A mixed week for mortgage interest rates
Mortgage rates are showing no clear direction this week. The average for a 30-year fixed-rate mortgage held steady, but the average rate on a 15-year fixed moved up. Meanwhile, the average rate on 5/1 adjustable-rate mortgages fell.
The average rate for a 30-year fixed mortgage is 2.87 percent, unchanged over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.
At the current average rate, you’ll pay $414.63 per month in principal and interest for every $100,000 you borrow.
The average 15-year fixed-mortgage rate is 2.35 percent, up 1 basis point from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $660 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 quickly.
The average rate on a 5/1 ARM is 2.95 percent, ticking down 4 basis points over the last week.
These types of loans are best for those who expect to refinance or sell 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 2.95 percent would cost about $419 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
The average rate you’ll pay for a jumbo mortgage is 2.92 percent, up 3 basis points since the same time last week. This time a month ago, the average rate was lower, at 2.87 percent.
At today’s average jumbo rate, you’ll pay principal and interest of $417.30 for every $100,000 you borrow. Compared to last week, that’s $1.61 higher.