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Good news for borrowers: Mortgage rates are finally falling. According to Freddie Mac, average 30-year mortgage rates dropped for the fifth week in a row and averaged 7.22% from last Thursday through Wednesday. Today, rates are even lower.
Rates have been trending down as markets adjust to positive economic data showing that inflation is slowing and the economy is becoming more balanced.
"Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates," Sam Khater, Freddie Mac's chief economist, said in a press release. "The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today's levels. The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory."
Current Mortgage Rates
Current Refinance Rates
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Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
Click "More details" for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Decline (-0.16%)
The current average 30-year fixed mortgage rate is 6.75%, down 16 basis points since this time last week. This rate is also down almost a full percentage point compared to a month ago, when it was 7.61%.
At 6.75%, you'll pay $649 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.
20-Year Fixed Mortgage Rates Go Down (-0.18%)
The average 20-year fixed mortgage rate is down 18 basis points from last week and sits at 6.40%. This time last month, the rate was 7.38%.
With a 6.40% rate on a 20-year term, your monthly payment will be $740 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Decrease (-0.17%)
The average 15-year mortgage rate is 6.12%, down a bit from last week. It's also down from this time last month, when it was 6.79%.
With a 6.12% rate on a 15-year term, you'll pay $850 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Barely Inch Up (+0.04%)
The 7/1 adjustable mortgage rate is nearly flat from a week ago, currently at 7.08%. It's down since this time last month as well, when it was at 7.36%.
At 7.08%, your monthly payment would be $671 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Tick Down (-0.23%)
The average 5/1 ARM rate is 6.97%, a 23-point decrease from last week. It's also lower than it was a month ago, when it was 7.35%.
Here's how a 6.97% rate would affect you for the first five years: You'd pay $663 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Drop Below 6% (-0.42%)
The average 30-year FHA interest rate is 5.87% today, which is the first time this rate has been below 6% since early August. This rate was 6.92% a month ago.
At 5.87%, you would pay $591 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Inch Down (-0.09%)
The current VA mortgage rate is 6.07%, nine basis points down from this time last week. This rate was 6.94% a month ago.
With a 6.07% rate, your monthly payment would be $604 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Down a Tiny Bit (-0.06%)
The average 30-year refinance rate is 7.04%, which is a few basis points down from last week. It's also down compared to a month ago, when it was 7.79%.
Here's how a 7.04% rate would affect your monthly payments: You'd pay $668 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Tick Down (-0.07%)
The current 20-year fixed refinance rate is 6.82%, which just seven basis points down compared to a week ago. This rate was 7.31% this time last month.
A 6.82% rate on a 20-year term will result in a $765 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Up a Bit (+0.18%)
The average 15-year fixed refinance rate is 6.80%, which is up somewhat compared to last week. This rate is just a bit lower compared to this time a month ago, when it was at 6.95%.
A 6.80% rate on a 15-year term means you'll pay $888 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Go Down (-0.21%)
The average 7/1 ARM refinance rate is 6.75%, down from where it was last week. A month ago, it was higher at 7.47%.
Refinancing into a 7/1 ARM with a 6.75% rate means your monthly payment toward principal and interest will be $649 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Plunge (-0.55%)
The 5/1 ARM refinance rate is 6.82%, down more than half a percentage point from last week. It's also down more than a full percentage point compared to this time last month, when it was 7.94%.
A 6.82% rate will result in a monthly payment of $653 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Fall (-0.48%)
The 30-year FHA refinance rate is 5.89%, which is down from last week. This rate was 7.18% this time last month.
A 5.89% refinance rate would lead to a $592 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Hold Steady (+0.02%)
The average 30-year VA refinance rate is 6.38%, which is essentially flat from last week. This rate was 7.04% a month ago.
At 6.38%, your new monthly payment would be $624 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they're higher than they were in November 2022.
As inflation starts to come down, mortgage rates will recede somewhat as well. But we probably won't see more substantial drops until 2024.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.