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Mortgage interest rates today for June 23, 2021: Rates move up

CNET logo CNET 6/23/2021 CNET staff
a sign on the side of the street: David Paul Morris/Getty © Provided by CNET David Paul Morris/Getty

Some important mortgage rates crept upward today. 15-year fixed and 30-year fixed mortgage rates both inched upward. We also saw a rise in the average rate of 5/1 adjustable-rate mortgages. Although mortgage rates are always moving, they are lower than they've been in years. Because of this, right now is a good time for prospective homebuyers to get a fixed rate. Before you buy a home, remember to think about your personal needs and financial situation, and compare offers from various lenders to find the right one for you.

a sign on the side of the street: Your home buying journey starts with getting a loan preapproval letter.  © David Paul Morris/Getty

Your home buying journey starts with getting a loan preapproval letter. 

Compare nationwide home loan rates from various lenders

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.18%, which is a growth of 11 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one -- but usually a higher interest rate. 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 2.48%, which is an increase of 13 basis points compared to a week ago. 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, if 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 3.19%, a rise of 11 basis points compared to last week. For the first five years, you'll usually get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an ARM may make sense for you. If not, changes in the market may significantly increase your interest rate.

Mortgage rate trends

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Today's mortgage interest rates

Loan termToday's rateLast weekChange
30-year mortgage rate3.18%3.07%+0.11
15-year fixed rate2.48%2.35%+0.13
30-year jumbo mortgage rate3.02%3.20%-0.18
30-year mortgage refinance rate 3.25%3.12%+0.13

Rates accurate as of June 23, 2021.

How to find the best mortgage rates

When you are ready to apply for a loan, you can connect with a local mortgage broker or search online. When researching home mortgage rates, take into account your goals and current finances. Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Besides the interest rate, other costs including closing costs, fees, discount points and taxes might also factor into the cost of your house. You should comparison shop with multiple lenders -- such as credit unions and online lenders in addition to local and national banks -- in order to get a loan that's the best fit for you.

How does the loan term impact my mortgage?

When picking a mortgage, it's important to consider the loan term, or payment schedule. The loan 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 stable for the life of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (usually five, seven or 10 years), then the rate fluctuates annually based on the current interest rate in the market.

One important 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 those who plan on living 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 in the long term. However you could get a better deal with an adjustable-rate mortgage if you only intend to keep your home for a couple 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 think about what's most important to you when choosing a mortgage.

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