Mortgage rates for March 26, 2021: Rates recede – CNET

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Some mortgage rates fell today. 15-year fixed and 30-year fixed mortgage rates both trailed off. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, was also down. Mortgage interest rates are never set in stone, but interest rates are at historic lows. If you’re looking to secure a fixed rate, now is an excellent time to buy a house. Before you buy a home, remember to consider your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.

Check out mortgage rates that meet your distinct needs

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 3.23%, which is a decrease of 9 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one — but often 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 2.47%, which is a decrease of 5 basis points from seven days 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 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 3.24%, a downtick of 11 basis points from seven days ago. With an ARM mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, 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. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage might be a good option. Otherwise, changes in the market means your interest rate may be much higher once the rate adjusts.

Mortgage rate trends

We use data 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 across the US:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 3.23% 3.32% -0.09
15-year fixed 2.47% 2.52% -0.05
30-year jumbo mortgage rate 3.14% 3.12% +0.02
30-year mortgage refinance rate 3.31% 3.43% -0.12

Rates as of March 26, 2021.

How to shop for the best mortgage rate

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. Things that affect what mortgage interest rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Aside from the mortgage interest rate, factors including closing costs, fees, discount points and taxes might also factor into the cost of your house. Make sure you speak with multiple lenders — like local and national banks, credit unions and online lenders — and comparison shop to find the best 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 loan 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. The interest rates in a fixed-rate mortgage are fixed 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 changes annually based on the current interest rate in the market. 

One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home. Fixed-rate mortgages might be a better fit for people who plan on living in your new home for quite some time. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages can sometimes offer lower interest rates upfront. If you don’t have plans to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage could give you a better deal. The “best” loan term all depends on your specific situation and goals, so be sure to take into consideration what’s important to you when choosing a mortgage.

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