Today's Mortgage Rates -- August 2, 2021: Rates Fall for 30-Year and 15-Year Loans

by Christy Bieber | Published on Aug. 2, 2021

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
House key inside a lock with Today's Mortgage Rates graphic.

Image source: Getty Images

Buying a house? Find out how rates are changing as August gets underway.

On August 2, 2021, mortgage rates are mixed, with some trending up and others down. Potential home buyers should track how rates are changing so they can get an idea of what they'll pay for a mortgage and whether it is a good time to get a home loan.

Here are average mortgage rates for today:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.035%
20-year fixed mortgage 2.789%
15-year fixed mortgage 2.291%
5/1 ARM 3.164%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.035%, down 0.007% from Friday's average of 3.042%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $423. The total costs of interest would add up to $52,458 per $100,000 borrowed at today's average rate.

20-year mortgage rates

The average 20-year mortgage rate today is 2.789%, up 0.013% from Friday's average of 2.776%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $544 per $100,000 borrowed. You'd be looking at total interest costs of $30,583 per $100,000 in mortgage debt over the life of the loan.

Your total interest costs are lower with this loan compared with the 30-year mortgage, but each monthly payment is higher. That's what happens when you take 10 years off your payment schedule. You pay interest for far less time but make many fewer payments so each one must be higher.

15-year mortgage rates

The average 15-year mortgage rate today is 2.291%, down 0.006% from Friday's average of 2.297%. You'd be looking at a principal and interest payment of $657 per $100,000 borrowed at today's average rate. Your total interest costs over the life of the loan would equal $18,259 per $100,000 borrowed.

Thanks to the short payoff time and low rate, this loan is the cheapest over time. You do need to be prepared to make much higher monthly payments, though, if you opt for a 15-year loan over a 20-year or 30-year mortgage.

5/1 ARMs

The average 5/1 ARM rate is 3.164%, up 0.085% from Friday's average of 3.079%. This rate may seem attractive, but it is guaranteed just for the first five years. You have far less certainty with this loan than with the 30-year fixed-rate loan. You need to be willing to take the risk that your rate could go up, driving up monthly payments and total costs.

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.

About the Author