Mortgage Rates

Mortgage Rates Today

What is a 30-year mortgage rate?

30 year mortgage rate

The 30-year mortgage rate is the fixed interest rate that home buyers in the United States would pay if they took out a 30-year loan. There are several distinct types of mortgages available to homeowners, each with its own set of interest rates and monthly payments. Historically, the 30-year mortgage rate peaked at 18.6% in 1981, and rates in 2021 will be the lowest in decades.

Mortgage interest rates reflect the cost of capital for lenders, which they pass on to you as an interest rate. The amount of interest you pay throughout the life of your mortgage is determined by your rate.

Despite the fact that nearly all mortgages now have fixed rates, tiny fluctuations in interest rates might cause your monthly payments to rise or fall. That discrepancy can build up over the course of a 30-year period. Understanding how interest rates affect loan pricing and how your rate is calculated, will help you weigh your options and make the best selection for your circumstances.

Today’s 30-year mortgage rate

The 30-year fixed-rate mortgage has an average rate of 3.054% as of October 14, 2021.
Getting a good mortgage deal is similar to getting a good bargain on a car. You conduct online research, consult with friends and family, and then shop around. The most crucial stage is the last one, which entails applying to a couple of lenders.

When you use the Loan Estimates to compare loan offers, you’ll be confident that you’ve found the greatest rate and fee combination. You don’t have to go with the 30-year fixed rate. Refinancers frequently choose a 15-year fixed loan when in a decreasing rate environment. Adjustable-rate mortgages are popular for high dollar loans and higher rate environments since they feature low monthly payments, for the first few years of the loan.

30-year mortgage calculator

A 30-year mortgage calculator is an excellent tool for estimating a monthly payment. When utilizing a mortgage calculator, keep in mind that in addition to the Principal and Interest payment, taxes, insurance, and maybe Private Mortgage Insurance should also be included. The amount of Private Mortgage Insurance is decided by the loan program, credit score, down payment amount, and a number of other criteria. If the Mortgage Calculator does not allow you to include taxes, insurance, or Private Mortgage Insurance, speak with a Loan Officer to acquire an estimate. Keep in mind that the Mortgage Calculator is only as good as the data you provide.

What are the 30-year fixed mortgage rates?

Mortgage rates vary on a daily basis and sometimes a couple times within the same day. Rates are influenced by multiple economic factors but rate trends can be determined by watching the yield on the 10 Year Treasury. When the yield is going up, rates are going up. Conversely, when the yield is going down, rates are going down.

Also, be aware that bad economic or global political concerns can cause mortgage rates to drop. Rates can rise if there is good news. The quantity of your down payment and your credit score are two factors over which you do have control. Lenders determine their base interest rate based on the risk they believe an individual loan poses. Credit scores over 780 will allow the client to get the best rates available.

Loan Level Price Adjustments (LLPA’s) are adjustments made as a result of increased risk. Some risk factors are lower credit scores, higher loan to values, cash out, investment properties, and some examples of LLPA’s that will increase your rate. If you have the ability to limit the LLPA’s, you want to know so that you may get a lower rate.

So, when looking for the 30 Year fixed mortgage rate, make sure you understand the adjustments and what influences the rate.

The pros and cons of 30-year fixed mortgages


Payments are lower. The monthly payments on a 30-year fixed mortgage are cheaper than those on shorter term loans, because they are amortized over 30 years.

Flexibility – you are welcome to pay the minimum payment each month. However, if you want to reduce your debt faster, you can make larger or additional payments. If you don’t have any spare cash, you can return to making the minimal monthly payments.

Predictability – the monthly Principal and Interest payments are the same during the life of the loan because it has a fixed rate. Keep in mind that the payments may include Taxes and Insurance, both of which might rise or fall. You can borrow more with a 30-year loan because the monthly payments are lower than with a shorter loan (such as 20 or 15 years).


A higher rate of interest. The interest rate on a 30-year fixed mortgage is greater than a 15-year fixed mortgage since the mortgage lender is tying up its money for a longer period of time. Overall, there is more interest because you make more payments over the course of a 30-year mortgage.

You run the risk of taking on too much debt. A 30-year loan allows you to borrow more, which may persuade you to take out a larger loan. You might be able to handle the monthly payments, but you don’t have disposable income for other necessities and luxuries.

Freddie Mac 30-year mortgage rate

According to a Freddie Mac survey, a typical borrower can expect to save $400 in interest in the first year by comparing five lenders rather than applying with just one. Comparison searching for a mortgage can save thousands of dollars over the course of several years.  However, sometimes consulting with too many lenders can confuse and frustrate the buyer.  Consult with a Lender who will educate you on the different options and help you obtain the best rate possible.

National average 30-year mortgage rate trends

When looking at 30-year mortgage trends, it is a good idea to follow the 10 Year Treasury yields to understand the current and previous trends.  The yield indicates which direction rates have been and are going.  When the yield is going up, rates are going up and when the yield is going down, the rates are going down.  However, a great mortgage Lender will be able to interpret these trends for you and give advice and opinions.

Current 30-year mortgage rates

When looking for a 30-year mortgage rate, make sure you consult with a couple mortgage Lenders to compare rates.  The 30 Year-year mortgage rate can vary between lenders by as much as .5%.

Normally, Lenders and Brokers can give you an estimate for the current mortgage rate without a complete application.  However, completing an application will give the mortgage Lender a complete picture of your credit and employment profile, which will give you a more accurate rate.   When looking for interest rates, don’t pay a fee upfront until you are ready to commit to that particular Lender. 

Applying for a mortgage is simple and most lenders offer online forms so you won’t have to drive to a branch or office. Furthermore, applying for several mortgages in a short period of time should not affect your credit score since shopping for a mortgage no longer is a deduction to your credit score.

Finally, while comparing rate quotes, don’t just look at the interest rate; look at the APR as well. The annual percentage rate (APR) represents the cost to acquire the loan.  However, be careful when comparing APR’s because they frequently aren’t accurate.

Historical 30-year rates

1970’s and 1980’s
An oil embargo on the United States led the country into recession in both the 1970s and 1980s. The embargo was imposed by the Organization of Petroleum Exporting Countries (OPEC). Hyperinflation, or rapid increases in the price of goods and services, was one of the consequences of this.

The Federal Reserve hiked short-term interest rates to combat hyperinflation. Money in savings accounts became more valuable as a result of this. However, because all interest rates increased, the cost of borrowing money increased as well. According to Freddie Mac data, interest rates reached their highest peak in modern history in 1981, when the annual average was 16.63%. Fixed rates began to fall after that, but by the end of the decade, they were hovering around 10%. As you can see, borrowing money in the 1980s was very expensive.

1990’s to 2000’s
Inflation began to moderate slightly in the 1990s. In 1990, the average mortgage rate was 10.13%, but it gradually declined, eventually falling below 7% in 1998 to 6.94%. The introduction of the internet, according to research issued by the Economic Policy Institute, was one of the major reasons for the economic growth and reducing inflation experienced later in the decade. Increased investment in new technology research and development, sparked massive economic growth.

From 8.05% in 2000 to the high-five percent range in 2003, mortgage rates have progressively decreased. This decade, however, was not all good news. Property values fell sharply until they reached their lowest point in 2008, which contributed to the housing crash. As a result, many homeowners owed more on their homes than the value of the property. The Federal Reserve slashed interest rates to make borrowing money cheaper in order to provide some respite and encourage the economy.

2010’s – 2020’s
Mortgage rates began the new decade at 4.69%, riding the tide of low bank borrowing costs. They continued to fall rapidly, and by 2012, they were in the mid-three percent range. In 2013, the rate increased to 3.98%. One of the main reasons for this was the bond market’s reaction to the Federal Reserve announcement that it would stop buying as many bonds. When there are fewer buyers available, mortgage bond yields must rise in order to entice buyers. Mortgage rates rose as a result of this and in 2014, rates increased to 4.17%. As the market calmed down in 2015, mortgage rates fell back to 3.85%. Throughout the year, rates continue to fall. When January 2020 rolled along, the 30-year fixed rate was around 3.7%.

Then came COVID-19, which made its way to the United States. The Federal Reserve responded by lowering the Federal funds rate to between 0 and 0.25%. Other short and long term rates fell as a result. This measure was aimed to encourage people to take up home loans and other types of loans. There was also a significant surge in refinance and mortgage applications as a result of it. By June 23, Freddie Mac had reported a 3.6% average mortgage rate for a 30-year fixed-rate mortgage. Many predict that the rate will remain stable as the year passes.

Why would someone take a mortgage out for 30 years?

You are purchasing your home with the expectation that it will appreciate in value over time. In fact, the value of your home will fluctuate dramatically over the next 30 years – you just won’t get monthly statements to show you how it’s doing. Regardless of whether you have a mortgage or not, your home’s value will eventually increase over time. So, buying a house is always a good idea when considering appreciation over time.

So, even though a 30-year mortgage is a very long term, the appreciation of the house should be greater than the interest rate you are paying.  So, over time, you are building equity and creating wealth by buying a house, even if it is a 30-year mortgage. 

At what age can you not get a 30-year mortgage?

It’s unlawful for lenders to discriminate on the basis of age, which is why you’re never too old to receive a mortgage. The Equal Credit Opportunity Act prohibits lenders from using age as one of numerous variables in making mortgage or other loan decisions. Retirees must generally show that whatever income they receive, whether from Social Security, a workplace pension, rental income, investment income from your retirement, or other sources, will allow them to pay their mortgage and still have enough money left over to cover basic living expenses.

Can a 64 year old get a 30 year mortgage?

The quick answer is that you can never be too old to get a 30-year mortgage, but that doesn’t mean it’s a good option for every older homeowner who needs financing. If you are interested in paying off the mortgage and being debt free, obviously a 30 year mortgage isn’t the best option.   However, if you have no intention of paying off the house and are more interested in cash flow, a 30-year mortgage is a great option. 

What is the oldest age you can get a 30 year mortgage?

There are no age restrictions, and it is illegal to discriminate against someone because of their age. You’re good to go if you could afford the loan. Although underwriters are interested in your source of income, social security is guaranteed and has a (Cost of Living Adjustment) COLA in most years.

Even if the loan is not paid off prior to the borrower passing away, they bank still has the collateral to secure the loan and recoup the balance of the loan.  So, that is not a concern of the bank when lending money to the elderly. 

Health records aren’t taken into account when underwriting a loan.  Banks mainly consider the credit, income and collateral when determining if a borrower will be approved.

Can I get a 30 year mortgage at age 55?

Because lenders frequently put upper age limits on each mortgage, it may not be possible to secure a mortgage at any age. It’s not uncommon to see higher age limits of 65 to 70 for new mortgages, as well as age limits of 70 to 85 for repaying a mortgage. Because your income is expected to decline after you reach retirement age, banks and building societies are likely to be hesitant to sanction loans that extend beyond that age. They hold this opinion despite the reality that many borrowers will be able to pay a mortgage after retirement, either by working longer or by using income from savings and investments.

Is 50 too old to buy a house?

It’s never too late to buy a house and become a homeowner! Regardless of age, buying a house is the largest purchase you will ever make and the best way to build wealth.  So, believe an age makes you too old to buy a house.  Make sure you talk with a seasoned Loan Officer to determine the best mortgage option for you and it meets your financial goals.  Understanding your financial goals will guide your steps and put you in the best position when retirement age comes. 

Contact Mortgage Rates Today to get you the best rates with a personal touch.