Mortgage rates diverged today, but one key rate tapered off. The average for a 30-year fixed-rate mortgage slid down, but the average rate on a 15-year fixed were higher. Meanwhile, the average rate on 5/1 adjustable-rate mortgages floated higher.
Mortgage rates are in a constant state of flux, but they remain 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 make sure you’ve looked around for the best rate first.
30-year fixed mortgages
The average 30-year fixed-mortgage rate is 4.35 percent, a decrease of 16 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.54 percent.
At the current average rate, you’ll pay a combined $497.81 per month in principal and interest for every $100,000 you borrow. That represents a decline of $9.47 over what it would have been last week.
You can use Bankrate’s mortgage calculator to estimate 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 3.71 percent, up 1 basis point over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $725 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 3.98 percent, rising 7 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 3.98 percent would cost about $476 for each $100,000 borrowed over the initial five years, but could ratchet higher 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.
|30-year fixed jumbo||4.41%||+0.05||4.36%|
|30-year fixed refinance||4.41%||-0.14||4.55%|
Last updated: January 15, 2019.
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.”