Today’s Mortgage Rates, December 31, 2020

Several closely watched mortgage rates fell today. The average for a 30-year fixed-rate mortgage dropped, but the average rate on a 15-year fixed held firm. Meanwhile, the average rate on 5/1 adjustable-rate mortgages receded.


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Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 2.88% 2.92% -0.04
15-year fixed rate 2.38% 2.38% N/C
30-year fixed jumbo rate 2.90% 2.94% -0.04
30-year fixed refinance rate 2.93% 2.97% -0.04

Rates last updated on December 31, 2020. These rates are averages based on the assumptions shown here. Actual rates on-site may vary.

Data source: Bankrate overnight averages data

Mortgage rates are in a constant state of flux, but they remain much lower overall than they were before the Great Recession. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just be sure to shop around.

View mortgage rates for a variety of rate terms.

30-year mortgage rates today

The average rate you’ll pay for a 30-year fixed mortgage is 2.88 percent, a decrease of 4 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 2.91 percent.

At the current average rate, you’ll pay principal and interest of $415.16 for every $100,000 you borrow. That’s $2.14 lower, compared with last week.

You can use Bankrate’s mortgage calculator to figure out your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year mortgages

The average 15-year fixed-mortgage rate is 2.38 percent, unchanged over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $661 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

Gallery: The Average Retirement Age in Every State (GOBankingRates)

a person standing in front of a body of water: “With the passage of the CARES Act and HEROES Act, Congress recognized that retirement savings is one of the more readily available assets,” Parks said. “Restrictions around accessing those assets exist to protect your savings for the future. Because of the extraordinary circumstances surrounding the pandemic, the government made temporary provisions making it easier for people to tap into their retirement accounts. These regulations were not meant to change what these retirement accounts were intended for. This was a temporary change of policy for an emergency situation.” “Moving forward, we will likely see some more meaningful legislation surrounding retirement savings,” he continued. “It is not sustainable to dip into our long-term savings every time there is a short-term crisis.”

5/1 Adjustable Rate Mortgage Rates

The average rate on a 5/1 ARM is 3.01 percent, sliding 5 basis points over the last week.

These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.01 percent would cost about $422 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Current jumbo mortgage rates

The average rate for the benchmark jumbo mortgage is 2.90 percent, down 4 basis points from a week ago. This time a month ago, jumbo mortgages’ average rate was greater than 2.90, at 2.94 percent.

At today’s average jumbo rate, you’ll pay principal and interest of $416.23 for every $100k you borrow. That’s a decline of $2.14 from last week.

To stay up to date with daily mortgage rates, check out our daily rates news hub.

How to find the best rates

Mortgage rates can differ largely based on overall market forces, the size of the loan, your location, your financial situation and how motivated lenders are to get your business. Remember that the rates we post are market averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.

It’s key when you’re looking for a mortgage to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.

Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain current on today’s rates. If you’re not happy with the results there, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.

Read about other loan terms:

  • Current refinance rates
  • 30 year mortgage rates today

Searching for the right lender?

Methodology: The rates you see above are Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “ Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

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