Today's Mortgage Rates -- July 7, 2021: Rates Fall

Are mortgage rates rising or falling today? Find out here.

On July 7, 2021, average mortgage rates are down for all loans. If you are thinking about borrowing in order to buy a home, it is helpful to pay attention to how mortgage rates are trending. This can give you an idea of whether it's a good time to apply for a home loan.

Check out average mortgage rates for Wednesday, July 7:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.143%, down 0.021% from yesterday's average of 3.164%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $429. You'd be looking at total interest costs of $54,568 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.930%, down 0.021% from yesterday's average of 2.951%. You'd be looking at a principal and interest payment of $551 per $100,000 borrowed at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $32,264 per $100,000 borrowed.

You will save money over time with this loan compared with the 30-year mortgage because you don't pay interest as long. But you also have to pay higher monthly payments due to the shortened payoff time. You'll have to decide if that makes financial sense for you.

15-year mortgage rates

The average 15-year mortgage rate today is 2.431%, down 0.002% from yesterday's average of 2.433%. A mortgage loan at today's average interest rate would cost you $664 per $100,000 borrowed. Over the life of the loan, total interest costs would be $19,438 per $100,000 in mortgage debt.

With this loan, you will have high monthly payments because you have to pay off your entire home loan in such a short time. Of course, because you don't pay interest for very long and because the interest rate is lower, your cost savings over time are considerable.

5/1 ARMs

The average 5/1 ARM rate is 2.852%, down 0.125% from yesterday's average of 2.977%. You can only count on your loan staying at this rate for the first five years. It will begin adjusting once per year after that. And if the rate goes up, your loan could become more expensive. Think carefully about whether you want to take that risk, since the starting rate isn't much lower than the 30-year fixed-rate loan currently.

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.