Mortgage interest rates as of June 30, 2021: Rates go down

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Several major mortgage rates fell today. Average rates for 15- and 30-year fixed mortgages have declined, while average rates for 5/1 variable-rate mortgages have also declined. Mortgage rates fluctuate, but right now they are lower than they have been in years. If you are looking for a new home, maybe now is the time to take out a low fixed rate home loan. Just be sure to review your finances and shop around for the best mortgage for you.

Check out the mortgage rates that meet your specific needs

30-year fixed rate mortgages

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.13%, which is 5 basis points down from a week ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will usually have a smaller monthly payment than a 15 year mortgage, but usually a higher interest rate. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.43%, which is a decrease of 5 basis points from a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.

5/1 adjustable rate mortgages

A 5/1 ARM is averaging 3.13%, down 6 basis points from a week ago. For the first five years, you will typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30 year fixed mortgage. But changes in the market can cause your interest rate to increase after this period, as stated in your loan terms. For borrowers who plan to sell or refinance their home before rates change, an adjustable rate mortgage may be a good option. But if it doesn’t, you might have to pay a significantly higher interest rate if market rates change.

Mortgage rate trends

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders in the United States:

Mortgage interest rates today

term of the loan Daily rate Last week Switch
30 year mortgage rate 3.13% 3.18% -0.05
15-year fixed rate 2.43% 2.48% -0.05
Giant 30-year mortgage rate 3.33% 3.02% +0.31
30-year mortgage refinancing rate 3.20% 3.25% -0.05

Prices exact as of June 30, 2021.

How to shop for the best mortgage rate

You can get a personalized mortgage rate by contacting your local mortgage broker or by using an online calculator. Be sure to take your current finances and goals into account when looking for a mortgage. Things that affect the interest rate you might get on your mortgage include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. In addition to the mortgage interest rate, additional costs including closing costs, fees, points of rebate, and taxes may also be factored into the cost of your home. Be sure to speak with multiple lenders – like local and state banks, credit unions, and online lenders – and shop around to find the best mortgage for you.

What is a good loan term?

When choosing a mortgage, it’s important to consider the length of the loan or the repayment schedule. The most common mortgages are for 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and variable rate mortgages. For fixed rate mortgages, the interest rates are fixed for the term of the loan. For variable rate mortgages, interest rates are set for a number of years (typically five, seven, or 10 years) and then the rate changes each year based on the market interest rate.

When choosing between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to live in your home. Fixed rate mortgages might be better suited if you plan to stay in a house for a while. While variable rate mortgages can sometimes offer lower interest rates initially, fixed rate mortgages are more stable over the long term. However, you might get a better deal with an adjustable rate mortgage if you plan to only keep your home for a few years. Generally, there is no better loan term; it all depends on your goals and your current financial situation. It’s important to do your research and know what’s most important to you when choosing a mortgage.


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