Current Mortgage Rates -- October 26: Rates Inch Up As October Nears Its End
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|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||2.887%|
|20-year fixed mortgage||2.727%|
|15-year fixed mortgage||2.415%|
DATA SOURCE: THE ASCENT'S NATIONAL MORTGAGE INTEREST RATE TRACKING.
30-year mortgage rates
The average 30-year mortgage rate today is 2.887%, up .005% from Friday's average rate of 2.882%. At today's average rate, your monthly payment for principal and interest would total $416 per $100,000 borrowed. Over the life of the loan, total interest costs would add up to $49,592 per $100,000 in mortgage debt borrowed.
Check out The Ascent's mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you'd save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.
20-year mortgage rates
The average 20-year mortgage rate today is 2.727%, up .014% from last Friday's average of 2.713%. For each $100,000 you borrow at today's average rate, you'd be looking at a monthly principal and interest payment of $541. During your entire loan repayment period, total interest costs would add up to $29,847 per $100,000 borrowed.
You'll pay a lower average interest rate for a 20-year fixed-rate mortgage than for a 30-year one, but your monthly payments are still higher due to the accelerated repayment timeline. When you pay your loan off a decade earlier, you'll save substantially on interest but will pay more each month.
15-year mortgage rates
The average 15-year mortgage rate today is 2.415%, up .009% from last Friday's average of 2.406%. At today's average rate, your monthly payment would equal $663 for principal and interest per $100,000 borrowed. You would pay $19,303 in total interest for each $100,000 in mortgage debt over the life of your loan.
While the interest rate on a 15-year loan is even lower than on a 30-year or 20-year loan, monthly payments are even higher due to the fact you're taking another five years off your debt repayment timeline. Of course, you're saving considerably on total interest over the life of the loan by paying off your mortgage so quickly.
The average 5/1 ARM rate is 3.491%, up .043% from last Friday's average of 3.448%. This initial rate is guaranteed only for the first five years after borrowing, after which your rate can adjust upward (or downward) once per year.
Traditionally, ARMs make sense for borrowers because they have a lower starting rate than fixed-rate options, so borrowers seeking the lowest possible interest rate are willing to gamble on rates not rising. It makes no sense to do this when you can get a fixed-rate loan at a lower rate -- especially as rates almost assuredly would adjust upward after five years time due to the fact that they are near record lows right now.
Should I lock my mortgage rate now?
A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, though you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.
If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today's rates are still quite low, we don't know if rates will go up or down over the next few months. As such, it pays to:
- LOCK if closing in 7 days
- LOCK if closing in 15 days
- LOCK if closing in 30 days
- FLOAT if closing in 45 days
- FLOAT if closing in 60 days
Before locking in, you should get rate quotes from at least three of the best mortgage lenders to ensure you're getting a loan at the most competitive possible rate.
The Ascent team partners with market-leading data provider Optimal Blue to track the seven-day average of daily mortgage rates that actual borrowers are locking in nationwide. Learn more about our mortgage rates tracking methodology .
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