Current Mortgage Rates -- June 30, 2021: Rates Fall for All Loans

In the process of buying a house? Check out today's average mortgage rates.

On the last day of June, mortgage rates are down across the board. If you are interested in purchasing a home, rates are very competitive now, although they are up from the record lows seen during the heart of the coronavirus pandemic.

Check out today's average rates for Wednesday, June 30, to see what a home loan might cost you:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.179%, down 0.012% from yesterday's average of 3.191%. If you borrow at today's average rate, your monthly principal and interest payment would be $431 per $100,000 borrowed. Over the life of the loan, you'd pay total interest costs of $55,275 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.938%, down 0.018% from yesterday's average of 2.956%. A mortgage loan at today's average interest rate would cost you $551 per $100,000 borrowed. The total costs of interest would add up to $32,360 per $100,000 borrowed at today's average rate.

The 20-year loan has an interest rate below the 30-year loan, but it has higher monthly payments because you don't have as long to pay off your loan. Every monthly payment must be larger to get the loan paid down a decade sooner. You will save a lot of money on interest over time, though, both because of the lower rate and because you don't pay interest for as long.

15-year mortgage rates

The average 15-year mortgage rate today is 2.465%, down 0.015% from yesterday's average of 2.480%. At this average rate, you'd be looking at a principal and interest payment of $665 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $19,726.

Interest savings is even greater with the 15-year loan because the rate is lower and because you're paying interest for many fewer years. But this loan's short payoff time means each monthly payment must be considerably higher.

5/1 ARMs

The average 5/1 ARM rate is 2.931%, down 0.079% from yesterday's average of 3.010%. ARM stands for adjustable-rate mortgage, so you can't count on this rate forever. After five years, the rate will begin adjusting. Since it could potentially end up higher than the rate on the 30-year fixed-rate loan, this option could be more expensive in the long run even though it initially appears cheaper.

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.