Binyamin Mellish/stocksnap.io

Binyamin Mellish/stocksnap.io

Several closely watched mortgage rates receded today. The average rates on 30-year fixed and 15-year fixed mortgages both were down. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also tapered off.

Rates for mortgages change daily, but they remain low by historical standards. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just make sure you’ve looked around for the best rate first.

See mortgage rates for a variety of rate terms.

30-year fixed mortgages

The average rate you’ll pay for a 30-year fixed mortgage is 3.30 percent, down 10 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 3.52 percent.

At the current average rate, you’ll pay principal and interest of $437.96 for every $100,000 you borrow. That represents a decline of $5.52 over what it would have been last week.

You can use Bankrate’s mortgage loan calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. It will also help you determinehow much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 2.79 percent, down 7 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $681 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

5/1 ARMs

The average rate on a 5/1 adjustable rate mortgageis 3.13 percent, ticking down 5 basis points over the last 7 days.

These loan types are best for those who expect to refinance or sell 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 3.13 percent would cost about $429 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 nationwide respond to Bankrate’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:

Today’s mortgage interest rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 3.30% 3.40% -0.10
15-year mortgage rate 2.79% 2.86% -0.07
30-year jumbo mortgage rate 3.36% 3.49% -0.13
30-year mortgage refinance rate 3.33% 3.47% -0.14

Rates accurate as of June 29, 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, even exceeding 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. 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.

Keep in mind that 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, and expect refinancing to take at least a month..

Factors that influence mortgage rates

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.

Generally speaking, when the economy is strong, more people buy homes. That drives demand for mortgages. Increased demand for mortgages can cause rates to increase. The opposite is also true; less demand can lead to lower rates.

Current mortgage rate environment

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 mortgage lender? Check out Bankrate’s mortgage lender reviews.

See rates for a variety of loan types
Product Purchase Rates Refinance Rates
The chart above links out to loan-specific pages to help our readers learn more about rates by product type.
30-Year Loan Today’s 30-Year Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan 20-Year Mortgage Interest Rates 20-Year Refinance Interest Rates
15-Year Loan 15-Year Mortgage Interest Rates 15-Year Mortgage Refinance Rates
10-Year Loan 10-Year Mortgage Rates Current 10-Year Refinance Rates
FHA Loan Current FHA Mortgage Rates Current FHA Loan Refinance Rates
VA Loan VA Loan Rates Current VA Refinance Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refinance Rates
Jumbo Loan Current Jumbo Mortgage Rates Jumbo Refi Interest Rates