Today's mortgage & refinance rates, September 11, 2023 - Rates remain elevated.
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Mortgage rates moved in different directions this week, according to data compiled by Bankrate. Read on for a detailed breakdown of how different loan terms moved.
Mortgage rates have risen substantially since 2022, with the popular 30-year fixed rate loan breaking through 7 percent this summer. After a period at record lows, rates increased in 2022 thanks to inflation and the Federal Reserve’s response. The Fed last hiked its key interest rate in July, which brought up borrowing costs on a variety of financial products, including mortgages.
The central bank’s next move is to decide whether to increase rates again on Sept. 20.
The rise in mortgage rates comes alongside appreciating home prices, both of which have have prevented more buyers from entering the market. More than half of home purchase mortgages originated in July had a monthly payment over $2,000, according to Black Knight. Twenty-three percent of originations in July had a payment over $3,000.
What’s more: As the summer wound down, applications for new mortgages sank to their lowest level since 1996, according to the Mortgage Bankers Association.
|Loan type||Interest rate||A week ago||Change|
|30-year fixed jumbo||7.58%||7.56%||+0.02|
Rates as of September 11, 2023.
The rates listed above are marketplace averages based on the assumptions shown here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, September 11th, 2023 at 7:30 a.m.
Mortgage rates for home purchase
Current 30 year mortgage rate moves higher, +0.03%
The average 30-year fixed-mortgage rate is 7.56 percent, up 3 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 7.51 percent.
At the current average rate, you'll pay principal and interest of $703.33 for every $100,000 you borrow. That's an increase of $2.06 over what you would have paid last week.
15-year mortgage goes unchanged
The average 15-year fixed-mortgage rate is 6.79 percent, unchanged from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $887 per $100,000 borrowed. That may put more pressure on 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 flat for the week
The average rate on a 5/1 adjustable rate mortgage is 6.56 percent, unchanged over the last week.
Adjustable-rate mortgages, or ARMs, are home loans 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 types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be materially 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 6.56 percent would cost about $636 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 mortgage increases, +0.02%
The current average rate you'll pay for jumbo mortgages is 7.58 percent, an increase of 2 basis points over the last seven days. Last month on the 11th, the average rate on a jumbo mortgage was lesser, at 7.57 percent.
At the current average rate, you'll pay a combined $704.70 per month in principal and interest for every $100,000 you borrow. That's an additional $1.37 per $100,000 compared to last week.
Interested in refinancing? See rates for home refinance
30-year fixed-rate refinance climbs, +0.09%
The average 30-year fixed-refinance rate is 7.75 percent, up 9 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.67 percent.
At the current average rate, you'll pay $716.41 per month in principal and interest for every $100,000 you borrow. That's $6.21 higher compared with last week.
Where are mortgage rates going?
Economist are having a hard time pinning down a path for mortgage rates, according to Bankrate’s latest forecast. Some experts have speculated the 30-year rate could hit 8 percent, while others expect rates to cool down by the end of the year.
The rates on 30-year fixed mortgages mostly follow the 10-year Treasury yield, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
“Economic data that is not too hot and not too cold would be helpful to mortgage rates and could get rates back down below 7 percent,” says Greg McBride, chief financial analyst for Bankrate, adding, “but that has to be true for inflation, job growth, wages and consumer spending.”
What these rates mean for your mortgage
While mortgage rates are notoriously volatile, 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
- Expert poll: Mortgage rate trend predictions for this week
- The latest mortgage news for this week
- Compare current mortgage rates for today
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.