30-year mortgage rates today

Written by
Jeff Ostrowski
Reviewed by
Greg McBride, CFA
Jun. 07, 2023

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Top offers on Bankrate vs. the national average interest rate
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Top offers on Bankrate: 6.36%
National average: 7.08%

For the week of June 2nd, top offers on Bankrate is X% lower than the national average. On a $300,000 30-year loan, this translates to $XXX in monthly savings.

Today's national 30-year mortgage interest rate trends

On Wednesday, June 07, 2023, the current average interest rate for the benchmark 30-year fixed mortgage is 7.02%, falling 11 basis points since the same time last week. If you're looking to refinance, the average 30-year refinance interest rate is 7.11%, declining 8 basis points over the last week.

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30-year mortgage rates today

Written by
Jeff Ostrowski
Reviewed by
Greg McBride, CFA

On Wednesday, June 07, 2023, the national average 30-year fixed mortgage APR is 7.04%. The average 30-year fixed refinance APR is 7.13%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

Mortgage industry insights

Inflation is still running hot, raising questions about Fed’s next move

A few short weeks ago, housing economists thought they knew what was coming next. The Federal Reserve hiked interest rates in May, but would halt further increases as inflation stabilized, according to the consensus view.

Then, on May 26, the Commerce Department reported that a measure of inflation closely watched by Fed officials accelerated in April, rising 4.4 percent compared to a year ago. In March, that measure, the Personal Consumption Expenditures price index, had been at 4.2 percent.

“Inflation is still running too high,” says Mortgage Bankers Association Chief Economist Mike Fratantoni, “and recent economic data is beginning to convince investors that the Federal Reserve will not be cutting rates anytime soon.”

Apparently, mortgage rates won’t be falling, either. As of the week ending May 31, the average 30-year fixed-rate mortgage rose to 6.9 percent, according to Bankrate’s national survey of large lenders. The rates on fixed mortgages don’t precisely follow the Fed’s moves, but there is some link between what the central bank does, the broader economy and how the mortgage market responds.

Inflation is just one of many factors driving mortgage rates in the coming days. On June 2, the Labor Department releases its jobs report for May. On June 14, the Fed announces its next move. If that’s not enough suspense, Congress continues to debate an agreement over the federal debt ceiling. 

“The debt ceiling agreement isn’t a done deal yet, and the U.S. economy still faces some significant pressures in the form of potential rate hikes from the Federal Reserve at its June meeting and tightness in the banking sector,” says Sean Salter, a finance professor at Middle Tennessee State University.

Find out what experts predict for mortgage rates in Bankrate’s June forecast.

 

Current mortgage and refinance interest rates

Product Interest Rate APR
30-Year Fixed Rate 7.02% 7.04%
20-Year Fixed Rate 6.81% 6.83%
15-Year Fixed Rate 6.38% 6.41%
10-Year Fixed Rate 6.57% 6.60%
5-1 ARM 6.06% 7.87%
10-1 ARM 7.14% 7.64%
30-Year Fixed Rate FHA 6.36% 7.28%
30-Year Fixed Rate VA 6.62% 6.73%
30-Year Fixed Rate Jumbo 7.03% 7.04%

Rates as of Wednesday, June 07, 2023 at 6:30 AM

 

 

How to compare 30-year fixed mortgage rates

If you compare loan offers from a few mortgage lenders, you’ll have a better chance of securing a competitive rate. Here’s how to compare:

  1. Get preapproved: Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison. Lenders determine your interest rate based on your credit score, debt-to-income (DTI) ratio and other factors, including the size of your down payment. Putting your best foot forward with those variables will help you land the best deal.
  2. Compare the interest rate and APR: The interest rate and annual percentage rate (APR) reflect the cost you’ll incur for the loan. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any points. When comparing rate offers, the APR is a more complete picture of the all-in cost.
  3. Consider the lender’s ratings and your experience: Aside from the numbers, evaluate other factors such as convenience and the lender’s responsiveness. Take a look at what other borrowers have had to say about the lender, too.

It’s important to shop around for a mortgage to make sure you’re getting the best deal. Bankrate’s mortgage amortization calculator shows how even a 0.1 percent difference on your rate can translate to thousands of dollars you could pay over the life of the loan.

Finding the lowest-advertised rate won’t mean much, however, if your credit score or debt puts you out of range for the best offers. Generally, borrowers with a credit score of 740 and up, a substantial down payment (20 percent is ideal, but not required) and a DTI ratio of no more than 43 percent score the most attractive offers.
 

Some lenders still cater to borrowers that don’t meet these criteria, offering competitive rates even if your credit or finances aren’t up to par. That’s another reason why it pays to shop around.

Comparing mortgage rates can also pay off especially in a volatile economic climate. With rates higher than they were in recent years and constantly changing, it’s often helpful to understand overall rate trends before locking in your own.

Pros and cons of a 30-year mortgage

Choosing the right home loan is an important step in the homebuying process, and you have options based on your credit score, income, down payment amount, budget and financial goals. Here are the main pros and cons of a 30-year fixed mortgage:

Pros of a 30-year mortgage

  • Lower monthly payment: Repaying a mortgage over 30 years means you’ll have lower, more affordable payments spread out over time compared to shorter-term loans like 15-year mortgages.
  • Stability: Having a consistent principal and interest payment helps you better map out your housing expenses for the long term. (Your overall monthly housing expenses can change, however, if your homeowners insurance and property taxes go up or down.) Of course, this is only true if your mortgage has a fixed rate. An adjustable-rate mortgage won’t give you this same benefit for the whole life of the loan.
  • Buy more house: With lower payments, you might be able to qualify for a larger loan amount and afford a more expensive home.
  • More financial flexibility: Lower monthly payments can provide more cushion in your budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Cons of a 30-year mortgage

  • More total interest paid: Stretching out repayment over 30 years means you’ll wind up paying more in interest overall than you would with a shorter-term loan.
  • Higher mortgage rates: Lenders usually charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer amount of time.
  • Becoming house poor: Just because you might be able to afford more house with a 30-year loan doesn’t mean you should overstretch your budget. Give yourself some breathing room for other financial goals and unexpected expenses.
  • Slower equity growth: It will take longer to build equity in your home because most of your initial mortgage payments will go towards interest rather than paying down your principal amount.

How to find the best mortgage offer for you

Of all the mortgage terms, the 30-year option is the most popular. That’s because it comes with much lower monthly payments compared to a 15-year or other shorter-term loan. The tradeoff, of course, is you’ll pay more in interest.
 
If you can afford a higher monthly payment, however, you don’t have to get a 30-year loan. In addition to 15-year mortgages, many lenders offer flexible-term loans between eight years and 29 years, as well adjustable-rate mortgages (ARMs) that come with a lower initial interest rate, typically for three, five, seven or 10 years.
 
Depending on whether you qualify, you can also pair your 30-year loan with down payment assistance. The assistance programs differ, but usually, you’ll get the assistance by way of a second mortgage. Many first-time buyer loan programs include a low-rate 30-year loan and some form of assistance.

30-year mortgage FAQs

 

Written by: Jeff Ostrowski, mortgage reporter for Bankrate

Jeff Ostrowski writes about the U.S. housing market for Bankrate. He has appeared on CNBC and numerous radio and television outlets to discuss his reporting about real estate trends.

Read more from Jeff Ostrowski

Reviewed by: Greg McBride, chief financial analyst for Bankrate

Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience.

Read more from Greg McBride

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