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Later today, the Federal Reserve is expected to announce that it will hold the federal funds rate steady for now. This probably won't have too much of an impact on mortgage rates, but commentary coming out of the meeting will likely cause some movement.
Average 30-year mortgage rates are down a bit from a week ago, and they could trend down further if Fed officials suggest that they may soon achieve their goal of getting inflation down to 2%.
Rates are expected to fall throughout the next couple of years, but it could take a while before we see a substantial improvement in affordability. In their latest forecast, Fannie Mae researchers predicted that rates will drop to 6.7% by the end of 2024.
If you're thinking about buying a home, you might get a better deal on your mortgage by waiting a year or two. This would also give you time to save for a larger down payment, allowing you to snag an even lower mortgage rate.
Current Mortgage Rates
Current Refinance Rates
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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.
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 Decrease Slightly (-0.05%)
The current average 30-year fixed mortgage rate is 7.63%, down five basis points since this time last week. This rate is up quite a bit compared to a month ago, when it was 7.28%.
At 7.63%, you'll pay $712 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 Go Down (-0.12%)
The average 20-year fixed mortgage rate is down 12 basis points from last week and sits at 7.41%. This time last month, the rate was 7.10%.
With a 7.41% rate on a 20-year term, your monthly payment will be $800 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 Barely Inch Down (-0.02%)
The average 15-year mortgage rate is 6.87%, nearly flat compared to last week. But it's up from this time last month, when it was 6.52%.
With a 6.87% rate on a 15-year term, you'll pay $892 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 Drop (-0.38%)
The 7/1 adjustable mortgage rate is down quite a bit compared to last week, currently at 7.43%. It was 7.63% a month ago.
At 7.43%, your monthly payment would be $694 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 Somewhat (-0.06%)
The average 5/1 ARM rate is 7.32%, a six-point decrease from last week. This rate is flat compared to where it was a month ago, when it was 7.32%.
Here's how a 7.32% rate would affect you for the first five years: You'd pay $687 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Tick Down (-0.05)
The average 30-year FHA interest rate is 6.80% today, which is a tiny bit lower than it was a week ago. This rate was 6.04% a month ago.
At 6.80%, you would pay $652 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 Hold Steady (-0.02%)
The current VA mortgage rate is 6.95%, just two basis points down from this time last week. VA rates spiked above 7% for the first time last week and have remained around this benchmark. This rate was 6.53% a month ago.
With a 6.95% rate, your monthly payment would be $662 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Inch Down (-0.06%)
The average 30-year refinance rate is 7.84%, which is a tiny bit lower than it was last week. It's up a bit compared to a month ago, when it was 7.62%.
Here's how a 7.84% rate would affect your monthly payments: You'd pay $723 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 (+0.08%)
The current 20-year fixed refinance rate is 7.60%, which is up compared to a week ago. This rate was 7.27% this time last month.
A 7.60% rate on a 20-year term will result in a $812 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Are Down (-0.18%)
The average 15-year fixed refinance rate is 7.01%, which is 18 points lower than it was it was last week. This rate is up compared to this time in September, when it was at 6.84%.
A 7.01% rate on a 15-year term means you'll pay $899 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 Increase (+0.43%)
The average 7/1 ARM refinance rate is 7.68%, up somewhat from this time last week. A month ago, it was higher at 8.12%.
Refinancing into a 7/1 ARM with a 7.68% rate means your monthly payment toward principal and interest will be $712 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 Plummet (-0.51%)
The 5/1 ARM refinance rate is 7.49%, down significantly from last week. It's also down from this time last month, when it was 7.85%.
A 7.49% rate will result in a monthly payment of $723 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 Essentially Unchanged (-0.02%)
The 30-year FHA refinance rate is 7.17%, which is just two basis points down compared to last week. This rate was 5.92% this time last month.
A 7.17% refinance rate would lead to a $677 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Tick Up (+0.10%)
The average 30-year VA refinance rate is 7.21%, which is up 10 points from last week. This rate was 6.80% a month ago.
At 7.21%, your new monthly payment would be $679 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 risen throughout 2023, and they're higher than they were in November 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.