Mortgage rates as of September 30, 2021: rate hike


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A few major mortgage rates have gone up today. Average interest rates for 15-year fixed and 30-year mortgages have both increased. The average rate for 5/1 adjustable rate mortgages has also increased. While mortgage rates are constantly changing, they are currently at historically low levels. If you are thinking of buying a home, this might be a great time to get a low fixed rate. As always, be sure to consider your personal goals and finances first, and shop around with different lenders to find the best mortgage for your needs.

30-year fixed rate mortgages

The 30-year average fixed mortgage interest rate is 3.18%, which is an increase of 15 basis points from a week 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 often have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. While you will pay more interest over time – you pay off your loan over a longer period – 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-rate mortgage is 2.45%, which is an increase of 15 basis points from a week ago. You will certainly 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. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.21%, an increase of 16 basis points from last week. With an ARM mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, since 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 ARM 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 data collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders in the United States:

Current average mortgage interest rates

Type of loan Interest rate A week ago Switch
30-year fixed rate 3.18% 3.03% +0.15
15-year fixed rate 2.45% 2.30% +0.15
Giant 30-year mortgage rate 2.79% 2.79% NC
30-year mortgage refinancing rate 3.16% 3.00% +0.16

Updated September 30, 2021.

How to shop for the best mortgage rate

When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. In order to find the best mortgage loan, you will need to consider your goals and your overall financial situation. Specific mortgage rates will vary based on factors such as credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Typically, you want a higher credit score, higher down payment, lower DTI, and lower LTV to get a lower interest rate. Besides the interest rate, additional costs including closing costs, fees, points of call, and taxes may also factor into the cost of your home. You should speak with several lenders – such as local and state banks, credit unions, and online lenders – and shop around to find the best mortgage for you.

What is the best loan term?

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 fixed for the term of the loan. For variable rate mortgages, the interest rates are the same for a number of years (typically five, seven, or 10 years) and then the rate adjusts annually based on the market interest rate.

An important factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. Fixed rate mortgages might be better suited if you plan to live in a house for a while. Fixed rate mortgages offer more stability over time than variable rate mortgages, but variable rate mortgages can sometimes 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. 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.


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