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Mortgage rates spiked on Wednesday and remain elevated today. Average 30-year mortgage rates are currently around 21 basis points higher than they were a week ago.
Though mortgage rates are up today, they could drop in the coming weeks depending on how the latest economic data shakes out. If next week's Consumer Price Index report shows that inflation is continuing to slow, mortgage rates could trend back down.
High rates have seriously slowed interest in homebuying this year. According to the Mortgage Bankers Association's latest Weekly Mortgage Applications Survey, mortgage applications to purchase a home decreased 3% last week from the week before and are currently the lowest they've been in a month.
"The purchase index decreased for the third straight week to its lowest level since the beginning of June and remains 26% behind last year's levels," Joel Kan, MBA's vice president and deputy chief economist, said in the press release. "The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7 percent are crimping affordability for many potential homebuyers."
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 (+0.21%)
The current average 30-year fixed mortgage rate is 6.83%, up 21 basis points since this time last week. This rate is also significantly higher compared to where it was a month ago, when it was 6.56%.
At 6.83%, you'll pay $654 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 Climb (+0.39%)
The average 20-year fixed mortgage rate is up from last week and sits at 6.47%. This time in July, the rate was 6.34%.
With a 6.47% rate on a 20-year term, your monthly payment will be $744 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 Go Up (+0.20%)
The average 15-year fixed mortgage rate is 6.09%, a 20-basis-point increase from last week. This time in July, the rate was lower at 5.92%.
With a 6.09% rate on a 15-year term, you'll pay $849 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 Increase (+0.15%)
The 7/1 adjustable mortgage rate is up somewhat since last week, currently at 6.91%. It was 6.77% a month ago.
At 6.91%, your monthly payment would be $659 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 Go up a Bit (+0.16%)
The average 5/1 ARM rate is 6.88%, an increase from last week. This time in July, this rate was lower at 6.56%.
Here's how a 6.88% rate would affect you for the first five years: You'd pay $657 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates are Flat (no change)
The average 30-year FHA interest rate is 5.59% today, which is the same as it was last week. This rate is higher than it was a month ago, when it sat at 5.46%.
At 5.59%, you would pay $573 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 Jump (+0.35%)
The current VA mortgage rate is 6.15%, a significant increase from this time last week. It was 5.97% this time last month.
With a 6.15% rate, your monthly payment would be $609 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-year Fixed Refinance Rates Hold Steady (no change)
The average 30-year refinance rate is 7.29%, which is exactly where it was last week. It's up compared to a month ago, when it was 6.91%.
Here's how a 7.29% rate would affect your monthly payments: You'd pay $685 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 Rates Go up a Bit (+0.19%)
The current 20-year fixed refinance rate is 6.84%, which is higher than it was last week. It was 6.75% this time in July.
A 6.84% rate on a 20-year term will result in a $766 monthly payment toward principal and interest for every $100,000 you borrow.
15-year Fixed Refinance Rates Inch Up (+0.07%)
The average 15-year fixed refinance rate is 6.53%, just 7 basis points higher than it was last week. This rate is also currently higher than it was this time in July, when it was at 6.25%.
A 6.53% rate on a 15-year term means you'll pay $873 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 Plummet (-0.66%)
The average 7/1 ARM refinance rate is 6.44%, down quite a bit from this time last week. A month ago, it was 7.24%.
Refinancing into a 7/1 ARM with a 6.44% rate means your monthly payment toward principal and interest will be $628 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 Increase Nearly Half a Percentage Point (+0.43%)
The 5/1 ARM refinance rate is 7.40%, up from last week. It's also up significantly compared to this time last month, when it was 6.76%.
A 7.40% rate will result in a monthly payment of $692 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 Stay the Same (no change)
The 30-year FHA refinance rate is 5.58%, which is flat compared to last week. This rate was 5.46% this time last month.
A 5.58% refinance rate would lead to a $573 monthly payment toward the principal and interest per $100,000 borrowed.
30-year VA Refinance Rates Barely Tick Up (+0.03%)
The average 30-year VA refinance rate is 6.38%, which is up a tiny bit from last week. This rate was 6.06% a month ago.
At 6.38%, your new monthly payment would be $624 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
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 July 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.