The 30-year fixed mortgage rate is 6.54%, up 3 basis points from last week. The 15-year fixed mortgage rate is 5.86%, down 15 basis points. The 5/1 adjustable-rate mortgage (ARM) is 6.24%, down 13 basis points.
Mortgage rates are mostly lower than last week, according to the latest data from Zillow’s lender marketplace. These are national average rates, rounded to the nearest hundredth, according to Zillow data.
Here are the latest mortgage rates for Sunday, August 16, according to Zillow: Refinance rates are also available for homeowners looking to replace their current mortgage with a new loan. Today’s refinance rates are:, according to the latest Zillow data.
With a fixed-rate mortgage, the interest rate stays locked for the entire life of the loan. This means borrowers generally know what their principal-and-interest payment will be throughout the loan. If the homeowner later refinances, the new mortgage will have a new interest rate. An adjustable-rate mortgage, or ARM, keeps the initial interest rate fixed for a set period. After that period ends, the rate can move higher or lower depending on economic conditions and the limits written into the mortgage contract. Borrowers should not compare lenders based only on the advertised interest rate. They should also look at the annual percentage rate (APR). The APR includes the interest rate along with factors such as discount points and fees.
For example, a 7/1 ARM keeps its initial rate for seven years. After that, the rate can change once every year for the remaining 23 years of a 30-year loan, according to Yahoo Finance. Because it reflects more of the total cost of borrowing, the APR can give borrowers a better way to compare mortgage offers from different lenders.
