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Compare today's mortgage and refinance rates, January 17th, 2023 | Most rates fall

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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 5/1 ARM loans moved lower, while rates for jumbo mortgages rose.

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 home loan rates
Product Rate Last week Change
30-year fixed 6.41% 6.42% -0.01
15-year fixed 5.73% 5.86% -0.13
5/1 ARM 5.46% 5.52% -0.06
30-year fixed jumbo 6.40% 6.38% +0.02

Rates as of January 17, 2023.

These rates are marketplace averages based on the assumptions shown here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, January 17th, 2023 at 7:30 a.m.

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 for home purchase

30-year fixed-rate mortgage falls, -0.01%

The average rate for a 30-year fixed mortgage is 6.41 percent, down 1 basis point over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.52 percent.

At the current average rate, you'll pay $626.16 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $0.66 lower.

Learn more about 30-year mortgage rates, and compare to a variety of other loan types.

15-year fixed mortgage moves lower,-0.13%

The average rate you'll pay for a 15-year fixed mortgage is 5.73 percent, down 13 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $829 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, 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 faster.

5/1 ARM rate trends down, -0.06%

The average rate on a 5/1 adjustable rate mortgage is 5.46 percent, ticking down 6 basis points 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 can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for people who expect to refinance or sell 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 5.46 percent would cost about $565 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 moves upward, +0.02%

The average jumbo mortgage rate is 6.40 percent, up 2 basis points over the last seven days. A month ago, the average rate was higher, at 6.52 percent.

At today's average jumbo rate, you'll pay $625.51 per month in principal and interest for every $100,000 you borrow. That's up $1.31 from what it would have been last week.

Recap: How interest rates have moved

  • 30-year fixed mortgage rate: 6.41%, down from 6.42% last week, -0.01
  • 15-year fixed mortgage rate: 5.73%, down from 5.86% last week, -0.13
  • 5/1 ARM mortgage rate: 5.46%, down from 5.52% last week, -0.06
  • Jumbo mortgage rate: 6.40%, up from 6.38% last week, +0.02

Mortgage refinance rates

Today's 30-year mortgage refinance rate increases, +0.07%

The average 30-year fixed-refinance rate is 6.48 percent, up 7 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher, at 6.61 percent.

At the current average rate, you'll pay $630.75 per month in principal and interest for every $100,000 you borrow. That's an additional $4.59 per $100,000 compared with last week.

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 mortgage options

The 30-year fixed mortgage is the most popular loan for homeowners. This type of loan has a number of advantages, including:

  • 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.

Where rates are headed

To see where Bankrate's panel of experts expect rates to go from here, check out our mortgage rate projections.

Want to see where rates are currently? Lenders nationwide respond to Bankrate.com's weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans.

Keep reading:

Featured lenders, January 17, 2023