Multiple benchmark mortgage rates trended down today. The average rates on 30-year fixed and 15-year fixed mortgages both declined. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages notched higher.
Rates for mortgages change daily, but, overall, they are very low by historical standards. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just don’t do so without shopping around first.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.86 percent, down 5 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.82 percent.
At the current average rate, you’ll pay a combined $469.38 per month in principal and interest for every $100,000 you borrow. That’s down $2.86 from what it would have been last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 3.21 percent, down 3 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $701 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
The average rate on a 5/1 ARM is 3.78 percent, climbing 3 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 3.78 percent would cost about $465 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? See local mortgage rates.
|30-year fixed jumbo||4.14%||-0.04||4.18%|
|30-year fixed refinance||3.83%||-0.06||3.89%|
Last updated: December 29, 2017.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.