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Today's mortgage interest rates decline. Here's what it means for you

Nov. 23, 2021: Mortgage rates went down since last week, and they continue to be at historic lows.

4 min read
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A few major mortgage rates declined today, including the average interest rates for both 15-year fixed and 30-year fixed mortgages. For variable rates, the 5/1 adjustable-rate mortgage also decreased. Although mortgage rates are always changing, they are quite low right now. If you plan to finance a home, now might be a good time to get a fixed rate. But as always, make sure to first consider your personal goals and circumstances before buying a house, and shop around for a lender who can best meet your needs.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.14%, which is a decline of 5 basis points from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one -- but usually 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 2.44%, which is a decrease of 2 basis points compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. You'll most likely 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 3.13%, a fall of 5 basis points compared to last week. You'll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage 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 shifts with the market rate. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, changes in the market means your interest rate could be significantly higher once the rate adjusts.

Mortgage rate trends

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

Current average mortgage interest rates

Loan typeInterest rateA week agoChange
30-year fixed rate3.14%3.19%-0.05
15-year fixed rate2.44%2.46%-0.02
30-year jumbo mortgage rate2.76%2.80%-0.04
30-year mortgage refinance rate 3.13%3.16%-0.03

Updated on Nov. 23, 2021.

How to find personalized mortgage rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. In order to find the best home mortgage, you'll need to take into account your goals and overall financial situation. Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to 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 costs such as fees, closing costs, taxes and discount points. Be sure to speak with a variety of lenders -- for example, local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage loan for you.

How does the loan term impact my mortgage?

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. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are stable for the life of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the market rate.

When choosing between a fixed-rate and adjustable-rate mortgage, you should take into consideration how long you plan to live in your house. Fixed-rate mortgages might be a better fit for those who plan on living in a home for quite some time. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. However you might get a better deal with an adjustable-rate mortgage if you're only planning to keep your home for a few years. The best loan term all depends on your situation and goals, so be sure to consider what's important to you when choosing a mortgage.