A few major mortgage rates sunk lower today. The average interest rates for both 15-year fixed and 30-year fixed mortgages took a tumble. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also sunk lower.
Mortgage interest rates are never set in stone, but interest rates are at historic lows. For those looking to secure a fixed rate, now is an excellent time to finance a house. Before you buy a home, remember to consider your personal needs and financial situation, and speak with different lenders to find the best one for you.

Take a look at mortgage rates for different styles of loan

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.12%, which is a decline of 6 basis points as seven days ago. (A basis point is equivalent to 0.01%.)
Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will typically have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.43%, which is a decrease of 1 basis point from seven days ago.
Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. However, if you’re able to afford the monthly payments, there are several benefits to a 15-year loan. These include usually being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.12%, a fall of 7 basis points compared to a week ago.
For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But you may end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate.
For borrowers who plan to sell or refinance their house before the rate changes, an ARM may be a good option. Otherwise, shifts in the market means your interest rate could be a good deal higher once the rate adjusts.

Mortgage rate trends

We use information 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:

Rates as of April 20, 2021.

How to shop for the best mortgage rate

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. When shopping around for home mortgage rates, consider your goals and current finances.
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. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.
Aside from the mortgage interest rate, other costs including closing costs, fees, discount points and taxes might also impact the cost of your house. Make sure to shop around with multiple lenders — like credit unions and online lenders in addition to local and national banks — in order to get a loan that’s best for you.

What is a good loan term?

When picking a mortgage, you should consider 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.
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 the same for a certain amount of time (typically five, seven or 10 years). After that, the rate changes annually based on the market interest rate.
One factor to consider 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 living long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However you could get a better deal with an adjustable-rate mortgage if you only plan to keep your house for a couple years.
The “best” loan term all all depends on your own situation and goals, so make sure to consider what’s important to you when choosing a mortgage.