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Current national mortgage and refinance rates, January 20, 2023 | Rates remain elevated.

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Mortgage interest rates moved in different directions this week, according to data compiled by Bankrate. See the table below for a detailed breakdown of how different loan types moved.

Mortgage rates have been on a wild ride as of late, with the 30-year fixed now past the once-unthinkable threshold of 7 percent as the Federal Reserve cracks down on inflation.

“The speed with which mortgage rates have increased in recent months has been whiplash-inducing and the cumulative effect — from near 3 percent at the beginning of the year to near 7 percent now — would’ve seemed laughably unlikely at the beginning of the year,” says Greg McBride, chief financial analyst for Bankrate. “Inflation running at 40-year highs will do that.”

The central bank raised rates again at its November meeting — but what comes next is a toss-up. Some anticipate more forward marching for mortgage rates, possibly tapping 8 percent, while others say subsequent Fed hikes have already been accounted for and rates should stabilize. Others see the Fed pulling back at the end of the year.

Average mortgage rates
Loan type Interest rate A week ago Change
30-year fixed rate 6.37% 6.31% +0.06
15-year fixed rate 5.62% 5.68% -0.06
5/1 ARM rate 5.38% 5.47% -0.09
30-year fixed jumbo rate 6.37% 6.28% +0.09

Rates last updated on January 20, 2023.

The rates listed above are marketplace averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, January 20th, 2023 at 7:30 a.m.

>>See historical mortgage rate trends

You can save thousands of dollars over the life of your mortgage by getting multiple offers.

"All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, Bankrate senior economic analyst. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?"

Mortgage rates

Current 30 year mortgage rate rises, +0.06%

The average rate for the benchmark 30-year fixed mortgage is 6.37 percent, up 6 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.56 percent.

At the current average rate, you'll pay a combined $623.54 per month in principal and interest for every $100,000 you borrow. That's $3.92 higher compared with last week.

The 30-year mortgage is the most popular home loan, and it has a number of advantages. Among them:

  • Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
  • Stability. With the 30-year, you lock in a consistent principal and interest payment. That predictability lets you plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a lower monthly payment can allow you to save more for retirement.

15-year fixed mortgage rate declines,-0.06%

The average 15-year fixed-mortgage rate is 5.62 percent, down 6 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $823 per $100k borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

5/1 adjustable rate mortgage moves down, -0.09%

The average rate on a 5/1 ARM is 5.38 percent, sliding 9 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 5.38 percent would cost about $560 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.

Jumbo mortgage rate goes up, +0.09%

The average rate for the benchmark jumbo mortgage is 6.37 percent, up 9 basis points from a week ago. Last month on the 20th, the average rate for jumbo mortgages was above that, at 6.57 percent.

At today's average rate, you'll pay $623.54 per month in principal and interest for every $100,000 you borrow. That's an extra $5.87 compared with last week.

In summary: How interest rates have shifted over the past week

  • 30-year fixed mortgage rate: 6.37%, up from 6.31% last week, +0.06
  • 15-year fixed mortgage rate: 5.62%, down from 5.68% last week, -0.06
  • 5/1 ARM mortgage rate: 5.38%, down from 5.47% last week, -0.09
  • Jumbo mortgage rate: 6.37%, up from 6.28% last week, +0.09

Mortgage refinance rates

30-year mortgage refinance rate advances, +0.16%

The average 30-year fixed-refinance rate is 6.48 percent, up 16 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 6.65 percent.

At the current average rate, you'll pay $630.75 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $10.47 higher.

Mortgage rate trends: Where rates are headed

The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.

"Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far," says McBride. "The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades."

Comparing different mortgage terms

The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

What are current mortgage rates?

The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping below 3%. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.

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