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Both fixed and adjustable mortgage rates are down this week in response to slowing inflation. Average 30-year mortgage rates are down more than 60 basis points from a month ago, and they could fall further in the coming months.
Positive economic data showing that inflation is slowing has caused mortgage rates to trend down. It’s likely they’ll fall further as inflation continues to come down and the Federal Reserve is able to cut the federal funds rate.
This is all good news if you’re hoping to buy a home soon. If you’re waiting for better rates before you start shopping for a home, you may finally have an opportunity to jump into the market by the time homebuying season starts in spring 2024.
Current Mortgage Rates
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Current Refinance Rates
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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.
Mortgage Calculator
$1,161
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
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 Are Going Down (-0.30%)
The current average 30-year fixed mortgage rate is 6.95%, down 30 basis points since this time last week. This rate is also down quite a bit compared to a month ago, when it was 7.57%.
At 6.95%, you’ll pay $662 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 Inch Down (-0.09%)
The average 20-year fixed mortgage rate is down nine basis points from last week and sits at 6.66%. This time last month, the rate was 7.35%.
With a 6.66% rate on a 20-year term, your monthly payment will be $755 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 Fall (-0.27%)
The average 15-year mortgage rate is 6.28%, down from last week. It’s also down from this time last month, when it was 6.64%.
With a 6.28% rate on a 15-year term, you’ll pay $859 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 Sharply (-0.89%)
The 7/1 adjustable mortgage rate is close to a full percentage point lower than it was a week ago, currently at 6.65%. It’s down since this time last month, when it was at 7.06%.
At 6.65%, your monthly payment would be $642 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 Barely Go Down (-0.09%)
The average 5/1 ARM rate is 7.16%, a nine-point decrease from last week. It’s also lower than it was a month ago, when it was 7.34%.
Here’s how a 7.16% rate would affect you for the first five years: You’d pay $676 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Dip (-0.32%)
The average 30-year FHA interest rate is 6.31% today, which is lower than it was a week ago. This rate was 6.75% a month ago.
At 6.31%, you would pay $620 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 Decrease (-0.25%)
The current VA mortgage rate is 6.23%, 25 basis points down from this time last week. This rate was 6.76% a month ago.
With a 6.23% rate, your monthly payment would be $614 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.28%)
The average 30-year refinance rate is 7.33%, which is down from last week. It’s also down compared to a month ago, when it was 7.65%.
Here’s how a 7.33% rate would affect your monthly payments: You’d pay $688 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 Nearly Flat (-0.03%)
The current 20-year fixed refinance rate is 6.81%, which just three basis points down compared to a week ago. This rate was 7.17% this time last month.
A 6.81% rate on a 20-year term will result in a $764 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Go Down (-0.32%)
The average 15-year fixed refinance rate is 6.68%, which is lower than it was it was last week. This rate is just a bit lower compared to this time in October, when it was at 6.76%.
A 6.68% rate on a 15-year term means you’ll pay $881 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 Inch Up (+0.12%)
The average 7/1 ARM refinance rate is 7.08%, up just a little bit from this time last week. A month ago, it was higher at 7.55%.
Refinancing into a 7/1 ARM with a 7.08% rate means your monthly payment toward principal and interest will be $671 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 (-0.23%)
The 5/1 ARM refinance rate is 7.18%, down somewhat from last week. It’s also down quite a bit from this time last month, when it was 7.91%.
A 7.18% rate will result in a monthly payment of $677 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 Go Down (-0.23%)
The 30-year FHA refinance rate is 6.44%, which is down from last week. This rate was 6.50% this time last month.
A 6.44% refinance rate would lead to a $628 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Plummet (-0.97%)
The average 30-year VA refinance rate is 6.24%, which is almost a full percentage point below last week. This rate was 6.83% a month ago.
At 6.24%, your new monthly payment would be $615 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. 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.
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