Mortgage rates increase for Monday

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Multiple benchmark mortgage rates advanced today. The average rates on 30-year fixed and 15-year fixed mortgages both moved up. The average rate on 5/1 adjustable-rate mortgages, meanwhile, also rolled higher.

Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it may be a great time to lock in a rate. Just be sure to shop around.

RATE SEARCH: Compare mortgage rates in your area now.

30-year fixed mortgages

The average rate you’ll pay for a 30-year fixed mortgage is 4.10 percent, up 16 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was lower, at 4.02 percent.

At the current average rate, you’ll pay $483.20 per month in principal and interest for every $100,000 you borrow. That’s an extra $9.24 compared with last week.

You can use Bankrate’s mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.22 percent, up 9 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $701 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARMs

The average rate on a 5/1 ARM is 3.28 percent, adding 14 basis points over the last week.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.28 percent would cost about $437 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

RATE SEARCH: Want to see where rates are right now? See local mortgage rates.

Last updated: March 6, 2017.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”

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