30-year loan rates down slightly, 15-year up

The average mortgage interest rate for a standard 30-year fixed mortgage is 6.88%, decreasing 0.02 percentage points from last week’s 6.90%, according to Bankrate.

Thirty-year fixed mortgages are the most commonly sought out loan term. A 30-year fixed rate mortgage has a lower monthly payment than a 15-year one, but usually has a higher interest rate.

The average mortgage interest rate for a standard 15-year fixed mortgage is 6.20%, increasing 0.04 percentage points from last week’s 6.16%, according to Bankrate.

Fifteen-year fixed rate mortgages come with a higher monthly payment compared to its 30-year counterpart. However, usually interest rates are lower and you will pay less total interest because you are paying off your loan at a faster rate.

The average rate on a 5/1 adjustable rate mortgage (ARM) is 6.34%, increasing 0.02 percentage points from last week’s 6.32%. With an ARM, you will most often get a lower interest rate than a fixed mortgage for say, the first five years.