Mortgage Rates

Mortgage rates of interest for July 2, 2021: Charges fall


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A handful of home mortgage rates have fallen down today. Both 15-year and 30-year fixed mortgage rates fell. At the same time, the average interest rate for variable rate 5/1 mortgages also fell. Mortgage rates are never set in stone, but rates are historically low. For those looking to secure a fixed rate for themselves, now is a good time to finance a home. But as always, before buying a home, you should first consider your personal goals and circumstances, and shop around to find a lender that best suits your needs.

View the mortgage rates that suit your individual needs

30-year fixed-rate mortgages

The average 30 year mortgage rate is 3.08%, a 5 basis point decrease from the previous week. (One basis point is 0.01%.) The most common repayment term is a 30-year fixed-rate mortgage. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year – but usually a higher interest rate. Although you’ll pay more interest over time – you pay off your loan over a longer period of time – if you’re looking for a lower monthly payment, a 30-year fixed-rate mortgage can be a good option.

15-year fixed-rate mortgages

The average interest rate on a 15-year fixed-rate mortgage is 2.39%, which is a 5 basis point decrease from the same point in time last week. Compared to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage has a higher monthly payment for the same mortgage lending value and interest rate. But a 15 year loan is usually a better deal as long as you can afford the monthly payments. You will usually get a lower interest rate and pay less overall interest because you will pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.08%, a decrease of 6 basis points from the same point in time last week. An ARM mortgage typically gives you a lower interest rate for the first five years than a 30-year fixed-rate mortgage. But market shifts can cause your interest rate to rise after this time, as detailed in the terms of your loan. For borrowers planning to sell or refinance their home before interest rates change, an adjustable rate mortgage can be a good option. However, if it doesn’t, you may be looking for a significantly higher rate if market rates change.

Mortgage rate trends

We use information collected by Bankrate, owned by the same parent company as CNET, to keep track of daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:

The current mortgage rates

Repayment term Daily rate Last week change
30 year mortgage rate 3.08% 3.13% -0.05
15 years fixed rate 2.39% 2.44% -0.05
30 year jumbo mortgage rate 3.33% 3.33% opener
30 year mortgage refinancing rate 3.15% 3.21% -0.06

Prices valid from July 2nd, 2021.

How to buy the best mortgage rate

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. To find the best mortgage for your home, you need to consider your goals and general financial situation. Specific interest rates vary based on factors such as creditworthiness, down payment, debt-to-income ratio, and loan-to-value ratio. Good credit, a higher down payment, a lower DTI, a lower LTV, or a combination of these factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – consider other costs too, such as fees, closing costs, taxes, and discount points. You should compare with multiple lenders – including credit unions and online lenders, as well as local and national banks – to find a mortgage that suits you.

What is the best repayment term?

One important thing to consider when choosing a mortgage is the repayment term or payment schedule. The most common mortgage terms on offer are 15 year and 30 year, although you can also find 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and adjustable rate mortgages. The interest rates on a fixed-rate mortgage are fixed for the life of the loan. With variable rate mortgages, the interest rates are fixed for a certain number of years (usually five, seven or 10 years), then the interest rate fluctuates annually based on the current interest rate on the market.

When deciding between a fixed rate mortgage and an adjustable rate mortgage, you should consider how long you plan to stay in your own home. If you’re looking to stay in a new home for the long term, fixed-rate mortgages may be a better option. Fixed rate mortgages offer longer stability compared to adjustable rate mortgages, but adjustable rate mortgages can sometimes offer lower interest rates upfront. However, if you don’t plan to keep your new home for more than three to ten years, a variable rate mortgage may be a better deal for you. The best repayment term depends entirely on your situation and your goals. So, when choosing a mortgage, think about what is important to you.

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