Current national mortgage and refinance rates, September 14, 2021: Rates down

Daily Mortgage blog

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Mortgage interest rates sunk across all terms from a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all moved lower.

Average home loan rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 3.02% 3.03% -0.01
15-year mortgage rate 2.31% 2.33% -0.02
5/1 ARM mortgage rate 2.78% 2.80% -0.02
30-year jumbo mortgage rate 3.03% 3.05% -0.02

Rates accurate as of September 14, 2021.

These rates are averages based on the assumptions shown here. Actual rates displayed across the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Tuesday, September 14th, 2021 at 7:30am.

>>Check out historical mortgage interest rate trends

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 for home purchase

30-year mortgage rate slides, -0.01%

The average rate for a 30-year fixed mortgage is 3.02 percent, down 1 basis point since the same time last week. Last month on the 14th, the average rate on a 30-year fixed mortgage was higher, at 3.05 percent.

At the current average rate, you’ll pay $421.60 per month in principal and interest for every $100,000 you borrow.

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

  • 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. Keep in mind: 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 saving for emergencies, retirement, college tuition or 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 mortgage with a lower monthly payment can allow you to save more for retirement.

15-year mortgage rate declines,-0.02%

The average rate for the benchmark 15-year fixed mortgage is 2.31 percent, down 2 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $384 per $100,000 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 faster.

5/1 ARM rate eases, -0.02%

The average rate on a 5/1 ARM is 2.78 percent, falling 2 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.78 percent would cost about $409 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 mortgage slides, -0.02%

The average jumbo mortgage rate is 3.03 percent, a decrease of 2 basis points since the same time last week. This time a month ago, the average rate on a jumbo mortgage was greater than 3.03, at 3.07 percent.

At today’s average rate, you’ll pay a combined $421.60 per month in principal and interest for every $100,000 you borrow.

In summary: How mortgage rates have moved over the past week

  • 30-year fixed mortgage rate: 3.02%, down from 3.03% last week, -0.01
  • 15-year fixed mortgage rate: 2.31%, down from 2.33% last week, -0.02
  • 5/1 ARM mortgage rate: 2.78%, down from 2.80% last week, -0.02
  • Jumbo mortgage rate: 3.03%, down from 3.05% last week, -0.02

Interested in refinancing? See rates for home refinance

30-year fixed-rate refinance slides, –0.01%

The average 30-year fixed-refinance rate is 2.99 percent, down 1 basis point compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.02 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 a decline of $6.44 from 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:

Today’s featured lenders, September 14, 2021