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Since last week, all mortgage and refinance rates have risen by at least five basis points. Still, rates remain at all-time lows.
If you’re looking to get a mortgage or a refinance, you might want to choose a fixed-rate mortgage instead of an adjustable-rate mortgage. Fixed-rate mortgages are a preferential option to adjustable-rate mortgages because ARM rates start higher, and you may see a rate increase down the line.
Mortgage rates for Tuesday, March 23, 2021
| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 2.69% | 2.59% | 2.49% |
| 30-year fixed | 3.63% | 3.51% | 3.3% |
| 7/1 ARM | 5.06% | 4.95% | 4.31% |
| 10/1 ARM | 4.9% | 4.79% | 4.18% |
Rates from Money.com
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Mortgage rates have increased slightly since last Tuesday, with rates for both 7/1 ARMs and 10/1 ARMs going up by 11 basis points. Rates have also ticked up from this point last month.
We’re showing you the average rates nationwide for conventional mortgages, which may be what you consider “normal mortgages.” Government-backed mortgages through the FHA, VA, or USDA may offer you an improved rate – provided you’re eligible.
Refinance rates for Tuesday, March 23, 2021
| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 3.03% | 2.91% | 2.81% |
| 30-year fixed | 3.89% | 3.82% | 3.72% |
| 7/1 ARM | 5.27% | 5.07% | 4.82% |
| 10/1 ARM | 5.19% | 5.11% | 4.7% |
Rates from Money.com
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Since last Tuesday, all refinance rates have risen. Rates on 7/1 ARMs have increased by 20 basis points.
Rates are still at striking lows overall. Low rates often signify a struggling economy. As the US continues to feel the economic impact of the COVID-19 pandemic, rates will likely stay low.
Ways to get a low mortgage rate
Since last week, all mortgage and refinance rates have gone up. However, they remain at historic lows, and you may consider locking in a low rate today.
That said, a rate increase soon is probably unlikely, so you don’t have to hurry. Rates will probably remain low for several months, if not longer. You have the opportunity to better your financial standing and receive a lower rate.
- Improve your credit score by making timely payments, paying down debt, or letting your credit age. You’ll get a better interest rate with a higher score, and many lenders will lower your rate with a score of at least 700.
- Save more for a down payment. The minimum down payment you’ll need is contingent on which type of mortgage you want. You’ll likely get an improved rate with a higher down payment.
- Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a ratio of 36% or less. To better your ratio, pay down debts or seek ways to boost your income.
- Choose a government-backed mortgage. If you’re eligible, you might think about a USDA loan (designed for low-to-moderate-income borrowers buying in a rural area), a VA loan (aimed at military members and veterans), or an FHA loan (not designated for any particular group). Government-backed mortgages frequently come with better interest rates than conventional mortgages. As a bonus, down payments aren’t needed for USDA or VA loans.
You can secure a low rate now if your finances are in good shape, but you don’t need to rush to get a mortgage or refinance if you’re not prepared.
How 15-year fixed mortgages work
If you get a 15-year fixed mortgage, it will take you a decade and a half to pay off your loan, and you’ll pay the same interest rate the entire time.
However, it will cost you less to take out a 15-year term than a longer term. You’ll pay off the mortgage years in fewer years, and you’ll get a lower interest rate as well.
You’ll cough up higher monthly payments with a 15-year fixed mortgage than a 30-year fixed mortgage because you’ll pay off the same mortgage principal in half the time.
How 30-year fixed mortgages work
With a 30-year fixed mortgage, you’ll pay down your mortgage over 30 years, and you’ll pay a locked-in interest rate for the whole term. A 30-year term comes with a higher interest rate than a 15-year term.
You’ll fork over more in interest with a 30-year term than with a 15-year term, as you’re paying a higher interest rate for an extended period.
You’ll pay less per month with a 30-year fixed mortgage than with a 15-year fixed mortgage, though, because you’re dividing your payments over more years.
How ARMs work
With an adjustable-rate mortgage, you’ll lock in your rate for an agreed-upon amount of time. Then your rate will vary regularly. A 7/1 ARM keeps your rate the same for seven years, then your lender will change your rate annually
ARM rates are now at all-time lows, but you might want a fixed-rate mortgage instead. You can protect yourself from a potential rate increase down the line with an ARM and secure a low rate for 15 or 30 years.
If you’re thinking about getting an ARM, ask your lender what your rates would be if you chose a fixed-rate versus an adjustable-rate mortgage.
Though you can lock in a low rate now, make sure you’re financially ready before making any decisions.
Mortgage and refinance rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.
Laura Grace Tarpley is the associate editor of banking and mortgages at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.
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