Today’s Mortgage and Refinance Rates: June 22, 2023 | Rates Finally Drop

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After remaining elevated for most of June, mortgage rates appear to finally be heading back down. Average 30-year mortgage rates are now the lowest they’ve been in over a month.

Experts predict that rates will drop by the end of 2023, and lower rates can’t come soon enough for homebuyers struggling with affordability.

When rates increased in 2022, already-limited housing inventory shrunk even further as homeowners with low mortgage rates opted to stay in their homes rather than list them on the market and take on a higher rate with a new mortgage. This made it difficult and expensive to find a home.

Though housing market conditions have improved somewhat in 2023, inventory is still tight and rates are still relatively high. Buyers waiting for lower rates should have an opportunity to jump back into the market later this year, when the Mortgage Bankers Association predicts 30-year rates will drop to 5.6%.

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 (-0.11%)

The current average 30-year fixed mortgage rate is 6.35%, down 11 basis points since this time last week. A month ago, the rate was significantly higher at 6.58%.

At 6.35%, you'll pay $622 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 (-0.03%)

The average 20-year fixed mortgage rate is down from last week and sits at 6.11%. This time in May, the rate was slightly higher at 6.17%.

With a 6.11% rate on a 20-year term, your monthly payment will be $723 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 Drop Slightly (-0.01%)

The average 15-year fixed mortgage rate is 5.75%, a very small decrease from last week. In May, the rate was slightly lower at 5.73%.

With a 5.75% rate on a 15-year term, you'll pay $830 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 Inch Up (+0.08%)

The 7/1 adjustable mortgage rate is up a little since last week, currently at 6.58%. It was lower at 6.32% this time last month.

At 6.58%, your monthly payment would be $637 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 Stay Flat (No Change)

The average 5/1 ARM rate is 6.38%, the same it was last week. In May, this rate was 6.42%.

Here's how a 6.38% rate would affect you for the first five years: You'd pay $624 per month toward principal and interest for every $100,000 you borrow.

30-year FHA Rates Plummet (-0.80%)

The average 30-year FHA interest rate is 5.28% today, which is down significantly from last week. It's also drastically down compared to this time in May when the rate was 6.54%.

At 5.28%, you would pay $554 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 Drop (-0.16%)

The current VA mortgage rate is 5.67%, a decrease from this time last week. It was slightly lower in May at 5.70%.

With a 5.67% rate, your monthly payment would be $579 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-year Fixed Refinance Rates Drop (-0.11%)

The average 30-year refinance rate is 6.51%, down since last week. It's also decreased a little since this time in May when the rate was 6.63%.

Here's how a 6.51% rate would affect your monthly payments: You'd pay $633 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 Fall (-0.32%)

The current 20-year fixed refinance rate is 6.20%, which is lower than it was last week. It's also lower than this time last month, when it was 6.44%.

A 6.20% rate on a 20-year term will result in a $728 monthly payment toward principal and interest for every $100,000 you borrow.

15-year Fixed Refinance Rates Go Down (-0.16%)

The average 15-year fixed refinance rate is 5.93%, slightly lower than it was last week. It's at nearly the same point it was a month ago when it was 5.92%.

A 5.93% rate on a 15-year term means you'll pay $840 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 Dip (-0.02%)

The average 7/1 ARM refinance rate is 6.69%, down just a bit from this time last week. But it's up slightly compared to this time last month, when it sat at 6.61%.

Refinancing into a 7/1 ARM with a 6.69% rate means your monthly payment toward principal and interest will be $645 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 Inch Up (+0.08%)

The 5/1 ARM refinance rate is 6.48%, up slightly from last week. It's risen even more since May, when it was 6.38%.

A 6.48% rate will result in a monthly payment of $631 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 Drop (-0.08%)

The 30-year FHA refinance rate is 5.33%, which is a decrease from last week. This rate was higher last month at 5.63%.

A 5.33% refinance rate would lead to a $557 monthly payment toward the principal and interest per $100,000 borrowed.

30-year VA Refinance Rates Decrease (-0.08%)

The average 30-year VA refinance rate is 5.92%, which is a drop from last week. It's still higher than it was this time last month, though, when it was 5.87%.

At 5.92%, your new monthly payment would be $594 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 June 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 throughout 2023.

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.