Mortgage Rates Today, September 16, 2021 | Reduced prices


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What we are seeing today is that a handful of closely watched mortgage rates have fallen. Both 30-year and 15-year fixed mortgage rates have tended to decline. We are also witnessing a fall in the average rate of mortgage loans at adjustable rate (ARM) 5/1.

The average mortgage rates are as follows:

What this means for borrowers:
Eligible borrowers continue to have access to low mortgage rates. But buying a home is more than your rate. Exceptionally low inventories have led to an increase in bidding wars and are pushing home prices up at a rapid rate. So, if you are shopping for a home, be prepared to move quickly because the few homes on the market are moving fast.

Mortgage Refinance Rate Today

There is good news if you are considering refinancing, as the average rates for 15-year and 30-year fixed refinance loans have come down. Shorter-term 10-year fixed rate refinance mortgages have not changed.

Today’s refinancing rates are:

Compare mortgage rates nationwide from various lenders.

30-year mortgage rates

The 30-year average fixed mortgage interest rate is 3.02%, a decrease of 2 basis points from the previous week.

You can use NextAdvisor’s home loan payment calculator to figure out what your monthly payments would be and play with additional mortgage payments to figure out how much you could save. The mortgage calculator can also show you all the interest you will pay over the life of the loan.

15-year fixed mortgage rates

The median rate for a 15-year fixed-rate mortgage is 2.31%, which is down 1 basis point from the same period last week.

The monthly payment on a 15-year fixed rate mortgage is higher and will put more strain on your monthly budget than a 30-year mortgage. But 15-year loans have huge advantages: you’ll pay thousands of less interest and pay off your loan much faster.

5/1 ARM interest rate

A 5/1 ARM shows an average rate of 2.79%, down 1 basis point from last week.

An ARM is ideal for households that will sell or refinance before rates change. If not, their interest rates could end up being considerably higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that depending on how your loan rate is adjusted, your payment can increase dramatically.

Mortgage rate trends

A number of factors can influence mortgage rates, from inflation to unemployment. In general, more inflation leads to higher rates and vice versa. The dollar loses value with rising inflation, making mortgage-backed securities less attractive to investors, leading to lower prices and higher yields. And if yields rise, interest rates become more expensive for borrowers.

The Federal Reserve Bank can also influence rates, although it does not set mortgage interest rates directly. Currently, the Federal Reserve purchases billions of dollars in mortgage backed securities (MBS) every month. This increased demand for MBS has helped keep rates from rising. However, as the economy recovers, the Federal Reserve may announce plans to reduce the amount of securities it purchases, which would allow rates to rise.

How we calculate our mortgage interest rates

To see where mortgage rates are going, we rely on information gathered by Bankrate, which is owned by the same parent company as NextAdvisor. The Daily Rate Survey focuses on mortgages where the borrower has a FICO score of 740+, equity of 20% or more, and the house is owner occupied.

This table shows the current average rates based on information provided to Bankrate by lenders across the country:

Updated September 16, 2021.

Is it a good idea to lock in my mortgage rate now?

Mortgage rates go up and down daily, and it is impossible to keep the market in sync. So locking in your interest rate now is a good idea because overall rates are exceptionally low.

When you lock in your rate, ask your lender how long the lockout will last. A rate lockout can last anywhere from 30 to 60 days, which will usually give you enough time to close before the lockout expires. If something happens where you need to extend your rate foreclosure, find out about the fees, as many lenders charge a fee to extend a rate foreclosure.

What future for mortgage rates?

In recent months, mortgage rates have remained stable at around 3%. In the absence of any policy change from the Federal Reserve, it looks like this rate trend will continue. But there are indications that changes could be announced this fall, which could push rates higher, closer to the levels many experts predicted they would reach in 2021.

The US economic recovery will have a significant impact on rates. if we continue to see economic growth, rates are expected to rise. If spending increases, by government and consumers, it will likely lead to higher inflation. However, the Federal Reserve believes that the inflation we are seeing is only temporary, and rates have therefore remained low. But the road to full recovery will be longer. This means that any potential rate hikes are likely to be gradual, rather than increasing overnight.

Where are mortgage rates going in 2021?

Rates stabilized after a period of fluctuation in the first few months of the year. They are expected to remain relatively stable over the next few weeks, but could start to increase towards the end of the year.

Uncertainty surrounding COVID variants has put the brakes on rates. But if the Federal Reserve has enough confidence in the US economy, it could change course and loosen its policies that have kept rates low.

How to get the lowest mortgage rate

There are two main considerations for getting the lowest mortgage rate: the loan-to-value ratio (LTV) and your credit score.

These days, a credit score of 750 or higher will help you qualify for the lowest rate. But, even a score of 700+ can give you a nice rate reduction compared to a lower credit score. For a credit score above 800, the reduction in the interest rate will not be significant.

Mortgage providers give the largest mortgage rate reductions to borrowers deemed to be less risky. A sure-fire way to signal that you’re more likely to make your monthly payments is to bring a larger down payment to the closing table. A down payment of 20% or more will save you money in two ways: with a lower mortgage rate, and you can avoid paying for private mortgage insurance (PMI).


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