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Today’s Mortgage and Refinance Rates: January 28, 2021 | Rates Slip Closer to 3%


UPDATED: JANUARY 28, 2021 10:03 AM ET

Homeownership remains a major goal for many American despite the economic impact of the pandemic, with 1-in-6 planning on purchasing a home within the next two years.

Mortgage rates decreased for the second day in a row.

Today’s Mortgage Rates: 30-Year Fixed Loans, 15-Year Fixed Loans, and More

The average rate on a 30-year fixed-rate mortgage was 3.029% on Wednesday — down from 3.091% the previous day.

Mortgage Rate Chart
Loan type Average Rate
30-Year Fixed Loan 3.029%
15-Year Fixed Loan 2.279%
30-Year FHA Loan 2.892%
30-Year VA Loan 2.913%
30-Year Jumbo Loan 3.554%
Source: Money | Date: Jan. 27, 2021 | Rates assume a credit score of 700

Money’s daily mortgage rates show the average rate offered by over 8,000 lenders across the United States the previous day. They reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. The rates assume a 20% down payment and include discount points.

Freddie Mac’s benchmark Primary Mortgage Market Survey put mortgage rates at 2.73% with 0.7 points paid for the week ending January 28. That’s a slight drop of 0.04 percentage points from last week and 0.12 percentage points higher than the all-time low of 2.65%. The mortgage purchaser’s weekly survey reflects borrowers who put 20% down on conforming loans and have excellent credit.

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View Rates for January 28, 2021

How do I get the best mortgage rates?

Mortgage rates vary from state-to-state. On Wednesday, borrowers in Arkansas were quoted the lowest mortgage rates — at 2.988%. People looking for mortgages in Nevada saw the highest average rate at 3.166%.

Nationwide, borrowers with the highest credit scores, 740 and above, were quoted rates averaging 2.841%, while those with credit of 620 or below were shown rates of 4.081%.

You may be able to negotiate a better mortgage rate if you shop around or if you have other accounts with the lender. (To get started, take a look at Money’s picks for the best mortgage lenders.) Lately, some lenders have been hiking up advertised rates to keep demand in check, so you may be offered a lower rate if you reach out directly.

Today’s Mortgage Refinance Rates

Today’s survey also shows that the offered rate for a 30-year refinance for someone with a 740 credit score was 3.111% on Wednesday. In January 2020, the average mortgage rate (including fees) was around 3.8%.

Mortgage Refinance Rate Chart
Loan type Average Rate
30-Year Fixed Loan 3.111%
15-Year Fixed Loan 2.557%
30-Year FHA Loan 3.374%
30-Year VA Loan 3.374%
30-Year Jumbo Loan 3.486%
Source: Money | Date: Jan. 27, 2021 | Rates assume a credit score of 740

What else is happening in the housing market today

Seventeen percent of Americans who have not recently purchased a home say they are planning to do so within the next two years, according to a new survey commissioned by MyWalletJoy. Among those between the ages of 18-34, the percentage was even higher at 28%.

“Although it has been a tough year for Americans in all aspects of personal finance and big life moments, we are happy to see that optimism around buying a home is still very much alive,” said Yvette Ramos, a MyWalletJoy spokesperson.

The interest in buying a home has remained high despite the economic strain caused by the pandemic. While low interest rates have lured many buyers into the market already, others have been forced to re-evaluate how they would finance a purchase.

Over 52% of those surveyed are planning to make a down payment of between 3% and 19%, while only 14% plan to put down 20%. Forty-three percent are planning to use personal savings to finance the purchase, up from 42% in February of last year. Meanwhile, 18% plan on taking out an additional loan.

While homeownership is still a goal for many, the survey found that many potential home buyers feel they are not financially ready. Thirty-one percent of those surveyed cited a low salary as a reason for not planning on purchasing a home. Another 19% cited high home prices as the main reason they won’t be buying within the next two years.

Mortgage Tip of the Week

Buying a home can be daunting. Follow these expert tips to make the process easier.

Ralph DiBugnara, president of Home Qualified, a digital resource for buyers, sellers, and real estate agents, on what to look for in a virtual home tour:

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