Today’s mortgage and refinance rates, July 22nd, 2021 | Rates down

Daily Mortgage blog

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Average mortgage rates sunk across all terms from a week ago. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

Current average mortgage rates for home purchase
Loan type Interest rate A week ago Change
30-year fixed rate 2.98% 3.04% -0.06
15-year fixed rate 2.33% 2.38% -0.05
5/1 ARM rate 2.80% 2.82% -0.02
30-year fixed jumbo rate 2.99% 3.04% -0.05

Rates last updated on July 22, 2021.

The rates listed above are marketplace averages based on the assumptions 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 Thursday, July 22nd, 2021 at 7:30am.

Mortgage interest rates

30-year mortgage rate falls, -0.06%

The average rate for the benchmark 30-year fixed mortgage is 2.98 percent, a decrease of 6 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.13 percent.

At the current average rate, you’ll pay a combined $415.16 per month in principal and interest for every $100,000 you borrow. That’s down $6.44 from what it would have been last week.

15-year fixed mortgage retreats,-0.05%

The average rate for the benchmark 15-year fixed mortgage is 2.33 percent, down 5 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $384 per $100k borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment 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 more quickly.

5/1 ARM dips, -0.02%

The average rate on a 5/1 ARM is 2.80 percent, ticking down 2 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage loans 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 mortgages. These loan types are best for those 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 2.80 percent would cost about $409 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Jumbo mortgage interest rate trends down, -0.05%

is 2.99 percent, down 5 basis points over the last seven days. This time a month ago, the average rate was greater than 2.99, at 3.14 percent.

At the current average rate, you’ll pay $415.16 per month in principal and interest for every $100k you borrow. That’s lower by $6.44 than it would have been last week.

Recap: How mortgage rates have moved

  • 30-year fixed mortgage rate: 2.98%, down from 3.04% last week, -0.06
  • 15-year fixed mortgage rate: 2.33%, down from 2.38% last week, -0.05
  • 5/1 ARM mortgage rate: 2.80%, down from 2.82% last week, -0.02
  • Jumbo mortgage rate: 2.99%, down from 3.04% last week, -0.05

Interested in refinancing? See mortgage refinance rates

30-year mortgage refinance rate trends down, –0.14%

The average 30-year fixed-refinance rate is 2.96 percent, down 14 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.21 percent.

At the current average rate, you’ll pay $415.16 per month in principal and interest for every $100,000 you borrow. That represents a decline of $6.44 over what it would have been last week.

How do mortgage rates affect homebuyers?

In a housing boom, low mortgage rates can present pros and cons for borrowers. One pro: 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.

Today, the price of the same home has jumped to $335,000, but you can land a 30-year loan 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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