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Mortgage rates fell dramatically late last week and are holding steady today.
Over the past seven days, average 30-year fixed mortgage rates have fallen more than 60 basis points. To put that into perspective, the average borrower who gets a mortgage today will pay more than $100 less on their monthly mortgage payment than a borrower who locked in their rate a week ago.
The next move in rates depends on the economy. Inflation is finally showing signs of easing and the Federal Reserve has signaled that it may begin to slow its pace of raising the fed funds rate in future meetings. But Fed officials have repeatedly signaled they are not ready to stop rising rates, so mortgage rates could rise further in December or early 2023 as the central bank continues to trying to control price growth.
Mortgage rates today
| Type of mortgage | Average rate today |
Mortgage refinance rates today
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mortgage calculator
Use our free mortgage calculator to see the impact of today’s mortgage rates on your monthly payments. By plugging in different rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.
mortgage calculator
$1,161
Your estimated monthly payment
- pay one 25% a higher down payment would save you $8,916.08 on interest charges
- Lower the interest rate by 1% would save you $51,562.03
- Pay an extra fee $500 each month would reduce the term of the loan by 146 month
Click “More Details” for tips on how to save money on your long-term mortgage.
30-year fixed mortgage rates
The current average 30-year fixed mortgage rate is 7.08%, according to Freddie Mac. This is an increase from the previous week.
The 30-year fixed rate mortgage is the most common type of mortgage. 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.
The 30-year long term allows you to spread your payments out over a long period, which means you can keep your monthly payments lower and more manageable. The tradeoff is that you’ll get a higher rate than with shorter terms or adjustable rates.
15-year fixed mortgage rates
The average 15-year fixed mortgage rate is 6.38%, an increase from the previous week, according to data from Freddie Mac. The last time this rate was above 6% was in 2008.
If you’re looking for 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 right for you. Since 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 will have a higher monthly payment than you would with a longer term.
5/1 Adjustable Mortgage Rates
The average 5/1 adjustable mortgage rate is 6.06%, an increase from the previous week. It is also the first time that this rate has exceeded 6% since 2008.
Variable rate mortgages can seem very attractive to borrowers when rates are high, as rates on these mortgages are generally lower than fixed mortgage rates. A 5/1 ARM is a 30 year mortgage. For the first five years, you will have a fixed rate. After that, your rate will adjust once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than you started with.
If you’re considering an ARM, make sure you understand how much your rate might increase each time it adjusts and how much it might ultimately increase over the life of the loan.
Are mortgage rates increasing?
Mortgage rates started to recover from historic lows in the second half of 2021 and have risen significantly so far in 2022.
Over the past 12 months, the consumer price index has increased by 7.7%. The Federal Reserve has been struggling to keep inflation in check and is expected to raise the target federal funds rate two more times this year, following increases at its previous five meetings.
Although not directly tied to the fed funds rate, mortgage rates are sometimes pushed higher due to Fed rate hikes and investors’ expectations of the impact of those hikes on the economy. .
Inflation remains high, but has started to slow, which is a good sign for mortgage rates and the economy in general.
How can I find personalized mortgage rates?
Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your down payment amount, zip code and credit score. The resulting rate is not fixed, but it can give you an idea of what you will pay.
If you’re ready to start buying homes, you can get pre-approved from a lender. The lender makes a firm credit application and reviews your financial details to lock in a mortgage rate.
Are HELOCs a good idea right now?
Many homeowners have gained great net worth over the past couple of years as home prices have risen at an unprecedented rate. But since rates are so high today, tapping into that equity can be costly.
For homeowners looking to leverage the value of their home to cover a big purchase, like a home improvement, a home equity line of credit (HELOC) can still be a good option.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similar to a credit card in that you borrow what you need rather than getting the full amount you borrow in one lump sum.
Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than with a home equity loan or cash refinance. Just keep in mind that HELOC rates are variable, so if rates start to increase further, yours will likely increase as well.
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