Mortgage Interest Rates Today for October 7, 2021: Rates Go Down


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A variety of major mortgage rates have fallen today. Average interest rates for 15-year fixed and 30-year mortgages have declined. We have also seen a decrease in the average rate for 5/1 adjustable rate mortgages. Mortgage interest rates are never set in stone, but interest rates are at their lowest in years. For this reason, now is the perfect time for potential buyers to lock in to a fixed rate. Before buying a home, don’t forget to think about your personal needs and financial situation, and talk to several lenders to find the one that’s right for you.

30-year fixed rate mortgages

The average interest rate for a 30-year standard fixed mortgage is 3.13%, which is a decrease of 5 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most commonly used loan term. A 30 year fixed rate mortgage will often have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. 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 2.39%, which is a decrease of 6 basis points from the same period last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15-year loan will usually be the best deal, as long as you can afford the monthly payments. 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 ARM has an average rate of 3.14%, down 7 basis points from seven days ago. With an adjustable rate mortgage, you will usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But as the rate changes with the market rate, you could end up paying more after this period, as described in your loan terms. For borrowers who plan to sell or refinance their home before rates change, an adjustable rate mortgage may be a good option. 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 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:

Mortgage interest rates today

Prices exact as of October 7, 2021.

How to find personalized mortgage rates

To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. When looking at mortgage rates, consider your goals and your current financial situation. Specific mortgage interest 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 larger down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. Besides the interest rate, factors such as closing costs, fees, points of call, and taxes can also affect the cost of your home. You should speak with a variety of lenders – such as local and state banks, credit unions, and online lenders – and a comparator to find the best mortgage for you.

How does the term of the loan affect my mortgage?

An important consideration when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered loan terms 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 variable rate mortgages. For fixed rate mortgages, the interest rates are the same throughout the life of the loan. For variable rate mortgages, interest rates are set for a number of years (most often five, seven or 10 years), then the rate adjusts annually based on the market rate.

When deciding between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to live in your home. Fixed rate mortgages might be better suited for people who plan to stay in a home for a while. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages may offer lower interest rates initially. 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. Generally, there is no better loan term; it all depends on your goals and your current financial situation. Make sure you do your research and think about your own priorities when choosing a mortgage.


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