Are you in the market for a new home or considering refinancing your current home loan? If so, you’re probably trying to figure out the best rate you can get on your mortgage. With a wide variety of mortgage lenders available, understanding your options and the current interest rates can be overwhelming. In this comprehensive guide, we’ll provide an overview of the current mortgage interest rates and compare them against the lowest rates available on the market so you can make an informed decision.

Mortgage interest rates have been at historic lows in 2020 and 2021 due to the Covid-19 pandemic. By July 2020, the 30-year fixed rate fell to below 3%, one of the lowest rates the market has seen in 45 years. But mortgage rates have been steadily increasing in the first quarter of 2021, especially for 15-year loans. Many borrowers are finding that taking advantage of these low rates might be the opportunity to secure a better rate before the market rises again.

2020-2023 Mortgage Rates Overview

Current mortgage rates for 20-year and 30-year fixed-rate loans, as well as 15-year and jumbo adjustable-rate loans, can vary from lender to lender, but the average APR for a 30-year loan is 7.06%. Meanwhile, the best rate reported for a 30-year loan as of March 7, 2021 was 7.04%, while the best FHA 30-year fixed rate was 6.78%. The best rate for a 15-year fixed rate mortgage was 6.35%.

These rates are only an average, however, and your mortgage rate could be higher or lower depending on a number of factors, including your credit score, loan type, home price and down payment amount. The best way to get the right rate for your loan is to compare the offers of different lenders and mortgage brokers to understand what you can expect and to find the rate that best fits your needs.

You should also keep in mind that paying points on your mortgage can lower your mortgage’s interest rate. A point is a fee paid to the lender that equal to 1% of the mortgage loan amount, typically in exchange for a lower interest rate. Depending on the lender, points can reduce the mortgage rate by up to 0.25% so it can be beneficial to consider paying points as part of your loan.

Finally, it is important to know the difference between Conforming and Non-conforming mortgages. Conforming loans are mortgages that meet the guidelines set by Fannie Mae and Freddie Mac, and typically require a 20 own payment. Non-conforming mortgages can have higher rates, but may be easier for borrowers with low credit scores or those with limited down payment options.

Finding the Best Mortgage Rate

As you start your search for the best mortgage rate, you should shop around with multiple lenders and brokers to compare their offerings and find the rate that best fits your particular situation. It is also important to understand that different lenders may offer different rates, so it’s important to compare and find one that is the best for you.

Additionally, you may want to consider taking advantage of special quarterly or annual programs offered by some lenders. These can give you access to discounted interest rates, so it’s worth exploring these options if they are available to you.

Final Thoughts on Mortgage Rates

Now that you have a good understanding of the types of mortgage rates available and how you can find the right one for you, it is time to start looking at potential lenders. Remember that your credit score, loan type, home price and down payment can all affect what rate you ultimately get on your mortgage, so do your research to be sure you are getting the best rate available.

The home buying or refinancing process can be complicated, but understanding the current mortgage interest rates can help make sure you get the rate that is best suited to your particular situation. By utilizing this guide and shopping around with different lenders and brokers, you can be confident that you are getting the best mortgage interest rate for your home purchase or refinancing needs.