A variety of major mortgage rates have gone up today. Average interest rates for 15-year and 30-year fixed-rate mortgages have both shown an upward trend. We also didn’t see any adjustments to the average 5/1 adjustable rate mortgage rate.
Mortgage rates have risen fairly steadily since early 2022, following a series of interest rate hikes by the Federal Reserve. Interest rates are dynamic and unpredictable, at least on a daily or weekly basis, reacting to a wide variety of economic factors. But the Fed’s actions, designed to dampen the high rate of inflation, are having an unequivocal impact on mortgage rates.
If you’re looking to buy a home, trying to time the market may not work in your favor. If inflation continues to rise and rates continue to rise, this will likely translate into higher interest rates and higher monthly mortgage payments. Therefore, you may have a better chance of getting a lower mortgage interest rate sooner rather than later. No matter when you decide to buy a home, it’s always a good idea to research multiple lenders to compare rates and fees to find the best mortgage for your specific situation.
30-year fixed rate mortgages
The average interest rate on a standard 30-year fixed-rate mortgage is 6.59%, up 12 basis points from a week ago. (One basis point equals 0.01%.) 30-year fixed-rate mortgages are the most common loan term. A 30-year fixed-rate mortgage will generally have a higher interest rate than a 15-year fixed-rate mortgage, but also a lower monthly payment. Even though you’ll pay more interest over time — you’re paying off your loan over a longer period — if you’re looking for a lower monthly payment, a 30-year fixed-rate mortgage may be a good option.
15-year fixed-rate mortgages
The average 15-year fixed mortgage rate is 5.95%, up 12 basis points from a week ago. Compared to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage with the same loan value and interest rate will have a higher monthly payment. But a 15-year loan will usually be the best deal, if you can afford the monthly payments. These typically include being able to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.
Variable rate mortgages 5/1
A 5/1 ARM has an average rate of 5.45%, the same rate as it was a week ago. With an adjustable-rate mortgage, you’ll generally get a lower interest rate than a 30-year fixed-rate mortgage for the first five years. But you may end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. If you plan to sell or refinance your home before the rate changes, an adjustable rate mortgage may be right for you. But if not, you could end up paying a much higher interest rate if market rates change.
Mortgage rate trends
While mortgage rates were historically low in early 2022, they’ve been on the rise since. The Federal Reserve recently raised interest rates by an additional 0.50 percentage point in a bid to curb record inflation. The Fed has raised rates a total of seven times this year, but inflation remains high. Generally, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.
While the Fed doesn’t set mortgage rates directly, central bank policy actions influence how much you pay to finance your home loan. If you’re looking to buy a home, keep in mind that the Fed has signaled it will continue to hike rates through 2023, which will likely continue to drive up mortgage rates.
We use data collected by Bankrate, which is owned by the same parent company as CNET, to track the daily trend in mortgage rates. This table summarizes the average rates offered by lenders across the country:
Current average mortgage interest rates
| Loan type | Interest rate | A week ago | Modify |
|---|---|---|---|
| Thirty-year fixed rate | 6.59% | 6.47% | +0.12 |
| Fixed rate over 15 years | 5.95% | 5.83% | +0.12 |
| Jumbo 30-year mortgage rate | 6.58% | 6.46% | +0.12 |
| 30-year mortgage lending rate | 6.71% | 6.54% | +0.17 |
Updated December 29, 2022.
How to find the best mortgage rates
You can get a custom mortgage rate by connecting with your local mortgage broker or using an online calculator. To find the best home loan, you’ll need to consider your current goals and finances.
A number of factors, including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio, will all affect your mortgage interest rate. Typically, you want a higher credit score, higher down payment, lower DTI, and lower LTV to get you a lower interest rate.
The interest rate isn’t the only factor affecting the cost of your home. Also be sure to factor in other costs such as fees, closing costs, taxes, and discount points. You should shop around with multiple lenders, such as credit unions and online lenders, as well as local and national banks, to get the right mortgage for you.
What is the best loan term?
One important thing to keep in mind when choosing a mortgage is the loan term or payment schedule. The most commonly offered loan terms are 15 and 30 years, although 10, 20 and 40 year mortgages can also be found. Another important distinction is between fixed rate mortgages and variable rate mortgages. For fixed rate mortgages, the interest rates are stable throughout the life of the loan. For adjustable rate mortgages, interest rates are stable for a number of years (usually five, seven or 10 years), and then the rate fluctuates each year depending on the prevailing market interest rate.
One thing to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to stay at home. Fixed rate mortgages may be more suitable for those planning to stay in their home for a period of time. Fixed rate mortgages offer more stability over time than adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates upfront. However, if you don’t plan to keep your new home for more than three to ten years, an adjustable rate mortgage may offer you a better deal. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure you do your research and think about your priorities when choosing a mortgage.
