After two days of decline, the average mortgage rate on a 30-year fixed-rate loan fell to 3.603%. That’s an increase of 0.148 percentage points from yesterday’s average. Almost all other loan categories also saw their rates increase, with the 30-year refinance loan averaging 3.802%.

Although rates have been a bit volatile recently, they remain very low compared to previous years. Low rates offer those with strong credit the opportunity to take advantage of a competitive interest rate and affordable monthly payments on a new mortgage or when refinancing their current home loan.

• The last rate on a 30 year fixed rate mortgage is 3.603%. ??
• The last rate on a 15 year fixed rate mortgage is 2.618%. ??
• The latest rate on a 5/1 ARM is 2.21%. ??
• The latest rate on a 7/1 ARM is 3.441%. ??
• The latest rate on a 10/1 ARM is 3.434%. ??

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score – roughly the national average – could pay if they applied for a home loan right now. Daily rates are based on the average rate of 8,000 lenders offered to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower because they measure the rates offered to borrowers with a higher credit rating.

30-year fixed rate mortgage rates today

• The 30-year rate is 3.603%.
• It’s a day infold by 0.148 percentage points.
• It’s a month infold by 0.137 percentage points.

The most common type of home loan is the 30-year fixed rate home loan. The borrowers are attracted by the stable interest rate and the monthly payments. Another advantage of the long payback is that the monthly payments will be relatively low. The downside is that the interest rate is usually higher than the rate on a shorter term loan, making it more expensive in the long term.

15 years fixed rate mortgage rates today

• The 15-year rate is 2.618%.
• It’s a day infold by 0.072 percentage point.
• It’s a month infold by 0.013 percentage points.

Some borrowers prefer the shorter term and lower interest rate of a 15 year fixed rate mortgage. Fifteen-year borrowers not only pay off the loan in half the time, but they’ll also spend less money on the loan overall. However, the short term also means that the monthly payments will be higher than a 30-year equivalent loan, which may not suit everyone’s budget.

Variable rate mortgage rates today

• The latest rate on a 5/1 ARM is 2.21%. ??
• The latest rate on a 7/1 ARM is 3.441%. ??
• The latest rate on a 10/1 ARM is 3.434%. ??

A variable rate mortgage will have a fixed interest rate for a number of years before it begins to adjust to market conditions and periodically reset. The rate on a 5/1 ARM, for example, will be fixed for five years and then change every year. This type of loan can be a good option if you don’t plan to stay in the home beyond the fixed rate period as the interest rate is usually very low initially. Once it becomes adjustable, however, the rate and monthly payments could increase dramatically.

Current mortgage rates: VA, FHA and jumbo loan rates

The average rates for FHA, VA and jumbo loans are:

• The rate on a 30-year FHA mortgage is 3.353%. ??
• The rate for a 30-year VA mortgage is 3.427%. ??
• The rate for a 30-year jumbo mortgage is 3.636%. ??

Current mortgage refinancing rates

The average refinancing rates for 30-year loans, 15-year loans and ARMs are:

• The refinance rate on a 30 year fixed rate refinance is 3.802%. ??
• The refinance rate on a 15 year fixed rate refinance is 2.735%. ??
• The refinancing rate on an ARM 5/1 is 2.491%. ??
• The refinancing rate on an ARM 7/1 is 2.899%. ??
• The refinancing rate on an ARM 10/1 is 4.01%. ??

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Average mortgage refinancing rates

Data based on US mortgages closed on December 1, 2021

Type of loan	1st December	Last week	Switch
Conventional Fixed 15 Years	2.74%	2.79%	0.05%
Conventional Fixed 30 Years	3.8%	3.79%	0.01%
ARM rate 7/1	2.9%	3.31%	0.41%
ARM rate 10/1	4.01%	4.11%	0.1%

Your actual rate may vary

Where Are Mortgage Rates Going This Year?

Mortgage rates fell through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people have bought homes that they might not have been able to afford if the rates were higher.

In January 2021, rates briefly fell to all-time low levels, but tended to increase throughout the month and into February.

Looking ahead, experts believe interest rates will rise further in 2021, but modestly. Factors that could influence the rates include how quickly COVID-19 vaccines are distributed and when lawmakers can agree on another cost-effective relief package. More vaccinations and government stimulus could lead to improved economic conditions, which would increase rates.

Although mortgage rates are likely to rise this year, experts say the increase will not happen overnight, and it will not be a dramatic jump. Rates are expected to stay near their historically low levels throughout the first half of the year, rising slightly later in the year. Even with rates rising, this will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

• The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to move money through the economy by lowering the Federal Fund’s short-term interest rate between 0% and 0.25%, which is as low as they go. The central bank has also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but started curtailing those purchases in November.
• The 10-year Treasury note. Mortgage rates move at the same pace as the yields on 10-year government treasury bills. Yields fell below 1% for the first time in March 2020 and have risen since then. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
• The economy in the broad sense. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached record levels early last year and have yet to recover. GDP has also been affected, and although it has rebounded somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. The borrowers with the highest credit scores will get the best rates, so it’s essential to check your credit report before you begin the home search process. Taking action to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually results in a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the house.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who is offering the lowest interest rate. Also consider the different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

Also. take the time to learn about the different types of loans. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a conventional 30-year mortgage. Compare the costs of everyone to see which one best suits your needs and your financial situation. Government loans – such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you find the right rate, the right loan product, and the lender will help ensure that your mortgage rate does not increase until the loan closes.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for which the most recent rates are available. Today we’re posting the rates for Wednesday, December 1, 2021. Our rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people with a 20% deposit and include discount points.

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