Mortgage Rates

Listed here are the newest mortgage charges — and consultants weigh in: Is now the time so that you can purchase a house?


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Mortgage rates remain low: the average interest rate on a 30-year fixed-rate mortgage is now 3.21% (the average annual rate is 3.37%) and drops to 2.47% for a 15-year fixed-rate mortgage (the effective annual rate is 2.71%) According to data released today by Bankrate. For those with excellent credit and other qualifying factors, you will likely find even lower interest rates: there are now some 15 year rates close to 2% and some 30 year rates below 3%, as you can see here and in the table below.

What do these mortgage rates mean?

Mortgage rates remain near historic lows, and today’s rates are roughly the same as the most recent rates for the month, as this table shows.

30-year fixed rate loan

15-year fixed rate loan


3.`23% interest rate / 3.39% APR

2.47% interest rate / 2.71% APR


3.`23% / 3.39%

2.46% / 2.69%


3.`23% / 3.39%

2.42% / 2.66%


3.`23% / 3.39%

2.46% / 2.71%


3.`23% / 3.39%

2.46% / 2.71%


3.`23% / 3.39%

2.46% / 2.71%


3.`23% / 3.39%

2.46% / 2.71%


3.`18% / 3.35%

2.44% / 2.69%


3.`19% / 3.36%

2.44% / 2.70%


3.`18% / 3.35%

2.43% / 2.69%


3.16% / 3.32%

2.42% / 2.68%


3.16% / 3.33%

2.42% / 2.68%


3.22% / 3.39%

2.50% / 2.76%

Source: Bankrate

Fluctuations in mortgage rates are widespread – and can occur due to a variety of factors including inflation, economic growth, and changes in monetary policy. Most of the fluctuations are small, but “a quarter point shift in a couple of weeks would be significant,” said Greg McBride, chief financial analyst at Bankrate.

What is the real interest rate?

While a 1% difference doesn’t sound like much, it can add up to tens of thousands of dollars over the life of a loan. With a 30-year fixed-rate mortgage at $ 300,000 and an APR of 3% versus 4%, you’d end up paying more than $ 60,000 more on the higher rate mortgage. Here’s how to find out if you should buy points to lower your mortgage rate.

Will mortgage rates go up anytime soon?

Of course, no one has a crystal ball, but some experts believe that mortgage rates will rise in the next year or so. McBride says a lot will depend on what happens to inflation, but if the general backdrop is higher inflation, he predicts, “An economy growing faster than the trend growth rate and the Fed reducing its bond purchases to zero, Everything indicates that higher rates. ”Denny Ceizyk, Senior Writer at LendingTree, also sees inflation as a role:“ At some point, inflationary pressures could drive up mortgage rates. ”

Is Now a Good Time to Buy a Home?

The real estate market has changed a lot in the past year and a half, so Holden Lewis, home and mortgage expert at NerdWallet, thinks it’s foolish to predict how house prices will change. “It’s best not to try to time the market. If you wait with the expectation that prices will fall in a year or two, you may find yourself disappointed. ”Instead, buy now, when you are sure you are ready and can afford a home … it’s a very personal question without a single answer, ”says Lewis.

And Denny Ceizyk, senior mortgage writer at LendingTree, recently told Marketplace that the decision whether to buy now depends on whether you are financially prepared to own the home and how long you plan to live in the house you are buy, because even if home prices fall, they will generally bounce back over the long term. “While house prices rise, interest rates remain [near] 60 year lows, making it much cheaper to buy higher priced homes. At some point, inflationary pressure could drive up mortgage interest rates, which speaks in favor of buying sooner rather than later, ”says Ceizyk. Others disagree: Nicole Bachaud, economic data analyst at Zillow, recently told us: “The market is very competitive today and bidding wars are common in many regions of the country. With stocks increasing, waiting to buy could mean a more balanced market between buyers and sellers. ”

That said, when you’re ready to buy and to stay long term, these may be some of the best mortgage rates you will get. But make sure you shop around for the best rates (you can find some 15 year rates close to 2% and some 30 year rates below 3% as you can see here), and find a home that you can afford without breaking the bank. It’s also important to consider other costs such as closing costs (these are usually around 2-5% of the loan cost), insurance, and property taxes.