Multiple benchmark mortgage rates receded today. The average rates on 30-year fixed and 15-year fixed mortgages both dropped. The average rate on 5/1 adjustable-rate mortgages, meanwhile, also trended down.
Mortgage rates are in a constant state of flux, but, overall, they are very low by historical standards. If you’re in the market for a mortgage, it could be a great time to lock in a rate. Just be sure to shop around.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.52 percent, a decrease of 4 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.79 percent.
At the current average rate, you’ll pay principal and interest of $450.16 for every $100,000 you borrow. That’s a decline of $2.24 from last week.
You can use Bankrate’s mortgage calculator to figure out 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 3.11 percent, down 2 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $696 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 faster.
The average rate on a 5/1 adjustable rate mortgageis 3.34 percent, falling 8 basis points over the last week.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.34 percent would cost about $440 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 Trend Index.
Want to see where rates are at this moment? 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:
|30-year fixed jumbo||3.64%||3.69%||-0.05|
|30-year fixed refinance||3.57%||3.62%||-0.05|
Rates as of May 4, 2020.
Shopping for the right mortgage lender? Check out Bankrate’s mortgage lender reviews.
|Product||Purchase Rates||Refinance Rates|
|The chart above links out to loan-specific pagesto help you learn more about rates by mortgage type.|
|30-Year Loan||30-Year Mortgage Rates||30-Year Refinance Rates|
|20-Year Loan||20-Year Fixed Mortgage Rates||20-Year Refinance Rates|
|15-Year Loan||15 Year Fixed Mortgage Rates||15-Year Refinance Rates|
|10-Year Loan||Current 10 Year Mortgage Rates||Current 10-Year Refinance Rates|
|FHA Loan||FHA Mortgage Rates||Current FHA Loan Refinance Rates|
|VA Loan||VA Loan Interest Rates||VA Mortgage Refinance Rates|
|ARM Loan||ARM Interest Rates||ARM Refinance Rates|
|Jumbo Loan||Jumbo Mortgage Rates||Jumbo Mortgage 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.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”