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Mortgage rates are holding relatively steady this week after dropping significantly late last week. Average 30-year fixed rates remain at the lowest level they’ve been in a month.

Mortgage rates first surpassed 7% late in October, the highest rates have been in 20 years. Though they’ve since trended down, rates are still more than three percentage points higher now than they were at the start of 2022.

This rapid increase in rates has significantly cut into affordability for borrowers, and has pushed many hopeful homebuyers out of the market. In September, existing-home sales were down nearly 24% year-over-year, according to the National Association of Realtors.

The housing market is likely to remain sluggish until rates come down further, which may start to happen in 2023. But even when rates finally drop, it likely won’t be down to the historic lows we saw in 2020 and 2021, when 30-year fixed rates dropped below 3%.

For borrowers navigating the market right now, utilizing cost-saving strategies is more important than ever. Shop around with multiple mortgage lenders to find the one with the lowest rates and fees, make a larger down payment to lower the amount you need to borrow, and be open to mortgage options you wouldn’t normally consider, such as a shorter term or an adjustable-rate mortgage.

Current mortgage rates

Mortgage type Average rate today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This information has been provided by
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mortgage rates on Zillow

Current refinance rates

Mortgage type Average rate today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This information has been provided by
Zillow. See more
mortgage rates on Zillow

Mortgage calculator

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.

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

Click “More details” for tips on how to save money on your mortgage in the long run.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 7.08%, according to Freddie Mac. This is an increase from the previous week.

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.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates. 

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 6.38%, an increase from the prior week, according to Freddie Mac data. The last time this rate was above 6% was in 2008.

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.

5/1 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 6.06%, an increase from the previous week. This is also the first time this rate has surpassed 6% since 2008.

Adjustable rate mortgages can look very attractive to borrowers when rates are high, because the rates on these mortgages are typically lower than fixed mortgage rates. A 5/1 ARM is a 30-year mortgage. For the first five years, you’ll have a fixed rate. After that, your rate will adjust once per year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than what you started with.

If you’re considering an ARM, make sure you understand how much your rate could go up each time it adjusts and how much it could ultimately increase over the life of the loan.

Should I get a HELOC? Pros and cons

If you’re looking to tap into your home’s equity, a HELOC might be the best way to do so right now — especially considering how much home prices have increased over the past couple of years. Unlike a cash-out refinance, you won’t have to get a whole new mortgage with a new interest rate, and you’ll likely get a better rate than you would with a home equity loan.

But HELOCs don’t always make sense. It’s important to consider the pros and cons.

HELOC pros

  • Only pay interest on what you borrow
  • Typically have lower rates than alternatives, including home equity loans, personal loans, and credit cards
  • If you have a lot of equity, you could potentially borrow more than you could get with a personal loan

HELOC cons

  • Rates are variable, meaning your monthly payments could go up
  • Taking equity out of your home can be risky if property values decline or you default on the loan
  • Minimum withdrawal amount may be more than you want to borrow

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022.

In the last 12 months, the Consumer Price Index rose by 7.7%. The Federal Reserve has been working to get inflation under control, and is expected to increase the federal funds target rate two more times this year, following increases at its last five meetings.

Though not directly tied to the federal funds rate, mortgage rates are sometimes pushed up as a result of Fed rate hikes and investor expectations of how those hikes will impact the economy.

Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy. 

How do I find personalized mortgage rates?

Some mortgage lenders let you customize your mortgage rate on their websites by entering your down payment amount, zip code, and credit score. The resulting rate isn’t set in stone, but it can give you an idea of what you’ll pay.

If you’re ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for prequalification with multiple lenders. A lender takes a general look at your finances and gives you an estimate of the rate you’ll pay.

If you’re farther along in the homebuying process, you have the option to apply for preapproval with several lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.

Applying for preapproval requires a hard credit pull. Try to apply with multiple lenders within a few weeks, because lumping all of your hard credit pulls into the same chunk of time will hurt your credit score less.

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