Getty

Some principal mortgage rates declined today. 15-year fixed and 30-year fixed mortgage rates both moved down. For variable rates, the 5/1 adjustable-rate mortgage also declined.
Although mortgage rates are always changing, they are at a historic low. If you plan to finance a home, now might be an optimal time to secure a fixed rate. Before you buy a home, remember to take into account your personal needs and financial situation, and shop around for various lenders to find the right one for you.

Check out mortgage rates that meet your distinct needs

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 3.02%, which is a decrease of 3 basis points compared to one week ago. (A basis point is equivalent to 0.01%.)
The most common loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will typically have a greater interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. 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 2.31%, which is a decrease of 3 basis points from the same time last week.
You’ll definitely have a higher 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, as long as 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 3.03%, a downtick of 4 basis points from the same time last week.
You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But shifts in the market might cause your interest rate to increase after that time, as detailed in the terms of your loan.
For borrowers who plan to sell or refinance their house before the rate changes, an ARM could be a good option. Otherwise, shifts in the market means your interest rate may be significantly higher once the rate adjusts.

Mortgage rate trends

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:

Average mortgage interest rates

Product
Rate
Last week
Change
30-year fixed
3.02%
3.05%
-0.03
15-year fixed
2.31%
2.34%
-0.03
30-year jumbo mortgage rate
2.80%
2.80%
N/C
30-year mortgage refinance rate
3.00%
3.04%
-0.04

Rates as of Aug. 18, 2021.

How to find personalized mortgage rates

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. Make sure to think aboutyour current finances and your goals when trying to find a mortgage.
Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate.
Apart from the mortgage interest rate, factors including closing costs, fees, discount points and taxes might also affect the cost of your home. Be sure to talk to multiple lenders — such as local and national banks, credit unions and online lenders — and comparison shop to find the best loan for you.

How does the loan term impact my mortgage?

One important thing to consider when choosing a mortgage is the loan term, or payment schedule.
The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only set for a certain amount of time (usually five, seven or 10 years). After that, the rate changes annually based on the market rate.
One thing to think about when choosing between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your home. For people who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages may offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However you may get a better deal with an adjustable-rate mortgage if you only have plans to to keep your house for a few years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure to do your research and understand what’s most important to you when choosing a mortgage.