Mortgage and refinance rates today, September 12th, 2023 | Rates rise

Mortgage rates moved higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.

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 stretch of record lows, rates climbed 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. It’ll announce its decision 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 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 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	7.59%	7.53%	+0.06
15-year fixed rate	6.81%	6.79%	+0.02
5/1 ARM rate	6.57%	6.56%	+0.01
30-year fixed jumbo rate	7.62%	7.56%	+0.06

Rates last updated on September 12, 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 Tuesday, September 12th, 2023 at 7:30 a.m.

Mortgage interest rates

30-year mortgage goes up, +0.06%

The average rate for the benchmark 30-year fixed mortgage is 7.59 percent, up 6 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 7.55 percent.

At the current average rate, you'll pay a combined $705.39 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $4.12 higher.

15-year fixed mortgage goes up, +0.02%

The average rate for a 15-year fixed mortgage is 6.81 percent, up 2 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $888 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, 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 adjustable rate mortgage moves upward, +0.01%

The average rate on a 5/1 ARM is 6.57 percent, adding 1 basis point over the 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 types of loans are best for people 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 6.57 percent would cost about $637 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 increases, +0.06%

The average rate you'll pay for a jumbo mortgage is 7.62 percent, an increase of 6 basis points from a week ago. Last month on the 12th, the average rate for jumbo mortgages was unchanged, at 7.62 percent.

At the current average rate, you'll pay a combined $707.45 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $4.12 higher.

Refinance rates

30-year fixed-rate refinance moves upward, +0.12%

The average 30-year fixed-refinance rate is 7.78 percent, up 12 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.71 percent.

At the current average rate, you'll pay $718.49 per month in principal and interest for every $100,000 you borrow. That's an increase of $8.29 over what you would have paid last week.

Where are mortgage rates heading?

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

The rates on 30-year 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 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 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
• 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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