Today's national mortgage & refinance rates, September 14, 2023: Most rates fall

Mortgage rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans declined, while rates for adjustable rate mortgages rose.

Mortgage rates have risen substantially since 2022, with the popular 30-year fixed rate loan breaking through 7 percent this summer. After a stretch of record lows, rates sprang forward 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 many financial products, including mortgages.

The central bank’s next move is to decide whether to increase rates again. It’ll announce its decision on Sept. 20.

The increase in mortgage rates comes alongside appreciating home prices, both of which have have prevented more homebuyers from entering the market. 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 came to an end, new mortgage applications 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	7.49%	7.62%	-0.13
15-year fixed rate	6.79%	6.81%	-0.02
5/1 ARM rate	6.55%	6.54%	+0.01
30-year fixed jumbo rate	7.50%	7.67%	-0.17

Rates last updated on September 14, 2023.

The rates listed above are averages 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 Thursday, September 14th, 2023 at 7:30 a.m.

Mortgage interest rates

30-year fixed-rate mortgage slides, -0.13%

The average 30-year fixed-mortgage rate is 7.49 percent, a decrease of 13 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.60 percent.

At the current average rate, you'll pay principal and interest of $698.53 for every $100,000 you borrow. That's lower by $8.92 than it would have been last week.

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

• 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 mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can 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 mortgage with a lower monthly payment can allow you to save more for retirement.

15-year mortgage rate declines, -0.02%

The average rate for a 15-year fixed mortgage is 6.79 percent, down 2 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost $887 per $100,000 borrowed. That's clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, 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 quickly.

5/1 adjustable rate mortgage moves higher, +0.01%

The average rate on a 5/1 adjustable rate mortgage is 6.55 percent, adding 1 basis point over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage loans 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 sell or refinance before the first or second adjustment. Rates could be considerably 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 6.55 percent would cost about $635 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.

Current jumbo mortgage rate falls, -0.17%

The average jumbo mortgage rate today is 7.50 percent, down 17 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was higher, at 7.66 percent.

At the average rate today for a jumbo loan, you'll pay a combined $699.21 per month in principal and interest for every $100,000 you borrow. That's $11.68 lower, compared with last week.

Interested in refinancing? See mortgage refinance rates

Today's 30-year mortgage refinance rate trends down, --0.10%

The average 30-year fixed-refinance rate is 7.68 percent, down 10 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.75 percent.

At the current average rate, you'll pay $711.58 per month in principal and interest for every $100,000 you borrow. That's lower by $6.91 than it would have been last week.

Where are mortgage rates going?

Economists can't say for certain where mortgage rates are going from here, according to Bankrate’s latest mortgage rates forecast. Some have speculated the 30-year rate could rise to 8 percent, while others expect rates to cool down by the end of 2023.

30-year fixed mortgage rates 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.

Keep in mind: You could save thousands over the life of your mortgage 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

• Mortgage rate trend predictions for this week
• Latest mortgage news for this week
• Compare 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.

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