Expect Best/stocksnap.io

Expect Best/stocksnap.io

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

Rates for mortgages are constantly changing, but they remain much lower overall than they were 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 make sure you’ve looked around for the best rate first.

Compare mortgage rates in your area now.

30-year fixed mortgages

The average rate you’ll pay for a 30-year fixed mortgage is 4.35 percent, a decrease of 13 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.44 percent.

At the current average rate, you’ll pay principal and interest of $497.81 for every $100,000 you borrow. That’s lower by $7.69 than it would have been last week.

You can use Bankrate’s mortgage calculator to figure out 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 3.78 percent, down 14 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $729 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, 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 ARM is 4.11 percent, down 23 basis points over the last 7 days.

These types of loans are best for those 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 4.11 percent would cost about $484 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars 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 right now? See local mortgage rates.

Average mortgage rates
Product Rate Change Last week
30-year fixed 4.35% -0.13 4.48%
15-year fixed 3.78% -0.14 3.92%
30-year fixed jumbo 4.56% -0.14 4.70%
30-year fixed refinance 4.35% -0.14 4.49%

Last updated: May 31, 2018.

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.”