Mortgage interest rates were mostly up compared to a week ago. Rates for 30-year fixed, 5/1 ARMs, and jumbo loans ticked up, while 15-year fixed rates remained flat.
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||3.10%||3.08%||+0.02|
|15-year fixed rate||2.37%||2.37%||N/C|
|5/1 ARM rate||3.16%||3.14%||+0.02|
|30-year fixed jumbo rate||3.12%||3.10%||+0.02|
Rates last updated on June 7, 2021.
The rates listed here are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Monday, June 7th, 2021 at 7:30am.
Mortgage interest rates
30-year fixed-rate mortgage trends higher, +0.02%
The average 30-year fixed-mortgage rate is 3.10 percent, up 2 basis points over the last week. Last month on the 7th, the average rate on a 30-year fixed mortgage was lower, at 3.06 percent.
At the current average rate, you’ll pay a combined $427.02 per month in principal and interest for every $100,000 you borrow. Compared to last week, that’s $1.09 higher.
15-year fixed mortgage goes unchanged
The average rate you’ll pay for a 15-year fixed mortgage is 2.37 percent, unchanged over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $661 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARM moves upward, +0.02%
The average rate on a 5/1 ARM is 3.16 percent, climbing 2 basis points since the same time last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.16 percent would cost about $430 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.
Jumbo loan interest rate moves up, +0.02%
The current average rate you’ll pay for jumbo mortgages is 3.12 percent, an increase of 2 basis points from a week ago. A month ago, jumbo mortgages’ average rate was lesser, at 3.07 percent.
At today’s average rate, you’ll pay $428.10 per month in principal and interest for every $100,000 you borrow. That’s up $1.08 from what it would have been last week.
Recap: How mortgage interest rates have shifted over the past week
- 30-year fixed mortgage rate: 3.10%, up from 3.08% last week, +0.02
- 15-year fixed mortgage rate: 2.37%, unchanged from last week
- 5/1 ARM mortgage rate: 3.16%, up from 3.14% last week, +0.02
- Jumbo mortgage rate: 3.12%, up from 3.10% last week, +0.02
Mortgage refinance rates
30-year mortgage refinance rate climbs, +0.03%
The average 30-year fixed-refinance rate is 3.16 percent, up 3 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.12 percent.
At the current average rate, you’ll pay $430.28 per month in principal and interest for every $100,000 you borrow. That’s an additional $1.63 per $100,000 compared with last week.
How do mortgage rates affect homebuyers?
In this housing boom, mortgage rates have been a mixed bag for buyers. Low rates give borrowers more buying power. A $300,000 loan at 4 percent equates to a monthly payment of $1,432. If rates fall to 3 percent, the payment plunges to $1,265.
One downside, however, is that a significant decline in mortgage rates can help push up home prices. Indeed, home values have increased in recent months.
Here’s an example to show how soaring home prices and plunging mortgage rates can have offsetting effects. Let’s say you chose not to buy a $300,000 home a year ago, when the 30-year mortgage rate was around 3.75 percent. Your 20 percent down payment would’ve been $60,000 and your monthly payment would’ve been $1,111.
The price of the same house has jumped to $335,000 today. However, you can get a 30-year mortgage at 3 percent. As a result, your monthly payment rises only slightly, to $1,130. However, you’ll have to come up with an extra $7,000 to make a 20 percent down payment.
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