Mortgage interest rates as of November 25, 2021: rates fade
A handful of major mortgage rates have fallen today. Both 15-year and 30-year fixed mortgage rates have tended to decline. We have also noticed a drop in the average rate for mortgage loans with a 5/1 adjustable rate. Although mortgage rates are constantly changing, they are at an all time low. If you are considering financing a home, this might be a great time to lock in a fixed rate. But as always, be sure to think about your personal goals and circumstances first before buying a home, and shop around to find a lender who can best meet your needs.
30-year fixed rate mortgages
The 30-year average fixed mortgage interest rate is 3.14%, down 5 basis points from seven days ago. (One basis point equals 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will generally have a smaller monthly payment than a 15 year mortgage, but often a higher interest rate. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.
15-year fixed rate mortgages
The average rate for a 15-year fixed-rate mortgage is 2.44%, which is 2 basis points down from a week ago. You will likely 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. However, if you can afford the monthly payments, a 15-year loan has several advantages. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.
5/1 adjustable rate mortgages
A 5/1 adjustable rate mortgage has an average rate of 3.13%, down 5 basis points from seven days ago. For the first five years, you will typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30 year fixed mortgage. But you could end up paying more after this period, depending on the terms of your loan and how the rate changes with the market rate. If you plan to sell or refinance your home before rates change, an adjustable rate mortgage may be right for you. But if it doesn’t, you might be forced to pay a much higher interest rate if market rates change.
Mortgage rate trends
We use information 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 country:
Current average mortgage interest rates
|Type of loan||Interest rate||A week ago||Switch|
|30-year fixed rate||3.14%||3.19%||-0.05|
|15-year fixed rate||2.44%||2.46%||-0.02|
|Giant 30-year mortgage rate||2.76%||2.80%||-0.04|
|30-year mortgage refinancing rate||3.13%||3.16%||-0.03|
Updated November 25, 2021.
How to find the best mortgage rates
To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. Be sure to take your current finances and goals into account when looking for a mortgage. Specific mortgage rates will vary based on factors such as credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Having a good credit score, a higher down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – be sure to consider other costs like fees, closing costs, taxes, and points of call as well. Be sure to talk to a variety of lenders – including local and state banks, credit unions, and online lenders – and a comparator to find the best loan for you.
What is the best loan term?
When choosing a mortgage, remember to consider the length of the loan or the repayment schedule. The most common loan terms are 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and variable rate mortgages. The interest rates for a fixed rate mortgage are set for the term of the loan. Unlike a fixed rate mortgage, the interest rates on a variable rate mortgage are only fixed for a certain term (most often five, seven or 10 years). After that, the rate adjusts annually based on the current market interest rate.
One factor to consider when deciding between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to stay in your home. Fixed rate mortgages may be more suitable for those who plan to live in a house for a while. While variable rate mortgages may offer lower interest rates initially, fixed rate mortgages are more stable over the long term. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage may give you a better deal. The best loan term is entirely up to your circumstances and goals, so be sure to think about what’s important to you when choosing a mortgage.