Today's mortgage and refinance rates: May 27, 2021 | Rates shift

If you buy through our links, we may earn money from affiliate partners. Learn more.

Since last Thursday, most mortgage and refinance rates are up, including average rates for government-backed mortgages.

Rates remain steady compared to last month, and you shouldn’t worry about a significant increase in rates anytime soon. Mortgage rates are often low when an economy is struggling. The coronavirus pandemic has damaged the US economy, and it’s taking a while for the country to recover.

A fixed-rate mortgage is likely a better deal than an adjustable-rate mortgage right now. Fixed rates are starting lower than adjustable rates, and you won’t gamble on your rate going up in a few years.

Popular Articles

Average 401k balance

Mortgage rates for Thursday, May 27, 2021

Mortgage typeAverage rate today
15-year fixed2.44%
30-year fixed3.30%
7/1 ARM4.10%
10/1 ARM3.71%
30-year FHA2.85%
VA mortgage loan2.75%

Conventional rates from; government-backed rates from RedVentures.

Learn more and get offers from multiple lenders »

You’re able to secure a 15-year fixed rate, 30-year FHA rate, or VA rate for under 3% today.

Rates for conventional mortgages, which you might think of as “standard mortgages,” are already low. But you can often get an even lower rate with a government-backed mortgage through the FHA or VA, depending on which term length you’re after. Government mortgages are solid options if you’re eligible.

Refinance rates for Wednesday, May 26, 2021

Mortgage typeAverage rate today
15-year fixed2.63%
30-year fixed3.67%
7/1 ARM4.34%
10/1 ARM4.43%
30-year FHA2.85%
VA mortgage loan2.77%

Conventional rates from; government-backed rates from RedVentures.

Compare offers from refinancing lenders »

Currently, you can get the best refinance rate on a 15-year fixed mortgage, and you can still lock in a 30-year fixed rate under 4%. 

Ways to lock in a low mortgage rate

Mortgage rates are at striking lows, so you may want to get a fixed-rate mortgage today.

At the same time, you probably don’t need to hurry. Mortgage rates will probably remain low for the near future, so you likely have time to boost your finances. Lenders will give you lower rates when you have a solid financial profile. 

To get the lowest mortgage rate you can, think about working to improve your financial situation. Here are some tips for locking in a good mortgage rate:

  • Improve your credit score by making timely payments, paying down debt, or letting your credit age. The higher your score, the lower interest rate a lender will probably offer you. 
  • Save more for a down payment. The smallest down payment you need depends on which type of mortgage you want. But a higher down payment often results in a better rate.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Many lenders want you to have a DTI ratio of 36% or less (although it depends on the type of mortgage). To improve your ratio, pay down debts or look for ways to boost your income.

You can get a low mortgage rate if you’re in a good financial situation. But if you aren’t, you have a lot of time to improve your finances to snag a better rate.

Mortgage and refinance rates trends

Mortgage rate trends

Mortgage typeAverage rate todayAverage rate last weekAverage rate last month
15-year fixed2.44%2.45%2.44%
30-year fixed3.30%3.35%3.31%
7/1 ARM4.10%3.68%4.05%
10/1 ARM3.71%3.65%3.85%
30-year FHA2.85%2.73%2.90%
VA mortgage loan2.75%2.72%2.70%

Most mortgage rates have gone up since last Thursday. Rates on fixed mortgages and VA mortgages have stayed relatively flat, while adjustable rates have risen more substantially. 

Refinance rate trends

Mortgage typeAverage rate todayAverage rate last weekAverage rate last month
15-year fixed2.63%2.65%2.65%
30-year fixed3.67%3.76%3.64%
7/1 ARM4.34%4.21%4.46%
10/1 ARM4.43%4.31%4.51%
30-year FHA2.85%2.72%2.87%
VA mortgage loan2.77%2.73%2.69%

Since last Thursday, refinance rates on fixed mortgages have dipped slightly, while rates on adjustable and government-backed mortgages have gone up. 

15-year fixed mortgage rates

With a 15-year fixed mortgage, you’ll pay down your mortgage over a decade and a half, and you’ll pay a set interest rate the whole time. 

You’ll pay more per month with a 15-year term than a 30-year term because you’ll pay off the same mortgage principal over less time. 

On the bright side, it will cost less to take out a 15-year fixed mortgage than a 30-year fixed mortgage. You’ll pay down the mortgage in half the time and get a lower interest rate.

30-year fixed mortgage rates

If you get a 30-year fixed mortgage, you’ll pay a set rate for 30 years. A 30-year fixed mortgage has a higher interest rate than a 15-year fixed mortgage.

You’ll make smaller monthly payments with a 30-year term than with a 15-year term because you’re dividing your payments over an extended period.

On the other hand, you’ll pay more in interest with a 30-year fixed mortgage than with a shorter term, as you’re paying a higher interest rate for more years. 


An adjustable-rate mortgage, commonly known as an ARM, sets your rate for an agreed-upon amount of time. Then your rate will fluctuate regularly. For instance, your rate will remain the same for the first seven years with a 7/1 ARM, then change annually.

ARM rates are at all-time lows now, but fixed rates are even lower. You may want to lock in a low rate with a fixed mortgage. You won’t chance your rate going up down the line, as you would with an ARM.

If you’re considering getting an ARM, ask your lender what your rates would be if you chose a fixed-rate mortgage versus an ARM.

Government-backed mortgages

We’re also giving you rates for FHA and VA mortgages, two kinds of government-backed mortgages.

Government mortgages are backed by federal agencies. The government pays the lender if you default on your payments, so these loans are safer for lenders than conventional mortgages.

As a result, the companies have more lax requirements for your credit score, debt-to-income ratio, or down payment. Government mortgages also have lower interest rates, so these mortgages can be great deals if you qualify. Here are your options:

  • FHA mortgage: FHA loans are largely for people with lower credit scores. But the rules about who is eligible are more lenient than with VA and USDA loans.
  • VA mortgage: You might be eligible if you’re an active military member or veteran.
  • USDA mortgage: You’re qualified if you live in a rural area and fall under a certain income limit.

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Rhode Island
South Carolina
South Dakota
Washington DC
West Virginia

About the authors

Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, and lending. She is also a Certified Educator in Personal Finance (CEPF). Over her five years of covering personal finance, she has written extensively about ways to navigate loans.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, bank reviews, and loans. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

Best Mortgage Rates Today: Thursday May 27, 2021

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Source: Read Full Article