Today’s national mortgage & refinance rates, July 21, 2021 – Rates down

Daily Mortgage blog

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Mortgage rates came down on all loan terms from a week ago. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

Average mortgage rates today
Product Rate Last week Change
30-year fixed 2.98% 3.02% -0.04
15-year fixed 2.33% 2.37% -0.04
5/1 ARM 2.80% 2.82% -0.02
30-year fixed jumbo 2.99% 3.03% -0.04

Rates as of July 21, 2021.

The rates listed above are marketplace averages based on the assumptions 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 Wednesday, July 21st, 2021 at 7:30am.

Mortgage rates for home purchase

30-year mortgage falls, -0.04%

The average 30-year fixed-mortgage rate is 2.98 percent, a decrease of 4 basis points from a week ago. 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’s lower by $6.44 than it would have been last week.

When to consider a 30-year fixed mortgage

Choosing the right home loan is an important step in the homebuying process, and you have a lot of options. You need to take several factors into consideration, including your credit score, income, down payment amount, budget, and financial goals.

15-year mortgage slides,-0.04%

The average rate you’ll pay for a 15-year fixed mortgage 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 roughly $384 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 drops, -0.02%

The average rate on a 5/1 adjustable rate mortgageis 2.80 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. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for those who expect to sell or refinance 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 2.80 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.

Current jumbo mortgage rate declines, -0.04%

The average jumbo mortgage rate is 2.99 percent, down 4 basis points over the last seven days. A month ago, the average rate on a jumbo mortgage was greater than 2.99, at 3.19 percent.

At today’s average rate, you’ll pay a combined $415.16 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $6.44 lower.

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

  • 30-year fixed mortgage rate: 2.98%, down from 3.02% last week, -0.04
  • 15-year fixed mortgage rate: 2.33%, down from 2.37% last week, -0.04
  • 5/1 ARM mortgage rate: 2.80%, down from 2.82% last week, -0.02
  • Jumbo mortgage rate: 2.99%, down from 3.03% last week, -0.04

Refinance rates

Current 30 year mortgage refinance rate retreats, –0.14%

The average 30-year fixed-refinance rate is 2.96 percent, down 14 basis points from 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.

Are mortgage rates rising or falling?

Mortgage rates have fallen to record lows in recent months. Where they’ll go from here is nearly impossible to predict. The direction of rates depends largely on the direction of the economy. It also depends on how well the coronavirus pandemic is contained. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. On the other hand, if the economy struggles because of coronavirus-related setbacks, mortgage rates will remain at record lows or fall even further.

What next:

Featured lenders, July 21, 2021