Mortgage interest rates today for March 24, 2021: Rates move higher – CNET

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A variety of significant mortgage rates inched up today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both grew. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also increased. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. If you plan to finance a house, now might be an excellent time to secure a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before buying a home, and talk to multiple lenders to find a lender who can best meet your needs.

Take a look at mortgage rates for different types of loan

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.34%, which is a growth of 10 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) 30-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will often have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. 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 2.54%, which is an increase of 6 basis points from seven days ago. You’ll definitely have a higher 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 typically 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 adjustable-rate mortgage has an average rate of 3.37%, an increase of 10 basis points from the same time last week. For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But changes in the market could cause your interest rate to increase after that time, as detailed in the terms of your loan. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. If not, changes in the market could significantly increase your interest rate.

Mortgage Rate Trends

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates
Product Rate Last week Change
30-year fixed 3.34% 3.24% +0.10
15-year fixed 2.54% 2.48% +0.06
30-year jumbo mortgage rate 3.10% 3.12% -0.02
30-year mortgage refinance rate 3.41% 3.34% +0.07

Rates as of March 24, 2021.

How to find the best mortgage rates

When you are ready to apply for a loan, you can connect with a local mortgage broker or search online. When researching home mortgage rates, take into account your goals and current financial situation. 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. 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 additional factors such as fees, closing costs, taxes and discount points. Be sure to talk to a variety of lenders — such as local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage 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 loan 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 set for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate changes annually based on the market interest rate. When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to live in your house. If you plan on living long-term in their new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages may offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However you may get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a few years. The “best” loan term all all depends on your own situation and goals, so be sure to take into consideration what’s important to you when choosing a mortgage.

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