Here are today’s mortgage rates on May 4, 2021: Rates are going up


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A variety of significant mortgage rates have risen today. Average interest rates for both fixed mortgages with a term of 15 years and mortgages with a term of 30 years both fell higher. At the same time, the average rates for 5/1 floating-rate mortgages also went up. Mortgage interest rates have never been set in stone, but interest rates are the lowest in years. For those who want to secure a flat rate, now is the optimal time to buy a home. But as always, before buying a home, consider your personal goals and circumstances and shop around to find a lender who can best meet your needs.


View mortgage rates that meet your specific needs

Fixed-rate mortgages of 30 years

The average interest rate for a standard mortgage with a term of 30 years is 3.09%, a growth of 1 basis point compared to a week ago. (One basis point equals 0.01%.) Fixed mortgages with a term of 30 years are the most common term. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year mortgage, but often a higher interest rate. You won’t be able to pay off your home as quickly and you will pay more interest over time, but a 30-year fixed mortgage is a good option if you want to minimize your monthly payment.

Fixed-rate mortgages of 15 years

The average rate for a mortgage with a term of 15 years is 2.38%, an increase of 1 basis point compared to a week ago. With a mortgage with a fixed term of 15 years, you certainly have a higher monthly amount than with a fixed mortgage with a term of 30 years, even if the interest and the loan amount are the same. However, as long as you can afford the monthly payments, a 15-year loan has several benefits. You will likely get a lower interest rate and pay less interest overall because you will pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average interest rate of 3.11%, an increase of 3 basis points from seven days ago. With an ARM mortgage, you usually get a lower interest rate for the first five years than a fixed mortgage with a term of 30 years. However, changes in the market can cause your interest to rise after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their home before interest rates change, an ARM can be a good option. If not, changes in the market can significantly increase your interest rate.

Trends in mortgage interest

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

Average mortgage interest rates

Product Rate it Last week Change
Fixed for 30 years 3.09% 3.08% +0.01
Fixed for 15 years 2.38% 2.37% +0.01
30-year jumbo mortgage rate 3.26% 3.26% N / C
30 year mortgage refinance rate 3.14% 3.14% N / C

Rates from May 4, 2021.

How to Find Personalized Mortgage Interest

When you are ready to apply for a loan, you can contact a local mortgage broker or search online. To find the best mortgage, you need to consider your goals and current finances. Specific mortgage interest rates will vary based on factors such as credit score, down payment, debt to income ratio and loan to value ratio. If you have a higher credit score, higher down payment, low DTI, low LTV, or a combination of these factors, you can get a lower interest rate. In addition to mortgage interest, factors such as closing costs, fees, discount points, and taxes can also play a role in the cost of your home. Make sure to talk to multiple lenders – for example, local and state banks, credit unions, and online lenders – and comparison shop to find the best loan for you.

What is the best loan period?

An important thing to keep in mind when choosing a mortgage is the term of the loan or the payment schedule. The most common mortgage terms are 15 years and 30 years, although there are also mortgages with terms of 10, 20 and 40 years. Mortgages are further divided into fixed and variable interest mortgages. For fixed-rate mortgages, the interest is set for the term of the loan. For variable rate mortgages, interest rates are set for a specified number of years (usually five, seven or ten years), after which the interest rate changes annually based on the current interest rate in the market.

One thing to consider when choosing between a fixed and variable rate mortgage is how long you plan to live in your home. If you plan to live in a new home for a long time, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates up front. However, you can get a better deal on a variable rate mortgage if you plan on keeping your home for just a few years. The ‘best’ loan term all depends on your situation and goals, so consider what’s important to you when choosing a mortgage.

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