Mortgage Rates Friday, July 21: Low Rates Keep Mortgage Payments Affordable

Finding the Right Mortgage, Mortgage Rates, Mortgages

Mortgage rates for 30-year fixed-rate loans fell by two basis points, 15-year fixed-rate loans dropped by three, and 5/1 ARMs held steady, according to NerdWallet’s survey of daily mortgage rates published by national lenders Friday morning.

It’s because of these low rates that housing is still considered affordable, according to the July Insight report from Freddie Mac released earlier this week. Despite home prices continuously rising since 2012 — on average, 6% per year, according to the report — and sluggish income increases, the low-mortgage-rate environment is keeping homeownership within reach for many Americans.

“Thanks to very low mortgage rates, monthly mortgage payments are affordable for the average household despite currently high house prices,” says Sean Becketti, Freddie Mac’s chief economist.

“However, hurdles to homeownership arise from the difficulty of finding a house to buy and of meeting the requirements to obtain a mortgage,” he added. “The supply of homes for sale is very tight, especially starter homes.”

MORTGAGE RATES TODAY, Friday, JULY 21:

(Change from 7/20)
30-year fixed: 4.05% APR (-0.02)
15-year fixed: 3.44% APR (-0.03)
5/1 ARM: 3.87% APR (NC)


NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Emily Starbuck Crone is a staff writer at NerdWallet, a personal finance website. Email: emily.crone@nerdwallet.com.