Current Mortgage Rates -- November 1, 2021: Rates Fall for Most Loans

How are mortgage rates trending on Nov. 1, 2021? Find out here.

As the month of November begins, average mortgage rates are down for most loans. If you are thinking about buying a home, take a look at today's average rates for fixed and adjustable-rate loans, as well as some tips on how to decide which mortgage is right for you.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.304%, down 0.006% from Friday's average of 3.310%. A mortgage loan at today's average interest rate would cost you $438 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $57,743 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.010%, up 0.042% from Friday's average of 2.968%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $555 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $33,224.

Over time, this loan is less expensive than the 30-year loan because of the lower interest rate and the reduced time paying interest charges. But, since the payoff time is shorter, each monthly payment is higher with the 20-year loan than with the 30-year loan since you aren't making as many payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.541% down 0.009% from Friday's average of 2.550%. You'd be looking at a principal and interest payment of $669 per $100,000 borrowed at today's average rate. Interest costs would total $20,370 per $100,000 in mortgage debt over the life of the loan.

As you can see, this loan is the cheapest of the fixed-rate options over time but has the highest monthly payments. The very short repayment time accounts for both the low total costs and the high monthly expenses associated with a 15-year loan.

5/1 ARMs

The average 5/1 ARM rate is 2.826%, down 0.174% from Friday's average of 3.000%. After five years, this rate begins adjusting. It's likely it will go higher, because rates remain relatively low right now based on historic standards. You should be aware you're taking a risk if you choose this loan, since rising rates would make your monthly payments and total costs go up.

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.