Current Mortgage Rates -- September 22, 2020: Home Loans Hold Steady at Astoundingly Low Rates

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Mortgage rates continue to be favorable. Here's what they look like right now.

Mortgage rates are holding steady today, with both the 30- and 20-year loan sitting tight at under 3% and the 15-year loan just a notch above 2.4%. Rates are largely unchanged from yesterday and are averaging as follows:

Mortgage Type Today's Interest Rate
30-Year Fixed Mortgage 2.946%
20-Year Fixed Mortgage 2.831%
15-Year Fixed Mortgage 2.424%
5/1 ARM 3.307%

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

30-year mortgage rates

The average 30-year fixed mortgage rate today is 2.946%, up 0.008% from yesterday. At today's rate, you'll pay principal and interest of $419.02 for every $100,000 you borrow. That figure does not include expenses like property taxes and homeowners insurance premiums.

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 fixed mortgage rate today is 2.831%, down 0.14% from yesterday. At today's rate, you’ll pay principal and interest of $546.23 for every $100,000 you borrow. Though your monthly payment will go up by $127.20 with a 20-year loan versus a 30-year mortgage, you'll save $19,753 in interest over the course of your repayment period per $100,000 you borrow.

15-year mortgage rates

The average 15-year fixed mortgage rate today is 2.424%, an increase of 0.01% from yesterday. At today's rate, you'll pay principal and interest of $663.22 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $244.20 higher. Your interest savings, however, will total $31,468 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average interest rate for a 5/1 ARM is 3.307%, a 0.149% drop from yesterday. With a 5/1 ARM, the interest rate you're quoted initially will remain in effect for five years, after which it will adjust upward or downward once a year. By comparison, when you sign a 30-year fixed mortgage, you lock in the same mortgage rate for the life of your repayment period. Given that the 5/1 ARM's average interest rate is higher than that of the 30-year loan right now, a 30-year fixed mortgage is a better bet.

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 still quite 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

If you're ready to apply for a home loan, be sure to rate-shop with different mortgage lenders rather than settle on the first offer you get. When doing so, look not only at rates themselves, but at the closing costs you'll pay on your loan to ensure that you're really getting the best deal.

Our Research Expert