Current average mortgage rates

Loan Type Interest Rate
30-year fixed-rate mortgage 3.57%
15-year fixed-rate mortgage 3.05%
5/1 adjustable-rate mortgage 3.35%

Source: Freddie Mac Primary Mortgage Market Survey, Oct. 10, 2019.

A perfect time to borrow

Nicely trimmed and manicured garden in front of a luxury house on a sunny summer day. Street of houses in the suburbs of Canada.
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Rates on home loans are much lower than they were last year at this time

The current average rate on a 30-year fixed-rate mortgage is 3.57%, down from 3.65% a week earlier, says mortgage giant Freddie Mac.

The really striking comparison is to last year at this time, when the benchmark mortgage rate was averaging nearly 5%. (To be exact, 4.9%.)

Rates on 15-year mortgages — which are popular among homeowners who refinance — have fallen to an average 3.05%, from 3.14% the previous week. A year ago, those rates were averaging 4.29%, Freddie Mac says.

It's an excellent time to do a cash-out refi, Rosenbaum says, "to pay off existing debt by cashing out of the equity many homeowners have built. There are many opportunities and options available."

You can compare refinance offers from multiple banks by visiting LendingTree.

On 5/1 adjustable-rate mortgages — which are level for five years and then can "adjust" up or down each year — the current average initial rate is 3.35%. That's down from 3.38% in early October and much lower than the 4.07% borrowers were charged a year ago.

Use this calculator to see the kind of monthly payment you can expect from today's low mortgage rates:

Report: Rates should be even lower

Office worker attending and showing contract trying to convince to a suspicious couple sitting in a desk at office
Antonio Guillem / Shutterstock
Some customers are disappointed by today's mortgage rates.

Mortgage rates may be at eye-poppingly low levels, but they could be lower still, reports The Wall Street Journal.

Rates on home loans tend to track the interest on 10-year U.S. Treasury notes. Lately, those bond yields have been falling faster than mortgage rates — in fact, the spread between the two is the widest in over seven years.

Lenders haven't felt the need to make deep cuts in their rates because demand for mortgages has been so strong. Applications for refinance loans are up by a staggering 163% from a year ago, the Mortgage Bankers Association reports.

Don't miss out

Some borrowers hoping for extra-puny mortgage rates have been leaving lending offices disappointed.

“A lot of people hear stories about where rates should be and come in with unreasonable expectations," New York mortgage broker Melissa Cohn told The Wall Street Journal.

Don't let yourself miss out on a good thing in hopes rates will get even better, advises Rosenbaum, of GuardHill Financial.

"With the ability to capitalize on many of the great current opportunities available, I feel the potential benefit now outweighs taking the chance of losing it in order to attain something else that may or may not happen," he says.

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