Multiple mortgage rates head back up

JEFF OSTROWSKI
BANKRATE.COM
Link Boston Homes

Multiple benchmark mortgage rates climbed this week. Rates remain near historic lows with the average 30-year rate 1.28 percentage points below the 2019 annual average rate. See below for an interactive rates chart, and a breakdown of today’s rates.

The average rate for the benchmark 30-year fixed mortgage is 2.85 percent, up 1 basis point from a week ago. Last month at this time, the average rate on a 30-year fixed mortgage was higher at 2.93 percent.

At the current average rate, you’ll pay a combined $413.56 per month in principal and interest for every $100,000 you borrow. That’s $0.54 higher compared with last week.

The average 15-year fixed-mortgage rate is 2.35 percent, up 2 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $660 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, 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 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 2.95 percent would cost about $419 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

The average jumbo mortgage rate is now 2.88 percent, unaltered since the same time last week. This time a month ago, the average rate for jumbo mortgages was above that, at 2.98 percent.

At today’s average jumbo rate, you’ll pay $415.16 per month in principal and interest for every $100,000 you borrow.