Multiple benchmark mortgage rates dropped today. The average for a 30-year fixed-rate mortgage dropped, but the average rate on a 15-year fixed were unchanged. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages were down.
Rates for mortgages are in a constant state of flux, but they continue to represent a bargain compared to rates 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 be sure to shop around.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.84 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 lower, at 3.55 percent.
At the current average rate, you’ll pay principal and interest of $468.24 for every $100,000 you borrow. That’s down $2.28 from what it would have been last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see the effect of 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 3.33 percent, unchanged since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $707 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 3.29 percent, falling 21 basis points from a week ago.
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 3.29 percent would cost about $437 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? Lenders nationwide respond to Bankrateâ€™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||3.95%||3.92%||+0.03|
|30-year fixed refinance||3.94%||3.90%||+0.04|
Rates as of March 31, 2020.
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.”