Today's national mortgage & refinance rates, September 18, 2023: Rates remain elevated.

Mortgage rates were mixed this week, according to data compiled by Bankrate. Keep reading for a breakdown of how each loan term moved.

Mortgage rates have steadily increased in the past year, 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 determine whether to increase rates again on Sept. 20.

The rise in mortgage rates comes alongside appreciating home prices, both of which have eroded buying power. More than half of home purchase loans 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 fell to their lowest level since 1996, according to the Mortgage Bankers Association.

Loan type	Interest rate	A week ago	Change
30-year fixed rate	7.55%	7.56%	-0.01
15-year fixed rate	6.80%	6.79%	+0.01
5/1 ARM rate	6.53%	6.56%	-0.03
30-year fixed jumbo rate	7.58%	7.58%	N/C

Rates last updated on September 18, 2023.

These rates are averages based on the assumptions shown here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, September 18th, 2023 at 7:30 a.m.

Mortgage rates

30-year fixed-rate mortgage trends down, -0.01%

The average 30-year fixed-mortgage rate is 7.55 percent, a decrease of 1 basis point since the same time last week. Last month on the 18th, the average rate on a 30-year fixed mortgage was higher, at 7.62 percent.

At the current average rate, you'll pay a combined $702.64 per month in principal and interest for every $100,000 you borrow. That's $0.69 lower, compared with last week.

15-year fixed mortgage trends upward, +0.01%

The average rate you'll pay for a 15-year fixed mortgage is 6.80 percent, up 1 basis point from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $888 per $100,000 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 more rapidly.

5/1 ARM moves down, -0.03%

The average rate on a 5/1 ARM is 6.53 percent, falling 3 basis points since the same time last week.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to refinance or sell 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 6.53 percent would cost about $634 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 interest rate flat for the week

The current average rate you'll pay for jumbo mortgages is 7.58 percent, unaltered from a week ago. Last month on the 18th, jumbo mortgages' average rate was higher, at 7.67 percent.

At the average rate today for a jumbo loan, you'll pay $704.70 per month in principal and interest for every $100,000 you borrow.

Interested in refinancing? See rates for home refinance

Today's 30-year mortgage refinance rate slides, --0.02%

The average 30-year fixed-refinance rate is 7.73 percent, down 2 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.79 percent.

At the current average rate, you'll pay $715.03 per month in principal and interest for every $100,000 you borrow. That's $1.38 lower, compared with last week.

Where are mortgage rates heading?

Economist are having a hard time pinning down a path for mortgage rates, according to Bankrate’s latest rates 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 home loans 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 move up and down on a daily basis,, there is some consensus that we won’t see rates return to 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 anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

To help you uncover the best deal, get 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
• Latest mortgage news for this week
• Compare today's 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.