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Average 30-year mortgage rates are currently elevated compared to where they were a month ago, but they could be a bit lower by the end of October.
The latest inflation data suggests that price growth may be finally nearing the Federal Reserve's 2% target. As inflation slows and the Fed is able to stop hiking rates — and, ultimately, start cutting them — mortgage rates should start trending down.
In its latest forecast, the Mortgage Bankers Association suggested that mortgage rates could fall to 6.3% by the end of 2023, and reach 5.4% by the end of 2024.
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 a Bit (+0.08%)
The current average 30-year fixed mortgage rate is 7.32%, up just 8 basis points since this time last week. This rate is much higher compared to a month ago, when it was 6.94%.
At 7.32%, you'll pay $687 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 Barely Inch Up (+0.05%)
The average 20-year fixed mortgage rate is up 5 basis points from last week and sits at 6.84%. This time in August, the rate was 6.63%.
With a 6.84% rate on a 20-year term, your monthly payment will be $766 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 Very Slightly (+0.04%)
The average 15-year mortgage rate is 6.53%, a 4-basis-point increase from last week. It's also up a bit from this time last month, when it was 6.35%.
With a 6.53% rate on a 15-year term, you'll pay $873 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 Plummet (-0.79%)
The 7/1 adjustable mortgage rate is down dramatically from last week, currently at 6.88%. It was 7.25% 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 Down a Quarter of a Percentage Point (-0.25%)
The average 5/1 ARM rate is 7.29%, a quarter-point decrease from last week. This time in August, this rate was a bit lower at 7.14%.
Here's how a 7.29% rate would affect you for the first five years: You'd pay $685 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 6.04% today, which is the same as it was last week. This rate was 6.44% this time last month.
At 6.04%, you would pay $602 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 (+0.12%)
The current VA mortgage rate is 6.49%, 12 basis points up from this time last week. It was 6.12% this time last month.
With a 6.49% rate, your monthly payment would be $631 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Go Up (+0.12%)
The average 30-year refinance rate is 7.55%, which is a little bit higher than it was last week. It's also up compared to a month ago, when it was 7.24%.
Here's how a 7.55% rate would affect your monthly payments: You'd pay $703 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 Barely Tick Down (-0.04%)
The current 20-year fixed refinance rate is 7.04%, which is just a bit lower compared to a week ago. This rate was 6.79% this time in August.
A 7.04% rate on a 20-year term will result in a $778 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Increase Very Slightly (+0.04)
The average 15-year fixed refinance rate is 6.53%, which is just a little higher than it was it was last week. This rate is essentially flat compared to this time in August, when it was at 6.50%.
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 Fall Dramatically (-0.72%)
The average 7/1 ARM refinance rate is 7.38%, down quite a bit from this time last week. A month ago, it was 7.21%.
Refinancing into a 7/1 ARM with a 7.38% rate means your monthly payment toward principal and interest will be $691 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 Somewhat (+0.11%)
The 5/1 ARM refinance rate is 7.56%, up from last week. It's also up significantly compared to this time last month, when it was 6.44%.
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 Stay the Same (no change)
The 30-year FHA refinance rate is 5.92%, which is flat compared to last week. This rate was 6.44% this time last month.
A 5.92% refinance rate would lead to a $594 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Rise (+0.19%)
The average 30-year VA refinance rate is 6.75%, which is up from last week. This rate was 6.47% a month ago.
At 6.75%, your new monthly payment would be $649 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 September 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.