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Closely watched mortgage rate drops for Tuesday

Bankrate logo Bankrate 5/7/2019 Adrian D. Garcia
a sign in front of a building: Bernadette Gatsby/Unsplash © Provided by Bankrate, LLC Bernadette Gatsby/Unsplash

Mortgage rates showed no clear direction today, but one key rate fell. The average for a 30-year fixed-rate mortgage were down, but the average rate on a 15-year fixed held steady. The average rate on 5/1 adjustable-rate mortgages, meanwhile, increased.

Mortgage rates change daily, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just make sure you’ve looked around for the best rate first.

Compare mortgage rates in your area now.

30-year fixed mortgages

The average rate for a 30-year fixed mortgage is 4.05 percent, a decrease of 1 basis point over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was lower, at 4.04 percent.

At the current average rate, you’ll pay a combined $480.30 per month in principal and interest for every $100,000 you borrow. That’s a decline of $0.58 from last week.

You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.49 percent, unchanged over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $714 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARMs

The average rate on a 5/1 ARM is 3.95 percent, adding 2 basis points from a week ago.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.95 percent would cost about $475 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to see where rates are right now? See local mortgage rates.

Average mortgage rates
Product Rate Change Last week
30-year fixed 4.05% -0.01 4.06%
15-year fixed 3.49% N/C 3.49%
30-year fixed jumbo 4.25% +0.01 4.24%
30-year fixed refinance 4.05% -0.06 4.11%

Last updated: May 7, 2019.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”

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