Jessie Roberts/Unsplash

Jessie Roberts/Unsplash

Several benchmark mortgage rates declined today. The average rates on 30-year fixed and 15-year fixed mortgages both trended down. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also fell.

Mortgage rates 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 could be a great time to lock in a rate. 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 3.29 percent, a decrease of 3 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 3.51 percent.

At the current average rate, you’ll pay principal and interest of $437.40 for every $100,000 you borrow. That’s a decline of $1.66 from last week.

You can use Bankrate’s mortgage calculator to estimate your monthly payments 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 2.80 percent, down 2 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $681 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 quickly.

5/1 ARMs

The average rate on a 5/1 ARM is 3.11 percent, falling 6 basis points 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 much higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.11 percent would cost about $428 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 currently? Lenders nationwide 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:

Current average mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 3.29% 3.32% -0.03
15-year fixed rate 2.80% 2.82% -0.02
30-year fixed jumbo rate 3.34% 3.38% -0.04
30-year fixed refinance rate 3.36% 3.43% -0.07

Updated on June 30, 2020.

Should you lock a mortgage rate?

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 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. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. Because mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.

It’s important to keep in mind: 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, with refinancing taking at least a month.

Factors that influence mortgage rates

A number of economic factors influence mortgage rates. Among them are inflation and unemployment. Higher inflation typically leads to higher mortgage rates. The opposite is also true; when inflation is low, mortgage rates typically are as well. As inflation increases, the dollar loses value. That drives investors away from mortgage-backed securities (MBS), which causes the prices to decrease and yields to increase. When yields move higher, rates become 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 landscape

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 on-site rate averages.”

Searching for a mortgage lender? Check out Bankrate’s mortgage lender reviews.

Explore other loan types
Loan term Purchase Rates Refinance Rates
The chart above links out to loan-specific pages to help our readers learn more about rates by mortgage 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 Current 15 Year Mortgage Rates Current 15-Year Refinance Rates
10-Year Loan Current 10 Year Mortgage Rates 10-Year Refinance Rates
FHA Loan Current FHA Mortgage Rates Current FHA Loan Refinance Rates
VA Loan VA Loan Interest Rates VA Mortgage Refinance Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refinance Rates
Jumbo Loan Current Jumbo Mortgage Rates Jumbo Refinance Rates