Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates have dropped substantially across the board, with 30-year mortgage rates back down to levels we haven’t seen since late September.
Rates have trended down over the past few days in response to economic data showing that the economy is cooling. A cooling economy is good news for mortgage rates because it means that the Federal Reserve may decide it doesn’t need to raise the federal funds rate again this year or next.
Once the Fed backs off from its fight against inflation, mortgage rates should start falling further. And if the central bank cuts rates next year, we’ll likely see an even more substantial drop.
This is all good news for those who are planning 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 the spring of 2024.
Current Mortgage Rates
| Mortgage type | Average rate today |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Refinance Rates
| Mortgage type | Average rate today |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
%
%
Your estimated monthly payment
$418,177
$275,520
$42,657
- 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 Drop Drastically (-0.53%)
The current average 30-year fixed mortgage rate is 7.08%, down a whopping 53 basis points since this time last week. This rate is also down quite a bit compared to a month ago, when it was 7.49%.
At 7.08%, you’ll pay $671 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 Plunge (-0.56%)
The average 20-year fixed mortgage rate is down 56 basis points from last week and sits at 6.82%. This time last month, the rate was 7.21%.
With a 6.82% rate on a 20-year term, your monthly payment will be $765 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 Go Down (-0.35%)
The average 15-year mortgage rate is 6.44%, down quite a bit compared to last week. It’s also down from this time last month, when it was 6.64%.
With a 6.44% rate on a 15-year term, you’ll pay $868 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 (-0.29%)
The 7/1 adjustable mortgage rate is down quite a bit compared to last week, currently at 7.07%. It was 7.46% a month ago.
At 7.07%, your monthly payment would be $670 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 Decrease Somewhat (-0.20%)
The average 5/1 ARM rate is 7.15%, a 20-point decrease from last week. This rate is down compared to where it was a month ago, when it was 7.32%.
Here’s how a 7.15% rate would affect you for the first five years: You’d pay $675 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Drop Substantially (-0.47%)
The average 30-year FHA interest rate is 6.45% today, which is nearly a half a percentage point lower than it was a week ago. This rate was 6.75% a month ago.
At 6.45%, you would pay $629 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 Way Down (-0.56%)
The current VA mortgage rate is 6.38%, 56 basis points down from this time last week. This rate was 6.68% a month ago.
With a 6.38% rate, your monthly payment would be $624 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.50%)
The average 30-year refinance rate is 7.29%, which is significantly lower than it was last week. It’s also down quite a bit compared to a month ago, when it was 7.65%.
Here’s how a 7.29% rate would affect your monthly payments: You’d pay $685 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 Down (-0.38%)
The current 20-year fixed refinance rate is 6.93%, which is down compared to a week ago. This rate was 7.13% this time last month.
A 6.93% rate on a 20-year term will result in a $771 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Drop (-0.28%)
The average 15-year fixed refinance rate is 6.67%, which is 28 points lower than it was it was last week. This rate is down a bit compared to this time in October, when it was at 6.82%.
A 6.67% rate on a 15-year term means you’ll pay $880 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 Down (-0.09%)
The average 7/1 ARM refinance rate is 7.38%, down a little bit from this time last week. A month ago, it was higher at 7.50%.
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 Tick Down (-0.28%)
The 5/1 ARM refinance rate is 7.66%, down significantly from last week. But it’s up a little bit from this time last month, when it was 7.51%.
A 7.66% rate will result in a monthly payment of $710 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 Fall Substantially (-0.62%)
The 30-year FHA refinance rate is 6.56%, which is down dramatically compared to last week, when this rate was above 7%. This rate was 6.50% this time last month.
A 6.56% refinance rate would lead to a $636 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Back Below 7% (-0.46%)
The average 30-year VA refinance rate is 6.58%, which is down from last week. This rate was 6.93% a month ago.
At 6.58%, your new monthly payment would be $637 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.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates have dropped substantially across the board, with 30-year mortgage rates back down to levels we haven’t seen since late September.
Rates have trended down over the past few days in response to economic data showing that the economy is cooling. A cooling economy is good news for mortgage rates because it means that the Federal Reserve may decide it doesn’t need to raise the federal funds rate again this year or next.
Once the Fed backs off from its fight against inflation, mortgage rates should start falling further. And if the central bank cuts rates next year, we’ll likely see an even more substantial drop.
This is all good news for those who are planning 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 the spring of 2024.
Current Mortgage Rates
| Mortgage type | Average rate today |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Refinance Rates
| Mortgage type | Average rate today |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
%
%
Your estimated monthly payment
$418,177
$275,520
$42,657
- 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 Drop Drastically (-0.53%)
The current average 30-year fixed mortgage rate is 7.08%, down a whopping 53 basis points since this time last week. This rate is also down quite a bit compared to a month ago, when it was 7.49%.
At 7.08%, you’ll pay $671 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 Plunge (-0.56%)
The average 20-year fixed mortgage rate is down 56 basis points from last week and sits at 6.82%. This time last month, the rate was 7.21%.
With a 6.82% rate on a 20-year term, your monthly payment will be $765 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 Go Down (-0.35%)
The average 15-year mortgage rate is 6.44%, down quite a bit compared to last week. It’s also down from this time last month, when it was 6.64%.
With a 6.44% rate on a 15-year term, you’ll pay $868 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 (-0.29%)
The 7/1 adjustable mortgage rate is down quite a bit compared to last week, currently at 7.07%. It was 7.46% a month ago.
At 7.07%, your monthly payment would be $670 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 Decrease Somewhat (-0.20%)
The average 5/1 ARM rate is 7.15%, a 20-point decrease from last week. This rate is down compared to where it was a month ago, when it was 7.32%.
Here’s how a 7.15% rate would affect you for the first five years: You’d pay $675 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Drop Substantially (-0.47%)
The average 30-year FHA interest rate is 6.45% today, which is nearly a half a percentage point lower than it was a week ago. This rate was 6.75% a month ago.
At 6.45%, you would pay $629 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 Way Down (-0.56%)
The current VA mortgage rate is 6.38%, 56 basis points down from this time last week. This rate was 6.68% a month ago.
With a 6.38% rate, your monthly payment would be $624 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.50%)
The average 30-year refinance rate is 7.29%, which is significantly lower than it was last week. It’s also down quite a bit compared to a month ago, when it was 7.65%.
Here’s how a 7.29% rate would affect your monthly payments: You’d pay $685 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 Down (-0.38%)
The current 20-year fixed refinance rate is 6.93%, which is down compared to a week ago. This rate was 7.13% this time last month.
A 6.93% rate on a 20-year term will result in a $771 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Drop (-0.28%)
The average 15-year fixed refinance rate is 6.67%, which is 28 points lower than it was it was last week. This rate is down a bit compared to this time in October, when it was at 6.82%.
A 6.67% rate on a 15-year term means you’ll pay $880 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 Down (-0.09%)
The average 7/1 ARM refinance rate is 7.38%, down a little bit from this time last week. A month ago, it was higher at 7.50%.
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 Tick Down (-0.28%)
The 5/1 ARM refinance rate is 7.66%, down significantly from last week. But it’s up a little bit from this time last month, when it was 7.51%.
A 7.66% rate will result in a monthly payment of $710 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 Fall Substantially (-0.62%)
The 30-year FHA refinance rate is 6.56%, which is down dramatically compared to last week, when this rate was above 7%. This rate was 6.50% this time last month.
A 6.56% refinance rate would lead to a $636 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Back Below 7% (-0.46%)
The average 30-year VA refinance rate is 6.58%, which is down from last week. This rate was 6.93% a month ago.
At 6.58%, your new monthly payment would be $637 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.
American Dollar Exchange Rate