A variety of important mortgage rates saw an increase today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both inched up. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also floated higher. Mortgage interest rates are never set in stone, but interest rates are the lowest they've been in years. Because of this, right now is an excellent time for prospective homebuyers to secure a fixed rate. But as always, make sure to first consider your personal goals and circumstances before buying a house, and compare offers to find a lender who can best meet your needs.
30-year fixed-rate mortgagesFor a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.77%, which is an increase of 4 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually have a greater interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you're looking to minimize your monthly payment.
15-year fixed-rate mortgagesThe average rate for a 15-year, fixed mortgage is 3.15%, which is an increase of 6 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. However, as long as you're able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgagesA 5/1 adjustable-rate mortgage has an average rate of 3.75%, a climb of 2 basis points compared to a week ago. For the first five years, you’ll usually get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But shifts in the market could cause your interest rate to increase after that time, as detailed in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage might be a good option. But if that's not the case, you may be on the hook for a significantly higher interest rate if the market rates shift.
Mortgage rate trendsWe use information collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders across the country:
Average mortgage interest rates
|30-year jumbo mortgage rate||2.84%||2.80%||+0.04|
|30-year mortgage refinance rate||3.76%||3.73%||+0.03|
Rates as of Feb. 3, 2022.