Today’s mortgage rates for May 10, 2021: Rates ease



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Some closely followed mortgage rates moved down today. Fifteen-year fixed and 30-year fixed mortgage rates both dropped off. We also saw a decrease in the average rate of 5/1 adjustable-rate mortgages. Although mortgage rates fluctuate, they’re lower than they’ve been in years. If you’re looking to secure a fixed rate, now is a good time to buy a home. Before you purchase a home, remember to consider your personal needs and financial situation, and compare offers from various lenders to find the right one for you.

Find current mortgage rates for today

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.06%, which is a decline of 5 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.34%, which is a decrease of 5 basis points from seven days ago. You’ll definitely have a larger 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. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.07%, a slide of 6 basis points from seven days ago. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. However, since the rate changes with the market rate, you could end up paying more after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage might be a good option. If not, shifts in the market might significantly increase your interest rate.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders across the country:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 3.06% 3.11% -0.05
15-year fixed 2.34% 2.39% -0.05
30-year jumbo mortgage rate 3.16% 3.26% -0.10
30-year mortgage refinance rate 3.12% 3.17% -0.05

Rates as of May 10, 2021.

How to find personalized mortgage rates

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. When looking into home mortgage rates, think about your goals and current finances. Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home be sure to also consider other factors such as fees, closing costs, taxes and discount points. You should shop around with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s the best fit for you.

How does the loan term impact my mortgage?

One important factor to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered 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 adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the current interest rate in the market.

When choosing between a fixed-rate and adjustable-rate mortgage, you should take into consideration the length of time you plan to live in your house. For people who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. However you could get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a few years. There is no “best” loan term as a rule of thumb; it all depends on your goals and your current financial situation. It’s important to do your research and know what you want when choosing a mortgage.



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