Current Mortgage Rates — November 4: Rates Remain Near Record Lows

Mortgage Type Today’s Interest Rate
30-year fixed mortgage 2.879%
20-year fixed mortgage 2.720%
15-year fixed mortgage 2.412%
5/1 ARM 3.369%

30-year mortgage rates

The average 30-year mortgage rate today is 2.879%, up .006% from yesterday’s average rate of 2.873%. At today’s average rate, your monthly principal and interest payments would add up to $415 for each $100,000 borrowed. Over your entire repayment period, you would pay interest of $49,438 per $100,000 in mortgage debt. 

Check out The Ascent’s mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you’d save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.

20-year mortgage rates

The average 20-year mortgage rate today is 2.720%, down .014% from yesterday’s average rate of 2.734%%. For each $100,000 you borrow at today’s average rate, you would pay $541 in principal and interest. Your total interest costs would add up to $29,765 per $100,000 borrowed over the life of the loan. 

You will pay more each month when you have a 20-year loan instead of a 30-year loan due to the fact you have to repay your debt a decade sooner. However, total interest costs are much lower since you are not paying the lender interest for as long a period of time. 

15-year mortgage rates

The average 15-year mortgage rate today is 2.412%, up .007% from yesterday’s average rate of 2.405%. Principal and interest costs would total $663 per $100,000 borrowed each month and your total interest costs over the life of your loan would equal $19,278 per $100,000 borrowed. 

Like with the 20-year loan, your monthly payments on a 15-year loan are higher than on loans with longer terms. Again, that’s because of the shortened repayment timeline. This same accelerated repayment schedule results in much higher monthly payments — especially since you’re taking an additional five years off your repayment time. But your interest savings are far higher.

5/1 ARMs

The average 5/1 ARM rate is 3.369%, up .014% from yesterday’s average rate of 3.355%. The ARM has a higher average starting rate than the 30-year loan. There is no reason to gamble on an adjustable-rate mortgage since your rates could change after five years and chances are good they would adjust upward rather than down since rates are currently at record lows. Instead, you should secure the cheaper fixed-rate loan which will cost you less now and come with more predictable payments over the life of the loan. 

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, though 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 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

Before locking in, you should get rate quotes from at least three of the best mortgage lenders to ensure you’re getting a loan at the most competitive possible rate.

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