Binyamin Mellish/stocksnap.io

Binyamin Mellish/stocksnap.io

Multiple key mortgage rates tapered off today. The average for a 30-year fixed-rate mortgage receded, but the average rate on a 15-year fixed saw an increase. Meanwhile, the average rate on 5/1 adjustable-rate mortgages declined.

Mortgage rates 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 make sure you shop around first.

Viewmortgage rates for a variety of rate terms.

30-year fixed mortgages

The average rate for a 30-year fixed mortgage is 3.40 percent, a decrease of 5 basis points over the last seven days. Last month on the 11th, the average rate on a 30-year fixed mortgage was higher, at 3.56 percent.

At the current average rate, you’ll pay $443.48 per month in principal and interest for every $100,000 you borrow. That’s $2.78 lower, compared with last week.

You can use Bankrate’s home loan calculator to get a handle on what your monthly payments would be and see 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 2.83 percent, up 1 basis point over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $682 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 come out several thousand dollars ahead 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 adjustable rate mortgageis 3.17 percent, ticking down 1 basis point from a week ago.

These loan types are best for people who expect to refinance or sell 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 3.17 percent would cost about $431 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 mortgage rate projections.

Want to see where rates are at this moment? Lenders across the nation respond to our 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 3.40% 3.45% -0.05
15-year mortgage rate 2.83% 2.82% -0.01
30-year jumbo mortgage rate 3.46% 3.53% -0.07
30-year mortgage refinance rate 3.44% 3.54% -0.10

Rates accurate as of June 11, 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 pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks to avoid 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.

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.

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.

What are current mortgage rates?

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 “Bankrate’s Rate Averages Methodology.”

Searching for the right mortgage lender? Check out reviews of lenders nationwide.

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