Current Mortgage Rates — July 2, 2021: Rates Are Mixed


Average mortgage rates are mixed today, with a couple trending up, one staying the same, and one trending down. If you are considering purchasing a home, it’s a good idea to keep tabs on average mortgage rates to get an idea of what your home loan might cost you.

Here’s what they look like on Friday, July 2:

Data source: The Ascent’s national mortgage interest rate tracking.

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30-year mortgage rates

The average 30-year mortgage rate today is 3.171%, unchanged from yesterday’s average. At today’s average rate, you’d pay $431 per month in principal and interest per $100,000 borrowed. Total interest costs would add up to $55,118 per $100,000 borrowed over the life of the loan.

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20-year mortgage rates

The average 20-year mortgage rate today is 2.954%, up 0.027% from yesterday’s average of 2.927%. A loan at today’s average rate would cost you $552 per month in principal and interest for each $100,000 you borrow. For each $100,000 you borrow at today’s average rate, total interest costs would add up to $32,551.

This loan will save you money over time compared with the 30-year fixed-rate mortgage. You’ll benefit from a reduced interest rate and a shorter payoff timeline, both of which make your total costs much lower. However, each monthly payment will need to be higher to pay off your loan on schedule.

15-year mortgage rates

The average 15-year mortgage rate today is 2.451%, down 0.011% from yesterday’s average of 2.462%. At today’s average rate, the monthly principal and interest payment would add up to $664 per $100,000 in mortgage debt. The total costs of interest would add up to $19,607 per $100,000 borrowed at today’s average rate.

For borrowers looking for the lowest interest rate and lowest total loan cost, the 15-year loan is the best option. However, it’s important to factor in the considerably higher monthly payments that you will need to make in order to be free of your mortgage debt in 15 years.

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5/1 ARMs

The average 5/1 ARM rate is 2.975%, up 0.008% from yesterday’s average of 2.967%. Although this rate is below the average rate on a 30-year fixed-rate loan, it’s not guaranteed to last for the life of the loan. After five years it can change once annually, and might adjust upward. That would make both monthly payments and total costs higher.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a specified period of time — usually 30 days, but you may be able to secure your rate for up to 60 days. You’ll generally pay a fee to lock in your mortgage rate, but that way, you’re protected in case rates climb between now and when you actually close on your mortgage.

If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today’s rates — especially since they’re so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today’s rates are still quite low, we don’t know if rates will go up or down over the next few months. As such, it pays to:

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days
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To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.

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