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Mortgage rates are holding steady. Today’s 5/1 adjustable-rate and 15-year fixed-rate averages are both down — though by just a few basis points — and the 30-year fixed rate is essentially unchanged from yesterday. Despite the minor fluctuations, overall, all of these mortgage interest rates are at, or near, historic lows. (That goes for mortgage refinance interest rates, as well.) The bottom line: If you’re considering buying a house, this is a great time to shop for a mortgage. 

Take a look at mortgage rates for different types of loan

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 3.01%, which is the same compared to one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one — but often a higher interest rate. 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 mortgages

The average rate for a 15-year, fixed mortgage is 2.30%, which is a decrease of 1 basis point from seven days ago. You’ll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. 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 mortgages

A 5/1 ARM has an average rate of 3.02%, a decrease of 1 basis point from the same time last week. With an adjustable-rate mortgage mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But you may end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you could be on the hook for a much higher interest rate if the market rates shift.

Mortgage rate trends

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders across the US:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 3.01% 3.01% N/C
15-year fixed 2.30% 2.31% -0.01
30-year jumbo mortgage rate 2.78% 2.80% -0.02
30-year mortgage refinance rate 3.00% 2.99% +0.01

Rates as of July 30, 2021.

How to find personalized mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. In order to find the best home mortgage, you’ll need to take into account your goals and current finances. A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect your mortgage interest rate. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider other factors such as fees, closing costs, taxes and discount points. Make sure to shop around with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a loan that works best for you.

What is a good loan term?

One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only set for a certain amount of time (commonly five, seven or 10 years). After that, the rate adjusts annually based on the market interest rate.

One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on staying in your house. If you plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However you might get a better deal with an adjustable-rate mortgage if you only have plans to keep your home for a few years. The best loan term is entirely dependent on your situation and goals, so be sure to take into consideration what’s important to you when choosing a mortgage.

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Mortgage rates for July 30, 2021: Rates are low

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