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Compare today's mortgage and refinance rates, November 20, 2023 - Rates down

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Average mortgage rates sunk on all loan terms compared to a week ago, according to data collected by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

After exceeding 8 percent in recent weeks, mortgage rates have trended back down slightly. One big driver: Inflation has cooled, which means the Federal Reserve could wrap up its hiking cycle. The Fed last hiked its key interest rate in July, which increased borrowing costs many financial products, including mortgages.

The central bank held firm on another rate hike this month, indicating it expects rates to stay on the higher side for the foreseeable future.

“Inflation pressures are easing, which helps bring mortgage rates down,” says Greg McBride, Bankrate’s chief financial analyst. “There is still the issue of ballooning supply of government debt pulling in the other direction. Mortgage rates will yo-yo up and down as the market absorbs new information on the economy and government debt issuance.”

The rise in mortgage rates comes alongside appreciating home prices, both of which have kept homebuyers on the sidelines. Over half of home purchase mortgages originated in July had a monthly payment greater than $2,000, according to Black Knight. Twenty-three percent of originations in July had a payment over $3,000. The affordability squeeze is stretching budgets, and keeping many first-time homebuyers out of the market altogether.

Mortgage type Today's rate Last week's rate Change
30-year fixed 7.74% 7.87% -0.13
15-year fixed 7.01% 7.12% -0.11
5/1 ARM 6.92% 6.97% -0.05
30-year fixed jumbo 7.80% 7.90% -0.10

Rates last updated November 20, 2023.

The rates listed above are Bankrate's overnight average rates and are based on the assumptions here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, November 20th, 2023 at 7:30 a.m.

30-year mortgage retreats, -0.13%

Today's average rate for the benchmark 30-year fixed mortgage is 7.74 percent, down 13 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.98 percent.

At the current average rate, you'll pay principal and interest of $715.72 for every $100,000 you borrow. That's $9.00 lower, compared with last week.

The popular 30-year mortgage has a number of advantages:

  • Lower monthly payment: The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
  • Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you might qualify for a larger loan amountor 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.

Learn more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate drops, -0.11%

The average rate for the benchmark 15-year fixed mortgage is 7.01 percent, down 11 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $899 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM slides, -0.05%

The average rate on a 5/1 adjustable rate mortgage is 6.92 percent, falling 5 basis points since the same time last week.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, 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 6.92 percent would cost about $660 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan's terms.

Jumbo loan interest rate drops, -0.10%

The current average rate you'll pay for jumbo mortgages is 7.80 percent, down 10 basis points over the last seven days. A month ago, the average rate for jumbo mortgages was greater than 7.80, at 7.97 percent.

At today's average jumbo rate, you'll pay $719.87 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $6.94 lower.

Refinance rates

30-year fixed-rate refinance declines, -0.28%

The average 30-year fixed-refinance rate is 7.71 percent, down 28 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 8.13 percent.

At the current average rate, you'll pay $713.65 per month in principal and interest for every $100,000 you borrow. That's a decline of $19.42 from last week.

Where are mortgage rates going?

Mortgage rates have done a 180 as of late, dipping back under 8 percent. With inflation cooling and 10-year Treasury yields declining, the 30-year fixed mortgage could head into the 6 percent range by next year.

The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.

What these rates mean for your mortgage

While mortgage rates fluctuate considerably,, there is some consensus that we won’t see rates back at 3 percent for some time. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than expected, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

"All too often, some [homebuyers] 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, senior economic analyst for Bankrate. "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?”

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.