Mortgage interest rates today March 1, 2021: Rates push higherMarch 1, 2021
A variety of major mortgage rates boasted increases today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both crept higher. At the same time, average rates for 5/1 adjustable-rate mortgages also went up. Mortgage interest rates are never set in stone, but interest rates are historically low. If you’re looking to lock in a fixed rate, now is a great time to buy a home. Before you buy a home, remember to consider your personal needs and financial situation, and shop around for various lenders to find the best one for you.
Compare nationwide mortgage rates from various lenders
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 3.25%, which is a growth of 21 basis points from seven days ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but usually a higher interest rate. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.53%, which is an increase of 10 basis points 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. However, as long as you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll typically get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage faster.
5/1 Adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 3.29%, a rise of 20 basis points compared to last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But you could end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. Because of this, an adjustable-rate mortgage 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 may be on the hook for a significantly higher interest rate if the market rates change.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders across the US:
Average mortgage interest rates
|30-year jumbo mortgage rate||3.00%||2.95%||+0.05|
|30-year mortgage refinance rate||3.32%||3.07%||+0.25|
Rates as of March 1, 2021.
How to find the best mortgage rates
When you’re ready to apply for a loan, you can connect with a local mortgage broker or search online. When shopping around for home mortgage rates, consider your goals and current finances. The mortgage interest rate you get could be affected by: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI ratio and a lower LTV ratio to get a lower interest rate. Aside from the mortgage rate, factors such as closing costs, fees, discount points and taxes might also affect the cost of your home. Make sure you speak with several different lenders — such as local and national banks, credit unions or online lenders — and comparison shop to find the best loan for you.
What is a good loan term?
When picking a mortgage, you should consider the loan term or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20-, and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are stable for the duration of the loan. For adjustable-rate mortgages, interest rates are fixed for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the market rate One important factor to take into consideration when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on residing in your house. If you plan on staying long-term in their 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 in the long term. However you may get a better deal with an adjustable-rate mortgage if you only intend to keep your home for a few years. The “best” loan term is entirely dependent on your personal situation and goals, so make sure to consider what’s important to you when choosing a mortgage.