Mortgage and refinance rates have dropped since last Friday and since this time last month.
If you're ready to lock in a rate, you may want a fixed-rate mortgage rather than an adjustable rate. Fixed rates are starting lower than adjustable rates, and you'll pay the same low rate for the entire life of your loan. With an ARM, your rate would probably increase down the road.
Mortgage rates should remain low for at least a few months, so you don't need to hurry to buy to take advantage of low rates if you aren't ready.
But if you know you want to buy soon, you should probably start the process of applying for preapproval and locking in a rate. According to a study by Redfin, over half of homes in the US are selling in two weeks or less right now. So once you're ready to buy, you'll want to be able to act fast.
Mortgage rates on Friday, May 7, 2021| Mortgage type | Average rate today |
| 15-year fixed | 2.45% |
| 30-year fixed | 3.31% |
| 7/1 ARM | 4.20% |
| 10/1 ARM | 4.09% |
| 30-year FHA | 2.87% |
| VA mortgage loan | 2.70% |
Conventional rates from Money.com; government-backed rates from RedVentures.
Learn more and get offers from multiple lenders »The lowest mortgage rate today is the 15-year fixed-rate mortgage, which is 2.45%.
Rates for conventional mortgages (which might be what you think of "regular mortgages") are already low right now. But mortgages backed by the FHA and VA usually pay even lower rates, depending on which term length you choose. Government-backed mortgages are great options if you're eligible to apply.
Refinance rates on Friday, May 7, 2021| Mortgage type | Average rate today |
| 15-year fixed | 2.65% |
| 30-year fixed | 3.66% |
| 7/1 ARM | 4.38% |
| 10/1 ARM | 4.62% |
| 30-year FHA | 3.82% |
| VA mortgage loan | 2.68% |
Conventional rates from Money.com; government-backed rates from RedVentures.
Compare offers from refinancing lenders »If you're comfortable making higher monthly payments, you may want to refinance into a 15-year fixed-rate mortgage rather than a 30-year one. Today's 15-year refinance rate is over 1% lower than the 30-year refinance rate.
How to get a good mortgage rateMortgage and refinance rates are low today, especially fixed rates. It could be a good day to lock in a low rate.
You might not need to hurry if you aren't prepared to buy or refinance yet, though. Rates will probably stay relatively low for months. You have time to improve your finances and get a better interest rate. Consider the following steps:
- Boost your credit score by making payments on all your bill payments on time. You could also pay down debts or let your credit age.
- Put down more for a down payment. The minimum amount you'll need for your down payment will be contingent on the type of mortgage you want. The bigger your down payment, the more probable your lender will give you a better interest rate.
- Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. To better your ratio, pay down debts or look for ways to raise your income.
You can secure a low rate today if your finances are in good shape, but you don't need to rush to get a mortgage or refinance if you're not ready.
Mortgage and refinance rates trendsMortgage rate trends| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 2.45% | 2.52% | 2.60% |
| 30-year fixed | 3.31% | 3.42% | 3.54% |
| 7/1 ARM | 4.20% | 4.32% | 4.50% |
| 10/1 ARM | 4.09% | 4.18% | 4.85% |
Mortgage rates have gone down since last Friday, and even more significantly since this time last month.
Refinance rate trends| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 2.65% | 2.71% | 2.90% |
| 30-year fixed | 3.66% | 3.81% | 3.85% |
| 7/1 ARM | 4.38% | 4.52% | 4.79% |
| 10/1 ARM | 4.62% | 4.80% | 5.10% |
Refinance rates have decreased across the board since last Friday. Rates are also down since April 7.
15-year fixed mortgage ratesIf you get a 15-year fixed mortgage, you'll pay off your mortgage over 15 years, and your interest rate will remain the same the entire time.
You'll make higher monthly payments with a 15-year term than a longer term because you're paying off the same loan principal in fewer years.
However, a 15-year term will cost you less than a 30-year term. You'll get a lower interest rate and you'll pay off your mortgage in a shorter amount of time.
30-year fixed mortgage ratesWith a 30-year fixed mortgage, you'll pay the same interest rate over a 30-year loan term.
You'll pay more in interest with a 30-year fixed mortgage than a 15-year fixed mortgage because you're paying a higher interest rate for an extended period.
Fortunately, your monthly payments will be smaller with a 30-year term than a 15-year term because you're dividing up your payments over more years.
ARMsA fixed-rate mortgage sets your rate for the entire time you're paying off your mortgage. But with an adjustable-rate mortgage, you'll pay a constant rate for a predetermined amount of time. After that, your rate will vary periodically. A 10/1 ARM sets your rate for a decade, then your rate will fluctuate yearly.
Although ARM rates are at all-time lows now, you may still want to get a fixed-rate mortgage. The 30-year fixed rates are lower than ARM rates, so it could be an excellent opportunity to secure a low rate with a fixed mortgage. This way, you won't need to worry about your rate increasing in the future with an ARM.
Some lenders are still offering competitive ARM rates, though, so ask your lender about details if you're interested in an adjustable rate.
Government-backed mortgagesWe're also providing rates for FHA and VA home loans, two kinds of government-backed mortgages.
Government mortgages are backed by government agencies. The government pays the lender if you fail to make mortgage payments.
Government-backed home loans are less risky than conventional mortgages, so lenders have more lenient requirements for your credit score, debt-to-income ratio, or down payment. Government mortgages also come with lower interest rates. These mortgages can be great deals if you qualify. Here are your options:
- FHA mortgage: FHA loans are mostly for people with lower credit scores. But these mortgages aren't limited to a certain type of person, like VA and USDA loans.
- VA mortgage: You may be eligible if you're an active military member or veteran.
- USDA mortgage: You could qualify if you live in a rural area and fall under a certain income limit.
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.
Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.
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