Mortgage rates continue to climb
Multiple benchmark mortgage rates moved higher this week. Rates remain near historic lows, with the average 30-year rate 0.88 percentage points below the 2019 annual average rate.
The average 30-year fixed-mortgage rate is 3.25 percent, an increase of 21 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 2.88 percent.
At the current average rate, you’ll pay principal and interest of $435.21 for every $100,000 you borrow. That’s an extra $11.45 compared with last week.
The average 15-year fixed-mortgage rate is 2.53 percent, up 10 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $668 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 more rapidly.
The average rate on a 5/1 adjustable rate mortgage is 3.00 percent, adding 5 basis points from a week ago.
These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.00 percent would cost about $422 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.
The average rate for a jumbo mortgage is 3.29 percent, up 20 basis points since the same time last week. A month ago, the average rate for jumbo mortgages was lower, at 2.92 percent.
At the average rate today for a jumbo loan, you’ll pay principal and interest of $437.40 for every $100,000 you borrow. That’s an increase of $10.93 over what you would have paid last week.
Mortgage rates can differ widely based on overarching market forces, the loan amount, your location, your financial situation and how motivated lenders are to get your business. Keep in mind that the rates we quote are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.
It’s important when you’re looking for a loan to shop around and compare all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.