Current mortgage rates as of October 6, 2021: rates go down

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A variety of major mortgage rates have fallen today. Average interest rates on 15-year and 30-year fixed mortgages have fallen. At the same time, the average rates of 5/1 variable rate mortgages have also declined. While mortgage rates are constantly changing, they are lower than they have been in years. For this reason, now is a great time for potential buyers to secure a fixed rate. But as always, be sure to think about your personal goals and circumstances first before buying a home, and shop around to find a lender who can best meet your needs.

30-year fixed rate mortgages

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.11%, which is a decrease of 2 basis points from seven days ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most commonly used loan term. A 30 year fixed rate mortgage will often have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. While you will pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.38%, down 2 basis points from seven days ago. You will certainly have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year mortgage, even if the interest rate and loan amount are the same. However, as long as you are able to afford the monthly payments, a 15-year loan has several advantages. 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 variable rate mortgage has an average rate of 3.11%, down 4 basis points from last week. 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. However, market fluctuations may cause your interest rate to increase after this period, as stated in your loan terms. If you plan to sell or refinance your home before rates change, an adjustable rate mortgage may be right for you. Otherwise, changes in the market mean that your interest rate could be much higher after the rate is adjusted.

Mortgage rate trends

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

Average mortgage interest rates

Product Rate Last week Switch
30 years fixed 3.11% 3.13% -0.02
15 years fixed 2.38% 2.40% -0.02
Giant 30-year mortgage rate 2.79% 2.79% NC
30-year mortgage refinancing rate 3.08% 3.12% -0.04

Prices as of October 6, 2021.

How to find the best mortgage rates

You can get a personalized mortgage rate by contacting your local mortgage broker or by using an online calculator. Be sure to consider your current finances and goals when looking for a mortgage. A range of factors, including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio, will all affect your mortgage interest rate. 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. The interest rate isn’t the only factor that affects the cost of your home: Consider other factors like fees, closing costs, taxes, and points of call. Be sure to shop around with multiple lenders – for example, credit unions and online lenders in addition to banks – to find a mortgage that’s right for you.

What is a good loan term?

An important consideration when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered mortgage terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and adjustable rate mortgages. The interest rates on a fixed rate mortgage are stable throughout the life of the loan. Unlike a fixed rate mortgage, the interest rates on a variable rate mortgage are only fixed for a certain term (most often five, seven or 10 years). After that, the rate changes every year based on the market rate.

An important factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is 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 may offer lower interest rates initially, fixed rate mortgages are more stable over time. However, you may get a better deal with an adjustable rate mortgage if you only intend to 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 understand your priorities when choosing a mortgage.


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