. The following factors affect the interest rate 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. The interest rate is not the only factor that affects the value of your home – be sure to consider other factors as well, such as fees, closing costs, taxes, and discounts. Be sure to talk to a variety of lenders including local and national banks, credit unions and online lenders, and a comparison store to find the best mortgage for you.

What is a good 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 years and 30 years, although mortgages also exist for 10, 20 and 40 years. Another important difference is between fixed and adjustable rate mortgages. For fixed rate mortgages, the interest rates are the same for the entire 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 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. A fixed rate mortgage may be better if you plan to live in the home for some time. While adjustable rate mortgages may have lower initial interest rates, fixed rate mortgages are more stable over time. 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 – it all depends on your situation and goals, so be sure to take into account what is important to you when choosing a mortgage.

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