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Average 30-year mortgage rates trended down a bit this week, though they're still significantly elevated compared to where they were a month ago. As inflation falls, mortgage rates are expected to fall, too. Most major forecasts currently predict that rates will trend down throughout 2024 and 2025.
Mortgage rates have climbed this year in response to high inflation and rate hikes from the Federal Reserve. But Fed officials have started signaling that the central bank may be done raising rates. Most recently, this came from Philadelphia Fed President Patrick Harker in remarks he made to the Delaware State Chamber of Commerce on Friday.
"Absent a stark turn in what I see in the data and hear from contacts ... I believe that we are at the point where we can hold rates where they are. Look, we did a lot, and we did it very fast," Harker said.
An end to rate hikes would likely keep mortgage rates from increasing further and could even allow them to recede a bit, which is welcome news for hopeful homebuyers.
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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.
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Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Inch Down a Tiny Bit (-0.04%)
The current average 30-year fixed mortgage rate is 7.45%, down four basis points since this time last week. But this rate is much higher compared to a month ago, when it was 7.05%.
At 7.45%, you'll pay $696 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 Tick Down (-0.03%)
The average 20-year fixed mortgage rate is down just three basis points from last week and sits at 7.18%. This time in September, the rate was 6.81%.
With a 7.18% rate on a 20-year term, your monthly payment will be $786 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 Essentially Flat (-0.01%)
The average 15-year mortgage rate is 6.63%, a single basis point decrease from last week. But it's up from this time last month, when it was 6.28%.
With a 6.63% rate on a 15-year term, you'll pay $878 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 Go Up (+0.12%)
The 7/1 adjustable mortgage rate is up 12 percentage points from last week, currently at 7.58%. It was 7.45% a month ago.
At 7.58%, your monthly payment would be $705 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 Increase (+0.12%)
The average 5/1 ARM rate is 7.20%, a 12-point increase from last week. This time in September, this rate was a bit higher at 7.29%.
Here's how a 7.20% rate would affect you for the first five years: You'd pay $679 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Remain Flat (No Change)
The average 30-year FHA interest rate is 6.75% today, which is exactly where it was a week ago. This rate was 6.04% this time last month.
At 6.75%, you would pay $649 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 (+0.07%)
The current VA mortgage rate is 6.75%, 7 basis points up from this time last week. It was 6.13% this time last month.
With a 6.75% rate, your monthly payment would be $649 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Inch Up (+0.05%)
The average 30-year refinance rate is 7.70%, which is only a little bit higher than it was last week. It's up significantly compared to a month ago, when it was 7.23%.
Here's how a 7.70% rate would affect your monthly payments: You'd pay $713 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 Are a Bit Higher (+0.13%)
The current 20-year fixed refinance rate is 7.26%, which is just a little higher compared to a week ago. This rate was 6.81% this time in September.
A 7.26% rate on a 20-year term will result in a $791 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Fall (-0.39%)
The average 15-year fixed refinance rate is 6.43%, which is significantly lower than it was it was last week. This rate is down a bit compared to this time in September, when it was at 6.75%.
A 6.43% rate on a 15-year term means you'll pay $867 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 Rise (+0.32%)
The average 7/1 ARM refinance rate is 7.82%, up from this time last week. A month ago, it was 7.76%.
Refinancing into a 7/1 ARM with a 7.82% rate means your monthly payment toward principal and interest will be $721 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 Slightly Inch Up (+0.05%)
The 5/1 ARM refinance rate is 7.56%, up a tiny bit from last week. It's nearly flat compared to this time last month, when it was 7.54%.
A 7.56% rate will result in a monthly payment of $703 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 Hold Steady (No Change)
The 30-year FHA refinance rate is 6.50%, which is flat compared to last week. This rate was 5.92% this time 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 Rates Tick Up (+0.24%)
The average 30-year VA refinance rate is 6.69%, which is up from last week. This rate was 6.35% a month ago.
At 6.69%, your new monthly payment would be $645 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 October 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 7% to 8% 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.