Mortgage Rates

Each day Mortgage Charges Are Rising | October 23 & 24, 2021


The rate on a 30-year fixed-rate mortgage averaged 3.541% at the end of the week, an increase from Monday. Average rates for both the 15-year fixed-rate mortgage and the 5/1 variable rate mortgage also closed the week higher, rising to 2.571% and 2.48%, respectively.

Although rates fluctuated during the week, the 30-year rate closed 0.106 percentage points above Monday’s rate. Compared to the previous month, the 30-year average is 0.218 percentage points higher.

Although the rates tend to be higher, they are very low compared to previous years. Borrowers with strong credit ratings should be able to secure competitive interest rates and low monthly payments if they intend to purchase or refinance loans.

  • The most recent interest rate on a 30-year fixed-rate mortgage is 3.541%.
  • The most recent interest rate on a 15-year fixed-rate mortgage is 2.571%.
  • The latest rate on a 5/1 Jumbo ARM is 2.48%.
  • The latest rate on a 7/1 compliant ARM is 3.438%.
  • The latest rate on a 10/1 compliant ARM is 4.013%.

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 – roughly the national average – could pay if he or she applies for a home loan now. Daily rates are based on the average price that 8,000 lenders offered applicants on the previous business day. Freddie Mac’s weekly interest rates will generally be lower as they measure the interest rates offered to borrowers with higher creditworthiness.

Current mortgage rates: 30-year fixed rate mortgages

  • The 30-year rate is 3.541%.
  • This is a day inwrinkle of 0.038 percentage points. ⇑
  • That’s a month inwrinkle of 0.218 percentage points. ⇑

Most borrowers choose the stability of a fixed-rate mortgage. Neither the interest rate nor the monthly payment change during the life of the loan. The most popular term is the 30-year loan. Its long payback period means your monthly payments are relatively small. However, when compared to a shorter term loan, the interest rate is higher, so you will pay more interest over time.

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Average mortgage rates

Data based on U.S. mortgage loans completed on October 21, 2021

Credit type Oct 21 Last week Change
15 years firmly conventional 2.57% 2.53% 0.04%
Firmly conventional for 30 years 3.54% 3.47% 0.07%
7/1 ARM rate 3.44% 3.35% 0.09%
10/1 ARM rate 4.01% 3.82% 0.19%

Your actual price may differ

Current mortgage rates: 15 years fixed rate Mortgage rates

  • The 15-year rate is 2.571%.
  • This is a day inwrinkle of 0.015 percentage points. ⇑
  • That’s a month inwrinkle of 0.144 percentage points. ⇑

Borrowers who opt for a 15 year fixed rate loan are often attracted by its lower interest rate and shorter payback period compared to a longer term loan. However, this short term also means that the monthly payments are higher compared to a corresponding 30 year loan, so this may not be manageable for some borrowers.

Current Mortgage Rates: 5/1 jumbo floating rate mortgage rate

  • The 5/1 ARM rate is 2.48%.
  • That is unchanged of yesterday. ⇔
  • That’s a month inwrinkle of 0.287 percentage points. ⇑

Adjustable rate mortgages start with a low, fixed rate that eventually becomes adjustable and recalculated on a regular basis. For example, the interest rate on a 5/1 floating rate loan is set for five years before being reset every year. Once the interest rate adjusts, it reacts to market conditions and could lead to higher interest rates.

Current mortgage rates: VA, FHA, and jumbo loan rates

The average interest rates on FHA, VA, and Jumbo loans are:

  • The interest rate on a 30 year FHA mortgage is 3.267%. ⇑
  • The interest rate on a 30 year VA mortgage is 3.306%. ⇑
  • The interest rate on a 30 year jumbo mortgage is 3.665%. ⇑

Current mortgage lending rates

The average interest rates for 30 year loans, 15 year loans, and 5/1 jumbo ARMs are:

  • The refinancing rate for a 30-year fixed-rate refinancing is 3.664%. ⇑
  • The refinancing rate for a 15-year fixed-rate refinancing is 2.679%. ⇑
  • The refinancing rate for a 5/1 Jumbo ARM is 2.782%. ⇔
  • The refinancing rate for a 7/1 compliant ARM is 3.961%. ⇑
  • The refinancing rate on a 10/1 compliant ARM is 4.153%. ⇑

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Average mortgage refinancing rates

Data based on U.S. mortgage loans completed on October 21, 2021

Credit type Oct 21 Last week Change
15 years firmly conventional 2.68% 2.64% 0.04%
Firmly conventional for 30 years 3.66% 3.61% 0.05%
7/1 ARM rate 3.96% 3.88% 0.08%
10/1 ARM rate 4.15% 4.07% 0.08%

Your actual price may differ

Where are mortgage rates going this year?

Mortgage rates fell by 2020. Millions of homeowners responded to the low mortgage rates by refinancing existing loans and taking out new ones. Many people bought houses that they might not have been able to afford at higher prices.

In January 2021, rates briefly fell to their lowest level on record, but trended higher over the course of the month and into February.

Looking ahead, experts assume that interest rates will continue to rise in 2021, but modestly. Factors that could affect rates include how quickly the COVID-19 vaccines will be distributed and when lawmakers can agree on another economic aid package. More vaccinations and government incentives could lead to improved economic conditions, which would raise rates.

While mortgage rates are likely to rise this year, experts say the rise won’t come overnight and won’t be a dramatic jump. Interest rates should stay near historically low levels in the first half of the year and rise slightly later in the year. Even when interest rates rise, it’s still a good time to buy a new home or refinance a mortgage.

Some of the factors that affect mortgage rates include:

  • The Federal Reserve. When the pandemic hit the United States in March 2020, the Fed took swift action. The Fed announced plans to keep money flowing through the economy by lowering the short-term federal fund interest rate to 0% to 0.25%, which is as low as they go. The central bank also promised to buy mortgage-backed securities and government bonds to prop up the real estate finance market. The Fed has reaffirmed its commitment to this policy several times for the foreseeable future, most recently at a monetary policy meeting at the end of January.
  • The 10-year treasury note. Mortgage rates move in step with the yields on 10-year government bonds. Yields fell below 1% for the first time in March 2020 and have been rising slowly since then. Yields are currently above 1% since the beginning of the year, which is driving interest rates up slightly. On average, there is typically a 1.8 point spread between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. Low employment and GDP growth means the economy is weak, which can drive interest rates down. Thanks to the pandemic, unemployment hit an all-time high early last year and has not yet recovered. GDP also fell, and although it has recovered somewhat, there is still plenty of room for improvement.

Tips for the lowest possible mortgage rate

There is no one universal mortgage rate that all borrowers get. Qualifying for the lowest mortgage rates takes a bit of work and depends on both personal financial factors and market conditions.

Check your credit history and credit report. Mistakes or other red flags can drag your creditworthiness down. Borrowers with the highest creditworthiness get the best interest rates. Therefore, it is important to check your credit report before you start looking for a home. Taking steps to fix bugs can increase your score. If you have a high credit card balance, paying off can be a quick boost too.

Save money on a sizeable down payment. This will lower your loan-to-value ratio, ie how much of the house price the lender has to finance. A lower LTV usually means a lower mortgage rate. Lenders also want to see money that has been stored in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best price. Don’t be satisfied with the first rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rates. In addition to traditional banks, consider different types of lenders, such as credit unions and online lenders.

Likewise. Take the time to read up on the different types of credit. While the 30 year fixed rate mortgage is the most common mortgage, you should consider a shorter term loan such as a 15 year loan or an adjustable rate mortgage. These types of loans often have a lower interest rate than a traditional 30 year mortgage. Compare the cost of each to see which one best fits your needs and financial situation. Government loans – such as those supported by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – can be cheaper options for those who qualify.

Finally, secure your tariff. Locking in your interest rate once you find the right interest rate, loan product, and lender can help ensure that your mortgage rate does not go up before you take out the loan.

Our mortgage rate method

Money Daily Mortgage Rate shows the average rate offered by over 8,000 lenders in the United States for which the latest daily business rates are available. Today we are showing prices for Thursday, October 21, 2021. Our interest rates reflect what a typical borrower with a credit score of 700 currently expects to pay for a home loan. These prices were offered to people off 20% and include discount points.

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