Mortgage and refinance rates, November 20, 2020 | Rates retreat

Daily Mortgage blog

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Several key mortgage rates decreased today. The average rates on 30-year fixed and 15-year fixed mortgages both tapered off. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also trended down.

Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 2.95% 2.97% -0.02
15-year fixed rate 2.47% 2.48% -0.01
30-year fixed jumbo rate 2.93% 3.00% -0.07
30-year fixed refinance rate 3.00% 3.10% -0.10

Rates last updated on November 20, 2020. These rates are averages based on the assumptions shown here. Actual rates on-site may vary.

Mortgage rates change daily, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just don’t do so without shopping around first.

See mortgage rates for a variety of rate terms.

Mortgage rates for home purchase

30-year fixed mortgages

The average 30-year fixed-mortgage rate is 2.95 percent, a decrease of 2 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.03 percent.

At the current average rate, you’ll pay $418.91 per month in principal and interest for every $100,000 you borrow. That’s down $1.08 from what it would have been last week.

You can use Bankrate’s mortgage loan calculator to estimate your monthly payments and find out how much you’ll save by adding extra payments. 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 2.47 percent, down 1 basis point since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $665 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment would, 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 Adjustable Rate Mortgage Rates

The average rate on a 5/1 adjustable rate mortgageis 3.03 percent, falling 1 basis point over the last week.

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

Monthly payments on a 5/1 ARM at 3.03 percent would cost about $423 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

When to lock your mortgage rate

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. Certain lenders will lock rates for longer periods of time, sometimes for more than 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.

The benefit of a rate lock is that if interest rates rise, you’re locked into the guaranteed rate. You may be able to find a lender that offers a floating rate lock. A floating rate lock lets you get a lower rate if interest rates decline before closing your loan. It could be worth the cost in a declining rate environment. 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.

It’s important to keep in mind: During the COVID-19 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.

Mortgage refinance rates

30-year refinance rates

Today’s average refinance rate for a 30-year fixed-rate mortgage is 3.00 percent, decreasing 10 basis points compared to a week ago. Last month on the 20th, the average rate on a 30-year mortgage was 3.19 percent.

At the current average rate, you’ll pay principal and interest of $421.60 for every $100k you borrow. Compared to last week, that’s $5 lower. Compared to a month ago, that’s $10 lower.

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

Read about other loan terms:

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Check rates for specific loan types
Loan term Purchase Rates Refinance Rates
The chart above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan 30-Year Interest Rates 30-Year Refinance Rates
20-Year Loan 20-Year Fixed Mortgage Rates 20-Year Refi Rates
15-Year Loan 15 Year Fixed Mortgage Rates 15-Year Refi Interest Rates
10-Year Loan Current 10 Year Mortgage Rates Current 10-Year Refinance Rates
FHA Loan FHA Mortgage Interest Rates FHA Refinance Interest Rates
VA Loan VA Mortgage Interest Rates VA Refinance Rates
ARM Loan ARM Mortgage Rates Current ARM Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates

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.