Today’s Mortgage Rates for September 29, 2021: Rates Go Up



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A handful of major mortgage rates have gone up today. Both 15-year and 30-year fixed mortgage rates have climbed. We also saw an inflation in the average rate of adjustable 5/1 mortgage loans. Although mortgage rates are constantly changing, they are lower than they have been in years. For this reason, it is currently the optimum time for potential home buyers to obtain a fixed rate. Before buying a home, don’t forget to take your personal needs and financial situation into account, and research multiple lenders to find the right one for you.

30-year fixed rate mortgages

The 30-year average fixed mortgage interest rate is 3.13%, up 8 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 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 2.40%, which is an increase 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. However, if you can afford the monthly payments, a 15-year loan has several advantages. This usually comes down to being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest over the long term.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.15%, an increase of 8 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 moves with the market rate. 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 could have to pay a significantly 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 rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates

Product Rate Last week Switch
30 years fixed 3.13% 3.05% +0.08
15 years fixed 2.40% 2.34% +0.06
Giant 30-year mortgage rate 2.79% 2.79% NC
30-year mortgage refinancing rate 3.12% 3.03% +0.09

Prices as of September 29, 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. Make sure you think about your current financial situation and your goals when looking for a mortgage. A range of factors, including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio, will all affect your mortgage interest rate. 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, other factors including closing costs, fees, points of call, and taxes may also be factored into the cost of your home. Be sure to talk to multiple lenders – for example, local and state banks, credit unions, and online lenders – and a comparator to find the best mortgage for you.

What is a good loan term?

An important factor to consider when choosing a mortgage loan is the length of the loan or the payment 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 adjustable rate mortgages. The interest rates for a fixed rate mortgage are the same throughout the life of the loan. Unlike a fixed rate mortgage, the interest rates for a variable rate mortgage are only the same for a certain period of time (most often five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

One 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. For those who plan to stay in a new home for the long term, fixed rate mortgages may be the best option. While variable rate mortgages may have 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 depends on the situation and the person’s goals, so be sure to consider what’s important to you when choosing a mortgage.


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