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National mortgage rates were mostly higher compared to a week ago, according to data collected by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo mortgages moved higher, while 5/1 ARM rates remained flat.
Mortgage rates could gradually come down this year, according to Greg McBride, CFA, Bankrate chief financial analyst. As the Federal Reserve stopped raising rates in 2023, mortgages rates started to drop at the end of Q4. The central bank now anticipates rate cuts in 2024 — a move that would have broad economic impact, including on the 10-year Treasury, the primary influencer of fixed mortgage rates.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says McBride. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.03% | 6.93% | +0.10 |
| 15-year fixed | 6.49% | 6.32% | +0.17 |
| 5/1 ARM | 6.38% | 6.38% | N/C |
| 30-year fixed jumbo | 7.07% | 6.96% | +0.11 |
Rates accurate as of January 22, 2024.
The rates listed here are Bankrate's overnight average rates and are 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, January 22nd, 2024 at 7:30 a.m.
Today's 30-year mortgage rate trends higher, +0.10%
Today's average 30-year fixed-mortgage rate is 7.03 percent, an increase of 10 basis points since the same time last week. Last month on the 22nd, the average rate on a 30-year fixed mortgage was lower, at 7.01 percent.
At the current average rate, you'll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That's an additional $6.71 per $100,000 compared to last week.
Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.
15-year mortgage rate climbs, +0.17%
The average rate for the benchmark 15-year fixed mortgage is 6.49 percent, up 17 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $871 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 holds firm
The average rate on a 5/1 ARM is 6.38 percent, unchanged from a week ago.
Adjustable-rate mortgages, or ARMs, are home loans 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 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 6.38 percent would cost about $624 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 mortgage rate advances, +0.11%
The average rate for a 30-year jumbo mortgage is 7.07 percent, an increase of 11 basis points from a week ago. A month ago, the average rate was unchanged, at 7.07 percent.
At today's average rate, you'll pay a combined $670.01 per month in principal and interest for every $100,000 you borrow. That's an increase of $7.39 over what you would have paid last week.
Refinance rates
Today's 30-year mortgage refinance rate trends upward, +0.12%
The average 30-year fixed-refinance rate is 7.22 percent, up 12 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.17 percent.
At the current average rate, you'll pay $680.14 per month in principal and interest for every $100,000 you borrow. That's an additional $8.11 per $100,000 compared with last week.
Where are mortgage rates heading?
The Federal Reserve has signaled that it intends to cut rates in 2024, depending on inflation and employment data and other factors. The Fed meets again on Jan. 31.
As of mid-January, the average 30-year fixed rate mortgage sits at just under 7 percent. As the year progresses, expect rates to slowly trend downward, says McBride.
“Mortgage rates will spend the bulk of the year in the 6s, with movement below 6 percent confined to the back half of the year,” says McBride.
The rates on 30-year mortgages mostly follow the 10-year treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. The specific rate you’d qualify for is tied to your credit score, loan type and other variables.
What today's rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent any time soon. 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
- Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare current mortgage rates for today
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.
As a seasoned financial expert with a deep understanding of the mortgage industry, I can attest to the significance of reliable sources when making financial decisions. Bankrate, established in 1976, has been a trusted companion for individuals navigating the complex world of finance for over four decades. The organization's commitment to demystifying financial decision-making processes and providing objective, accurate, and trustworthy information is evident in its long-standing reputation.
Bankrate follows a strict editorial policy, ensuring that the interests of its audience come first. All content is crafted by highly qualified professionals and subject matter experts who prioritize editorial integrity. This commitment is crucial in the financial landscape, where accurate and unbiased information is paramount.
The key principles that Bankrate adheres to include editorial independence, transparent disclosure of how they make money, and a clear mission to provide readers with credible and dependable information. This commitment is reinforced by the fact that Bankrate's editorial team operates independently of advertisers, ensuring that the content remains unbiased.
Now, delving into the content provided in the article, it discusses current mortgage rates and trends. Here are the key concepts covered:
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Overview of Bankrate's Promise:
- Founded in 1976.
- Focus on helping people make smart financial choices.
- Strict editorial policy for over four decades.
-
Editorial Integrity:
- Bankrate follows a strict editorial policy to prioritize readers' interests.
- Content is authored by highly qualified professionals and subject matter experts.
- Thorough fact-checking to ensure accuracy.
-
Key Principles:
- Editorial independence, ensuring content is not influenced by advertisers.
- No direct compensation from advertisers for the editorial team.
- Transparent about how Bankrate makes money.
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Mortgage Rates Overview:
- National mortgage rates trended mostly higher compared to the previous week.
- Rates for 30-year fixed, 15-year fixed, and jumbo mortgages increased, while 5/1 ARM rates remained flat.
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Expert Commentary on Mortgage Rates:
- Greg McBride, CFA, Bankrate chief financial analyst, anticipates gradual mortgage rate decreases in 2024.
- Federal Reserve's decision to stop raising rates in 2023 influenced the drop in mortgage rates.
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Current Mortgage Rates:
- Detailed breakdown of today's rates for various loan types.
- 30-year fixed, 15-year fixed, 5/1 ARM, and 30-year fixed jumbo rates with changes from the previous week.
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Refinance Rates:
- Overview of current 30-year mortgage refinance rates with changes.
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Predictions and Insights:
- Federal Reserve signaling rate cuts in 2024.
- McBride's prediction of mortgage rates spending most of the year in the 6s.
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Advice for Consumers:
- Suggestions for those shopping for mortgages to lock rates when finding affordable loans.
- Emphasis on seeking the best mortgage deal by exploring multiple lenders.
In summary, Bankrate's comprehensive coverage and commitment to editorial integrity make it a reliable source for individuals seeking information on mortgage rates and financial decisions. The presented content offers valuable insights for consumers navigating the current mortgage landscape.
