The average rate offered to homebuyers using a conventional 30-year fixed mortgage ticked down to 4.34% from 4.35% the previous business day, when it was the highest it’s been since 2020. The average for a 15-year fixed mortgage fell to 3.52% from 3.56% the previous business day, also its high since 2020. Fixed mortgage rates tend to track the direction of 10-year Treasury yields, which usually rise with heightened inflation fears (and fall when those fears subside.) Yields are generally much higher this year but have cooled off a bit after spiking following a red-hot inflation report last week.  Even at these highs, mortgages aren’t all that unaffordable by historic standards. According to a Freddie Mac measure that dates back farther than our data, 30-year mortgages average about 1.25 percentage points higher than the record low reached last year, and 15-year mortgages, even a bit less. At the start of the 1990s, the average 30-year mortgage was around 10%. During the pandemic, the relatively low rates bolstered buying power, allowing house hunters to buy more expensive homes with the same monthly budget and helping to fuel a fiercely competitive residential real estate boom characterized by rapidly rising prices. But now that interest rates are spiking, the cost is increasingly putting homes out of reach for prospective buyers.

30-Year Mortgage Rates Are Mixed

A 30-year fixed mortgage is by far the most common type of mortgage because it offers a consistent and relatively low monthly payment. (Shorter-term fixed mortgages have higher payments because the borrowed money is paid back more quickly.)  Besides conventional 30-year mortgages, some are backed by the Federal Housing Authority or the Department of Veterans Affairs. FHA loans offer borrowers with lower credit scores or a smaller down payment a better deal than they might otherwise get; VA loans let current or past members of the military and their families skip a down payment.

30-year fixed: The average rate fell to 4.34%, down from 4.35% the previous business day. A week ago, it was 4.15%. For every $100,000 borrowed, monthly payments would cost about $497.22, or $11.12 more than a week ago.30-year fixed (FHA): The average rate fell to 4.27% from 4.29% the previous business day. A week ago, it was 4.01%. For every $100,000 borrowed, monthly payments would cost about $493.11, or $15.12 more than a week ago.30-year fixed (VA): The average rate rose to 4.71% from 4.64% the previous business day. A week ago, it was 4.44%. For every $100,000 borrowed, monthly payments will cost about $519.24, or $16.11 more than a week ago.

15-Year Mortgage Rate Declines

The major advantage of a 15-year fixed mortgage is that it offers a lower interest rate than the 30-year and you’re paying off your loan more quickly, so your total borrowing costs are far lower. But for the same reason—that the loan is paid back over a shorter time frame—the monthly payments will be higher.

15-year fixed: The average rate fell to 3.52%, down from 3.56% the previous business day. A week ago, it was 3.29%. For every $100,000 borrowed, monthly payments would cost about $715.87, or $11.26 more than a week ago.

Jumbo Mortgage Rates Fall, Hold Steady

Jumbo loans, which allow you to borrow bigger amounts for more expensive properties, tend to have slightly higher interest rates than loans for more standard amounts. Jumbo means over the limit that Fannie Mae and Freddie Mac are willing to buy from lenders, and that limit went up in 2022. For a single-family home, it’s now $647,200 (except in Hawaii, Alaska, and a few federally designated high-cost markets, where the limit is $970,800.)

Jumbo 30-year fixed: The average rate fell to 3.98% from 4.02% the previous business day. A week ago, it was 3.91%. For every $100,000 borrowed, monthly payments would cost about $476.26, or $4.02 more than a week ago.Jumbo 15-year fixed: The average rate was 3.65%, the same as the previous business day. A week ago, it was 3.52%. For every $100,000 borrowed, monthly payments would cost about $722.27, or $6.40 more than a week ago.

Refinance Rates Decrease

Refinancing an existing mortgage tends to be slightly more expensive than getting a new one, especially in a low-rate environment. 

30-year fixed: The average rate to refinance fell to 4.4% from 4.43% the previous business day. A week ago, it was 4.21%. For every $100,000 borrowed, monthly payments would cost about $500.76, or $11.16 more than a week ago.15-year fixed: The average rate to refinance fell to 3.6% from 3.64% the previous business day. A week ago, it was 3.37%. For every $100,000 borrowed, monthly payments would cost about $719.80, or $11.28 more than a week ago.

Methodology

Our rates for “today” reflect national averages provided by more than 200 of the country’s top lenders one business day ago, and the “previous” is the rate provided the business day before that. Similarly, the week earlier references compare the data from five business days earlier (so bank holidays are excluded.) The rates assume a loan-to-value ratio of 80% and a borrower with a FICO credit score of 700 to 759—within the “good” to “very good” range. They’re representative of the rates customers would see in actual quotes from lenders, based on their qualifications, and may vary from advertised teaser rates. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.