Today's Mortgage Rates -- July 5, 2021: Rates Down for All Fixed-Rate Loans

How are mortgage rates trending on July 5? Check out today's average rates to find out.

On July 5, 2021, mortgage rates are down for all fixed-rate loans. Your individual financial situation will determine your personalized rate, but it's still a good idea to keep tabs on national averages. That will help you see how rates are trending.

Here's what happened to average mortgage rates today:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.165%, down 0.006% from Friday's average of 3.171%. At today's average rate, you'd pay $431 per month in principal and interest per $100,000 borrowed. Total interest costs would add up to $55,000 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.925%, down 0.029% from Friday's average of 2.954%. If you borrow at today's average rate, your monthly principal and interest payment would be $551 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $32,204 per $100,000 borrowed.

You will pay less interest over time with this loan than with the 30-year loan, but each monthly payment will be higher since you aren't making as many payments. Consider whether lower monthly costs or lower total costs are more important.

15-year mortgage rates

The average 15-year mortgage rate today is 2.441%, down 0.01% from Friday's average of 2.451%. A loan at today's average rate would cost you $664 per month in principal and interest for each $100,000 you borrow. Your total interest costs over the life of the loan would equal $19,523 per $100,000 borrowed.

Total interest costs are even lower with the 15-year loan than with the 20-year. Of course, each monthly payment is much higher. Make sure the higher monthly payments fit comfortably into your budget before you choose this loan.

5/1 ARMs

The average 5/1 ARM rate is 2.989%, up 0.014% from Friday's average of 2.975%. You will only be guaranteed this rate for five years. After that, it will move with a financial index and could adjust up. Beware of the risk your loan will become more expensive if you choose an ARM.

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.