Today's mortgage rates hold steady at bargain lows | August 17, 2021
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Check out the mortgage rates for August 17, 2021, which are mostly unchanged from yesterday. (iStock)
Based on data compiled by Credible, mortgage rates remained largely unchanged since yesterday.
- 30-year fixed mortgage rates: 2.750%, unchanged
- 20-year fixed mortgage rates: 2.500%, unchanged
- 15-year fixed mortgage rates: 2.125%, unchanged
- 10-year fixed mortgage rates: 2.125%, up from 2.000%, +0.125
Rates last updated on August 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What this means: Interest rates across all repayment terms remain historically low, giving homebuyers greater purchasing power. Today’s low mortgage rates are fueling a booming real estate market in many areas of the country. When rates are low, homebuyers have greater purchasing power. For example, borrowing $250,000 for 30 years at 2.750% would yield a monthly payment of just $1,021.
To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:
Browse rates from multiple lenders so you can make an informed decision about your home loan.
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Looking at today’s mortgage refinance rates
Today’s mortgage refinance rates have remained largely unchanged since yesterday, with the exception of 20-year fixed rates, which edged downward. The average mortgage refinance rate is 2.375% — the lowest it’s been in nearly two weeks. If you’re considering refinancing an existing home, check out what refinance rates look like:
- 30-year fixed refinance rates: 2.750%, unchanged
- 20-year fixed refinance rates: 2.500%, down from 2.625%, -0.125
- 15-year fixed refinance rates: 2.125%, unchanged
- 10-year fixed refinance rates: 2.125%, unchanged
Rates last updated on August 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
A site like Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.
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What is a good mortgage rate?
Many factors influence the mortgage rate a lender may offer you. But generally, a good mortgage rate is one that’s the lowest you can qualify for based on your individual factors, such as credit history, income, other debts, down payment amount, and more.
A rate that’s good for your financial situation should result in a monthly mortgage payment that you can manage, while leaving plenty of room in your monthly budget to put toward savings, investments, and an emergency fund. And a good rate should be competitive with average rates in the geographic area where you’re looking to buy.
Once you’ve chosen the home loan type that works for you, you can compare multiple lenders to truly find the best rates.
Current mortgage rates
Mortgage interest rates continue to hold at historical lows, despite day-to-day fluctuations. Across all repayment terms, rates have stayed below 3% for two months.
Current 30-year mortgage rates
The current interest rate for a 30-year fixed-rate mortgage is 2.750%. This is the same as yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.
Current 20-year mortgage rates
The current interest rate for a 20-year fixed-rate mortgage is 2.500%. This is the same as yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.
Current 15-year mortgage rates
The current interest rate for a 15-year fixed-rate mortgage is 2.125%. This is the same as yesterday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable.
Current 10-year mortgage rates
The current interest rate for a 10-year fixed-rate mortgage is 2.125%. This is up from yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.
You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.
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Rates last updated on August 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
How Credible mortgage rates are calculated
Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
Credible mortgage rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
How mortgage rates have changed
Today, mortgage rates are mixed compared to this time last week.
- 30-year fixed mortgage rates: 2.750%, down from 2.875% last week, -0.125
- 20-year fixed mortgage rates: 2.500%, down from 2.625% last week, -0.125
- 15-year fixed mortgage rates: 2.125%, the same as last week
- 10-year fixed mortgage rates: 2.125%, up from 2.000% last week, +0.125
Rates last updated on August 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.
With more than 4,500 reviews, Credible maintains an "excellent" Trustpilot score.
The forecast for mortgage rates in 2021
Researchers at Freddie Mac expect mortgage rates to rise slightly throughout 2021, citing the Federal Reserve’s commitment to keeping interest rates low for the foreseeable future.
Fannie Mae researchers anticipate mortgage rates to trend slightly higher this year, citing an ongoing rise in the 10-year Treasury yield. Ultimately, though, Fannie Mae experts believe lenders will "absorb" some of the elevated costs as "refinance demand gradually wanes" — keeping rates at relatively stable levels.
Here are the predictions for how 30-year fixed rates will look for the rest of the year:
Freddie Mac
- Q2 (April to June): 2.9%
- Q3 (July to September): 3.0%
- Q4 (October to December): 3.0%
Fannie Mae
- Q2 (April to June): 2.8%
- Q3 (July to September): 2.9%
- Q4 (October to December): 2.9%
How accurate were their predictions?
Actual average 30-year fixed rate in Q1 (January to March): 2.877%
- Freddie Mac prediction: 2.9%
- Fannie Mae prediction: 2.7%
What are mortgage points?
To understand what mortgage points are and how they work, it’s helpful to keep in mind that charging interest is the main way lenders make money. When you get a low interest rate, and pay less interest, your lender makes less money off your mortgage than they would if they charged you a higher interest rate.
Points — also called discount points — are a way for lenders to make money while still giving you a lower interest rate. Points are upfront charges you pay at closing in exchange for a lower interest rate. They increase your closing costs but can lower your interest expense over the life of the loan.
Generally, one point is equal to 1% of the loan amount, although that can vary. How much each point will lower your interest rate depends on the lender, the type of mortgage, and the mortgage market in the area where you’re buying.
Here’s an example of how mortgage points can work.
- You apply for a $200,000 mortgage at 4% interest
- Your lender charges you two discount points
- Each point is equal to 1% of your loan amount and lowers your interest rate by 0.25%
- You pay your lender $4,000 at closing
- Your lender reduces your interest rate by 0.50% to 3%
Points may be a good option if you know you’re going to be in your home for a long time and will be able to recoup the extra closing costs and enjoy the interest savings. Points may also be a way to get a lower interest rate if your credit isn’t strong enough to qualify for a low rate.
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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.