Current National Mortgage & Refinance Rates, July 20, 2021 – Rates down

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Mortgage interest rates were down across the board from a week ago. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all moved lower.

Average home loan rates
Loan type Interest rate A week ago Change
30-year fixed rate 2.98% 3.03% -0.05
15-year fixed rate 2.33% 2.37% -0.04
5/1 ARM rate 2.81% 2.82% -0.01
30-year fixed jumbo rate 2.98% 3.03% -0.05

Rates last updated on July 20, 2021.

The rates listed here are averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Tuesday, July 20th, 2021 at 7:30am.

Mortgage rates

30-year mortgage trends down, -0.05%

The average rate you’ll pay for a 30-year fixed mortgage is 2.98 percent, down 5 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.18 percent.

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

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, such as 15 years, the 30-year mortgage offers lower, more affordable 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 mortgage with a smaller monthly payment can allow you to save more for retirement.

15-year fixed mortgage falls,-0.04%

The average 15-year fixed-mortgage rate is 2.33 percent, down 4 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $384 per $100,000 borrowed. That’s obviously 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 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 rate dips, -0.01%

The average rate on a 5/1 ARM is 2.81 percent, ticking down 1 basis point from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate can change from time to time throughout the life of the loan, unlike fixed-rate loans. 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 2.81 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 down, -0.05%

is 2.98 percent, down 5 basis points from a week ago. Last month on the 20th, the average rate was above that, at 3.20 percent.

At the current average rate, you’ll pay principal and interest of $415.16 for every $100k you borrow. That’s a decline of $6.44 from last week.

Summary: How mortgage interest rates have changed this week

  • 30-year fixed mortgage rate: 2.98%, down from 3.03% last week, -0.05
  • 15-year fixed mortgage rate: 2.33%, down from 2.37% last week, -0.04
  • 5/1 ARM mortgage rate: 2.81%, down from 2.82% last week, -0.01
  • Jumbo mortgage rate: 2.98%, down from 3.03% last week, -0.05

Refinance rates

30-year fixed-rate refinance eases, –0.12%

The average 30-year fixed-refinance rate is 2.99 percent, down 12 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.25 percent.

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

Current mortgage rate landscape

Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, 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 below 3%. 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.

What next:

Featured lenders, July 20, 2021