30-year mortgage rates crawl back below 3% for first time this week | Oct. 14, 2021


30-year mortgage rates crawl back below 3% for first time this week | Oct. 14, 2021

Based on data compiled by Credible, mortgage rates have fallen for two key terms and remained unchanged for two others since yesterday.

  • 30-year fixed mortgage rates: 2.990%, down from 3.125%, -0.135
  • 20-year fixed mortgage rates: 2.750%, unchanged
  • 15-year fixed mortgage rates: 2.250%, down from 2.375%, -0.125
  • 10-year fixed mortgage rates: 2.125%, unchanged

Rates last updated on Oct. 14, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: Today is the first day this week that 30-year rates have fallen below 3%. For most of October, 30-year rates have flirted with the 3% mark, possibly heralding the beginning of predicted rate increases. Locking in a mortgage rate today means homebuyers can get ahead of the coming increases. Twenty-year fixed mortgage rates, which have held steady at 2.750% for seven straight days, may present buyers with an opportunity for interest savings and a lower monthly mortgage payment.

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.

Credible, a personal finance marketplace, has 4,500 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

Looking at today’s mortgage refinance rates

Today’s mortgage refinance rates fell for three key terms while holding steady for the fourth. The average mortgage refinance rate, which reached a 114-day high yesterday, fell to 2.529% today. If you’re considering refinancing an existing home, check out what refinance rates look like:

  • 30-year fixed refinance rates: 2.990%, down from 3.125%, -0.135 
  • 20-year fixed refinance rates: 2.750%, unchanged
  • 15-year fixed refinance rates: 2.250%, down from 2.375%, -0.125
  • 10-year fixed refinance rates: 2.125%, down from 2.250%, -0.125

Rates last updated on Oct. 14, 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.

Credible has earned a 4.7-star rating (out of a possible 5.0) on Trustpilot and more than 4,500 reviews from customers who have safely compared prequalified rates.

How much can I borrow for a mortgage?

It’s critical to have an idea of how much you can afford to borrow for a mortgage before you begin home shopping or make an offer on a house.

Generally, the 28/36 rule is a good measure of how much you can afford to borrow without strapping your finances. The rule states that your mortgage payment, including taxes and insurance, shouldn’t be more than 28% of your gross monthly income. And all your debts, including your mortgage and other monthly expenses like car and student loan payments, shouldn’t exceed 36% of your gross monthly income.

For example, if your gross monthly income is $6,250 (annual salary of $75,000), you should be able to afford a monthly payment of $1,750. And your total monthly debt load shouldn’t exceed $2,250.

A general rule of thumb is that you shouldn’t take out a mortgage that’s two to two and half times your gross annual income. So in the above scenario, the maximum you should borrow to buy a house would be $187,500.

Ultimately, lenders determine how much you can afford to borrow by weighing your income, debt, assets, credit and other financial factors.

Current mortgage rates

The average mortgage rate fell to 2.529% today — a five-day low. 

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 2.990%. This is down from 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 2.750%. 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 2.250%. This is down from 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 the same as 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.

Thousands of Trustpilot reviewers rate Credible "excellent".

Rates last updated on Oct. 14, 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 the same as this time last week, and are largely higher than they were on Oct. 14, 2020.

  • 30-year fixed mortgage rates: 2.990%, the same as last week 
  • 20-year fixed mortgage rates: 2.750%, the same as last week
  • 15-year fixed mortgage rates: 2.250%, the same as last week
  • 10-year fixed mortgage rates: 2.125%, the same as last week

Rates last updated on Oct. 14, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

30-year mortgage rates crawl back below 3% for first time this week | Oct. 14, 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.

How does the loan term impact my mortgage?

Your loan’s term is the number of years in which you’ll make equal monthly payments of principal and interest to repay your mortgage. Generally, shorter repayment terms come with lower interest rates, and longer terms have higher interest rates. Longer terms and shorter terms both have their pros and cons. 

With a shorter repayment term you’ll:

  • Get a lower interest rate
  • Pay less interest over the life of the loan
  • Have a higher monthly payment amount

A longer repayment term will give you:

  • A lower monthly payment amount
  • A higher interest rate
  • Higher interest costs over the life of the loan

Generally, a shorter repayment term is best for people who can afford a larger monthly payment, who want to build home equity quickly, don’t plan to stay in their home for long and who are buying a house that’s well within their ability to afford.

You might choose a longer repayment term if your priority is a lower monthly payment, you know you’ll be in your home long-term or you want to increase the mortgage amount you can qualify for.

Looking to lower your home insurance rate?

A home insurance policy can help cover unexpected costs you may incur during homeownership, such as structural damage and destruction or stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.

Credible is partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy and the whole process can be completed entirely online.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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.