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Mortgage rates are up across the board since this time last week, and since mid-July. Average 30-year mortgage rates are hovering around 7% today.
But there may good news ahead. The CME FedWatch Tool predicts that the Federal Reserve will not raise rates in its next meeting, which is in September. In fact, some experts think that the Fed will start to cut rates in 2024.
The Fed's rates aren't directly tied to mortgage rates — but in general, when it goes up, mortgage rates either stay high or increase too. So a flat or lower federal funds rate could mean mortgage rates will go down in late 2023 and into 2024. If you're considering buying but worried about rates, you might consider holding off for a few more months if you're able.
Current Mortgage Rates
Current Refinance Rates
Mortgage Calculator
Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
Click "More details" for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-year Fixed Mortgage Rates Increase (+0.28%)
The current average 30-year fixed mortgage rate is 7.03%, up 28 basis points since this time last week. This rate is also significantly higher than it was a month ago, when it was 6.43%.
At 7.03%, you'll pay $667 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.
20-year Fixed Mortgage Rates Rise (+0.18%)
The average 20-year fixed mortgage rate is up 10 basis points from last week and sits at 6.83%. This time in July, the rate was 5.68%.
With a 6.83% rate on a 20-year term, your monthly payment will be $765 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-year Fixed Mortgage Rates Tick Up (+0.07%)
The average 15-year fixed mortgage rate is 6.15%, a seven-basis-point increase from last week. This time in July, the rate was higher at 6.17%.
With a 6.15% rate on a 15-year term, you'll pay $852 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Soar (+0.52%)
The 7/1 adjustable mortgage rate is up since last week, currently at 6.88%. It was 6.40% a month ago.
At 6.88%, your monthly payment would be $657 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Climb (+0.37%)
The average 5/1 ARM rate is 7.08%, an increase from last week. This time in July, this rate was even lower at 6.53%.
Here's how a 7.08% rate would affect you for the first five years: You'd pay $671 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Spike (+0.68)
The average 30-year FHA interest rate is 6.27% today, which is up from last week. This rate is also higher than it was a month ago
At 6.27%, you would pay $617 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Go Up a Bit (+0.17%)
The current VA mortgage rate is 6.24%, an increase from this time last week. It was 5.64% this time last month.
With a 6.24% rate, your monthly payment would be $615 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-year Fixed Refinance Rates Rise (+0.27%)
The average 30-year refinance rate is 7.22%, which is higher than it was last week. It's also up compared to a month ago, when it was 6.80%.
Here's how a 7.22% rate would affect your monthly payments: You'd pay $680 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-year Fixed Refinance Spike (+0.92%)
The current 20-year fixed refinance rate is 7.72%, which is much higher compared to a week ago. It was 6.39% this time in July.
A 7.72% rate on a 20-year term will result in a $819 monthly payment toward principal and interest for every $100,000 you borrow.
15-year Fixed Refinance Rates Go Up (+0.24%)
The average 15-year fixed refinance rate is 6.51%, 24 basis points higher than it was last week. This rate is currently higher than it was this time in July, when it was at 6.38%.
A 6.51% rate on a 15-year term means you'll pay $872 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Hike (+0.63%)
The average 7/1 ARM refinance rate is 7.67%, up quite a bit from this time last week. A month ago, it was 6.89%.
Refinancing into a 7/1 ARM with a 7.67% rate means your monthly payment toward principal and interest will be $711 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Decrease (-0.18%)
The 5/1 ARM refinance rate is 7.24%, and it's the only rate that's down since last week. But it's up quite a bit compared to this time last month, when it was 6.61%.
A 7.24% rate will result in a monthly payment of $681 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-year FHA Refinance Rates Jump (+0.92)
The 30-year FHA refinance rate is 6.50%, which is drastically higher than last week and last month.
A 6.50% refinance rate would lead to a $632 monthly payment toward the principal and interest per $100,000 borrowed.
30-year VA Refinance Go Up (+0.20%)
The average 30-year VA refinance rate is 6.49%, which is up a beat from last week and even more since mid-July, when it sat at 6.03%.
At 6.49%, your new monthly payment would be $631 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Recently, mortgage rates have been going up. Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have been volatile so far in 2023, and they're higher than they were in August 2022.
As inflation starts to come down, mortgage rates will recede somewhat as well. If we experience a recession, rates may drop a little faster. But average 30-year fixed rates will likely remain somewhere in the 6% to 7% range in the near term.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.