Mortgage Interest Rates Today, July 3, 2020 | Rates ease

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Several key mortgage rates ticked downward today. The average rates on 30-year fixed and 15-year fixed mortgages both receded. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also slid lower.

Rates for mortgages change daily, but they remain low by historical standards. If you’re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just don’t do so without shopping around first.

Compare mortgage interest rates from lenders across the nation.

30-year fixed mortgages

The average rate for a 30-year fixed mortgage is 3.25 percent, a decrease of 8 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 3.49 percent.

At the current average rate, you’ll pay a combined $435.21 per month in principal and interest for every $100,000 you borrow. That’s down $4.40 from what it would have been last week.

You can use Bankrate’s mortgage payment calculator to estimate your monthly payments and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 2.76 percent, down 8 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $679 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARMs

The average rate on a 5/1 ARM is 3.12 percent, down 2 basis points over the last 7 days.

These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.12 percent would cost about $428 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our rate trends page.

Want to see where rates are currently? Lenders across the nation respond to Bankrate.com’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:

Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 3.25% 3.33% -0.08
15-year fixed rate 2.76% 2.84% -0.08
30-year fixed jumbo rate 3.32% 3.39% -0.07
30-year fixed refinance rate 3.34% 3.36% -0.02

Updated on July 3, 2020.

Lock your mortgage rate now or wait?

A rate lock guarantees your interest rate for a specified period of time. It’s common for lenders to offer 30-day rate locks for a fee or to include the price of the rate lock into your loan. Some lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be costly. In today’s volatile market, some lenders will lock an interest rate for only two weeks to avoid unnecessary risk.

With a rate lock, if interest rates rise, you’re locked into the guaranteed rate. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. Because there is no guarantee of where mortgage rates will head in the future, it may be smart to lock in a low rate instead of holding out on rates for potentially decline further.

Remember: During the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, with refinancing taking at least a month.

What causes mortgage rates to move

Mortgage rates are influenced by a range of economic factors, from inflation to unemployment numbers. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives off investors for mortgage-backed securities, causing the prices to fall and yields to climb. When yields climb, rates get more expensive for borrowers.

A strong economy usually means more people buying homes, which drives demand for mortgages. This increased demand can push rates higher. The opposite is also true; less demand can trigger a drop in rates.

Current mortgage rate landscape

The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. For a while, some lenders were increasing rates because they were struggling to deal with the demand. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s average rates.”

Shopping for the right lender? See reviews of top lenders.

Explore other loan types
Product Purchase Rates Refinance Rates
The chart above links out to loan-specific pages to help you learn more about rates by loan type.
30-Year Loan Today’s 30-Year Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan Current 20 Year Mortgage Rates Current 20-Year Refinance Rates
15-Year Loan 15 Year Fixed Mortgage Rates Current 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Interest Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Loan Rates FHA Refinance Interest Rates
VA Loan Current VA Mortgage Rates VA Refinance Loan Rates
ARM Loan ARM Interest Rates ARM Refinance Interest Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates