Current Mortgage Rates -- June 23, 2021: Rates Rise for Most Loans

Are mortgage rates rising or trending down? Find out here.

On June 23, 2021, average mortgage rates are up a bit for most loans. These rates are just averages and each borrower's rate will be determined by their financial credentials. Still, they can give you a good idea of how rates are trending and what rate a typical borrower might expect.

Here are average mortgage rates for Wednesday, June 23:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 3.213%, up 0.013% from yesterday's average of 3.200%. If you take out a loan at today's average rate, you'd have a monthly principal and interest payment of $433 per $100,000 borrowed. You'd be looking at total interest costs of $55,944 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.953%, down 0.01% from yesterday's average of 2.963%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $552. Over the life of the mortgage loan, you'd pay total interest costs of $32,539 per $100,000 borrowed.

Borrowers should carefully compare different loan terms. A loan with a shorter payoff timeline saves money over time, but costs more each month. That's why the 20-year loan has lower total interest costs than the 30-year but higher monthly payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.496%, up 0.044% from yesterday's average of 2.452%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $667 per $100,000 in mortgage debt. Total interest costs would be $19,988 per $100,000 in mortgage debt over the life of the loan.

With its shorter payoff time, the 15-year has more expensive payments every month than the 20-year or 30-year since you make so many fewer payments. But because you pay interest for a lot less time, you'll save considerably on the total costs of your loan.

5/1 ARMs

The average 5/1 ARM rate is 2.827%, up 0.068% from yesterday's average of 2.759%. This rate may seem good compared with the 30-year fixed-rate loan. The only problem is, it's only locked in for five years while the 30-year loan will never change. With a 5/1 ARM you take the risk of rates adjusting up over time, which would make your total costs and monthly payments more expensive.

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, but 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

To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.