Today’s Mortgage Rates, January 5, 2021

Multiple closely watched mortgage rates receded today. The average rates on 30-year fixed and 15-year fixed mortgages both decreased. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also receded.

Today’s mortgage interest rates

Loan term	Today’s Rate	Last week	Change
30-year mortgage rate	2.85%	2.88%	-0.03
15-year mortgage rate	2.30%	2.37%	-0.07
30-year jumbo mortgage rate	2.89%	2.90%	-0.01
30-year mortgage refinance rate	2.89%	2.92%	-0.03

Rates accurate as of January 5, 2021.

Data source: Bankrate overnight averages data

Mortgage rates change daily, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just make sure you’ve looked around for the best rate first.

See mortgage rates for a variety of rate terms.

30-year fixed-rate mortgages

The average rate for a 30-year fixed mortgage is 2.85 percent, down 3 basis points over the last seven days. Last month on the 5th, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.

At the current average rate, you’ll pay a combined $413.56 per month in principal and interest for every $100,000 you borrow. That represents a decline of $1.60 over what it would have been last week.

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

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 2.30 percent, down 7 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $657 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

5/1 Adjustable Rate Mortgage Rates

The average rate on a 5/1 adjustable rate mortgageis 2.96 percent, falling 7 basis points over the last 7 days.

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

Monthly payments on a 5/1 ARM at 2.96 percent would cost about $419 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgages

is 2.89 percent, down 1 basis point over the last seven days. Last month on the 5th, the average rate for jumbo mortgages was higher, at 2.94 percent.

At today’s average jumbo rate, you’ll pay principal and interest of $415.69 for every $100k you borrow. That’s $0.54 lower, compared with last week.

To follow how rates change day-to-day, check out Bankrate’s daily rates page.

How to find the best rates

Interest rates can differ widely based on overall market forces, the size of the loan, your location, your financial situation and how eager lenders are to get your business. Keep in mind that the rates we quote 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 loan to shop around and compare 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 stay up to date on current 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:

• Refi rates today
• Current 30-year mortgage rates

Shopping for the right mortgage lender?

Methodology: The rates you see above are Bankrate.com 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. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com 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.