Mortgage interest rates as of May 19, 2021: rates increase
Some major mortgage rates have gone up today. Both 15-year fixed and 30-year fixed mortgage rates have increased. At the same time, the average rates for 5/1 variable rate mortgages were also raised. Although mortgage rates are constantly changing, they are lower than they have been in years. If you are looking to lock in a fixed rate, now is a great time to finance a home. But as always, think about your personal goals and circumstances first before buying a home, and compare offers to find the lender that will best meet your needs.
Find current mortgage rates for today
30 year fixed rate mortgages
The 30-year average fixed mortgage interest rate is 3.09%, an increase of 4 basis points from a week ago. (One basis point equals 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed-rate mortgage will often have a higher interest rate than a 15-year fixed-rate mortgage – but also a lower monthly payment. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.
15 year fixed rate mortgages
The average rate for a 15-year fixed mortgage is 2.37%, an increase of 2 basis points from seven days ago. You will likely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even though the interest rate and loan amount are the same. But a 15 year loan will usually be the best deal, as long as you can afford the monthly payments. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.
5/1 variable rate mortgages
A 5/1 ARM has an average rate of 3.11%, up 4 basis points from a week ago. You will typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable rate mortgage during the first five years of the mortgage. But as the rate changes with the market rate, you could end up paying more after this period, as described in your loan terms. For this reason, an adjustable rate mortgage can be a good option if you plan to sell or refinance your home before rates change. Otherwise, changes in the market could dramatically increase your interest rate.
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 country:
Current average mortgage interest rates
|Type of loan||Interest rate||A week ago||Switch|
|30-year fixed rate||3.09%||3.05%||+0.04|
|15-year fixed rate||2.37%||2.35%||+0.02|
|30-year jumbo mortgage rate||3.15%||3.15%||NC|
|30-year mortgage refinancing rate||3.15%||3.09%||+0.06|
Updated May 19, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or by using an online calculator. When looking for mortgage rates, think about your goals and your current financial situation. Specific mortgage interest rates will vary based on factors such as credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of these 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 factor in additional factors like fees, closing costs, taxes, and discount points as well. Be sure to shop around with multiple lenders – such as credit unions and online lenders in addition to local and state banks – to get a mortgage that’s right for you.
What is a good loan term?
An important thing to consider when choosing a mortgage loan is the term of the loan or the payment schedule. The most commonly offered loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages.
Mortgages are divided into fixed rate and variable rate mortgages. The interest rates on a fixed rate mortgage are stable throughout the life of the loan. For variable rate mortgages, interest rates are stable for a number of years (typically five, seven, or 10 years) and then the rate changes each year based on the market interest rate.
When deciding between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to stay in your home. For those who are planning to live long term in a new home, fixed rate mortgages may be the best option. While variable rate mortgages can sometimes offer lower interest rates initially, fixed rate mortgages are more stable over time. However, you might 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 depends on your situation and your goals, so be sure to consider what’s important to you when choosing a mortgage.