Today’s mortgage & refinance rates, October 14th, 2021: Rates rise

Daily Mortgage blog

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Mortgage interest rates increased for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.

Today’s mortgage rates for home purchase
Loan type Interest rate A week ago Change
30-year fixed rate 3.20% 3.13% +0.07
15-year fixed rate 2.43% 2.39% +0.04
5/1 ARM rate 2.80% 2.79% +0.01
30-year fixed jumbo rate 3.21% 3.14% +0.07

Rates last updated on October 14, 2021.

These rates are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates listed on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Thursday, October 14th, 2021 at 7:30am.

You can save thousands of dollars over the life of your mortgage by getting multiple offers. “It is so important to shop around,” says Greg McBride, CFA, Bankrate chief financial analyst. “Not everyone offers the same price, and some lenders may have motivation to be very competitive on price.”

Mortgage rates

30-year fixed-rate mortgage moves up, +0.07%

The average 30-year fixed-mortgage rate is 3.20 percent, up 7 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.02 percent.

At the current average rate, you’ll pay a combined $428.10 per month in principal and interest for every $100k you borrow.

The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:

  • Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
  • Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power. Because you have lower payments, you can qualify for a bigger loan and a more expensive house.
  • Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
  • Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed-rate mortgage with a lower monthly payment can allow you to save more for retirement.

15-year fixed mortgage rate advances,+0.04%

The average rate for the benchmark 15-year fixed mortgage is 2.43 percent, up 4 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $390 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 faster.

5/1 adjustable rate mortgage increases, +0.01%

The average rate on a 5/1 ARM is 2.80 percent, climbing 1 basis point over the 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 mortgages. These loan types are best for people who expect to refinance or sell 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 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 rate moves higher, +0.07%

The average rate for a jumbo mortgage is 3.21 percent, an increase of 7 basis points over the last week. Last month on the 14th, the average rate was below that, at 3.03 percent.

At today’s average jumbo rate, you’ll pay principal and interest of $428.10 for every $100k you borrow.

Rate review: How interest rates have moved over the past week

  • 30-year fixed mortgage rate: 3.20%, up from 3.13% last week, +0.07
  • 15-year fixed mortgage rate: 2.43%, up from 2.39% last week, +0.04
  • 5/1 ARM mortgage rate: 2.80%, up from 2.79% last week, +0.01
  • Jumbo mortgage rate: 3.21%, up from 3.14% last week, +0.07

Interested in refinancing? See rates for home refinance

30-year mortgage refinance trends higher, +0.05%

The average 30-year fixed-refinance rate is 3.17 percent, up 5 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 2.99 percent.

At the current average rate, you’ll pay $428.10 per month in principal and interest for every $100,000 you borrow. That’s an extra $6.50 compared with last week.

Determining how much house you can afford

If you’re not sure how much of your income should go toward housing, follow the traditional 28/36 percent rule. Most financial advisers agree that people should spend no more than 28% of their gross income on housing (i.e., your mortgage payment or rent), and no more than 36% of their gross income on total debt, including mortgage payments, credit cards, student loans, medical bills and the like. Calculate how much house you can afford and determine your monthly payments.

What comes next:

Featured lenders for today, October 14, 2021