money 30-Year, 20-Year Mortgage Rates Fall Today After Rising on Friday
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Based on data compiled by Credible, mortgage rates dropped for longer terms and remained unchanged for shorter terms since last Friday.
30-year fixed mortgage rates: 3.125%, down from 3.250%, -0.125
20-year fixed mortgage rates: 2.750%, down from 2.875%, -0.125
15-year fixed mortgage rates: 2.375%, unchanged
10-year fixed mortgage rates: 2.250%, unchanged
Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
Rates for a 20-year mortgage continue to stand out as a great deal — they’ve remained in bargain territory for weeks. Homebuyers may want to lock in a mortgage with this term to enjoy a lower monthly payment and save money on interest. Similarly, 15-year rates have been reliably steady for the past week, holding at 2.375%. Meanwhile, 30-year rates have been more volatile, fluctuating above or below 3% for the last 15 days, and 10-year rates have been flitting between 2.125% and 2.250% for most of October.
Browse rates from multiple lenders so you can make an informed decision about your home loan.
Current mortgage rates
This is the fourth day that 30-year mortgage rates have been higher than 3%. The average mortgage interest rate across all repayment terms is 2.625%.
Current 30-year mortgage rates
The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is down from last Friday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.
Current 20-year mortgage rates
The current interest rate for a 20-year fixed-rate mortgage is 2.750%. This is down from last Friday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.
Current 15-year mortgage rates
The current interest rate for a 15-year fixed-rate mortgage is 2.375%. This is the same as last Friday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable.
Current 10-year mortgage rates
The current interest rate for a 10-year fixed-rate mortgage is 2.250%. This is the same as last Friday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.
Looking at today’s mortgage refinance rates
Mortgage refinance rates mirror purchase rates, with longer terms dropping while shorter terms held firm. If you’re considering refinancing an existing home, check out what refinance rates look like:
30-year fixed refinance rates: 3.125%, down from 3.250%, -0.125
20-year fixed refinance rates: 2.750%, down from 2.875%, -0.125
15-year fixed refinance rates: 2.375%, unchanged
10-year fixed refinance rates: 2.250%, unchanged
Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
How mortgage rates have changed
Today’s mortgage rates are up for the longest and shortest terms compared to the same time last week.
30-year fixed mortgage rates: 3.125%, up from 2.990% last week, +0.135
20-year fixed mortgage rates: 2.750%, the same as last week
15-year fixed mortgage rates: 2.375%, the same as last week
10-year fixed mortgage rates: 2.250%, up from 2.125% last week, +0.125
Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
Why mortgage rates change
Mortgage rates can fluctuate on a daily basis — as they’ve done for much of 2021. Many factors influence the movement of mortgage interest rates, including (but not limited to) …
Actions the Federal Reserve takes on short-term interest rates
Current home sales and housing starts (the number of new houses that begin being built in a month)
Inflation
Unemployment
Corporate earnings
Because mortgage rates are so volatile, it can be a good idea to get pre-approved and lock in a low mortgage rate as soon as possible when you’re shopping for a house.
Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.
How to get the best mortgage rates
While market factors influence today’s mortgage rates, factors unique to you and your situation generally influence the interest rate you may qualify for. The Consumer Financial Protection Bureau points to factors that affect your interest rate.
Your credit scores — Generally, people with higher credit scores are more likely to qualify for lower interest rates.
Location of the home you’re buying — Interest rates can vary depending on the state you’re buying in.
The price of the house — If your loan is larger or smaller than average, you may face higher interest rates because the lender might perceive the loan as riskier.
Your down payment amount — The more you’re able to put down, the greater the likelihood you’ll qualify for a lower interest rate. And putting down less than 20% usually means you’ll have to pay private mortgage insurance, which increases the total cost of a loan.
The repayment term — Shorter terms — 10 or 15 years — typically have lower interest rates because the lender is risking its money for less time than if you take out a 30-year loan.
Type of interest rate — Mortgage interest rates can be variable or fixed. Generally, variable rates start out lower than fixed rates, but can increase significantly later on.
Type of loan — Conventional loans usually have the lowest interest rates, but you may need good credit and income to qualify for one. FHA, USDA, and VA loans may have less strict credit and income requirements, but can come with higher interest rates.
If you can influence at least some of those factors — such as improving your credit score or saving for a down payment of 20% or more — you may be able to improve your chance of getting a lower interest rate.
And of course, comparison shopping is an important way to find a mortgage that’s right for you. To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:
• Check out mortgage refinance rates
• Compare home purchase rates
You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today.
Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
More from Credible:
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.
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