The average rate offered to homebuyers using a conventional 30-year fixed mortgage rose to 4.47% from 4.44% the previous business day. The average for a 15-year fixed mortgage rose to 3.58% from 3.55% the previous business day. Both are the highest these averages have been since 2020, when the 30-year got as high as 4.71% and the 15-year reached 3.99%. 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). Soaring inflation has generally pushed yields much higher this year, and a surge in oil prices brought on by the war and sanctions against Russia helped drive them even higher this week. (Yields have also fallen sharply on some days since the war began, making for a very volatile Treasury and mortgage rate market.) Even at these peaks, mortgages weren’t all that unaffordable by historic standards. According to a Freddie Mac measure that dates back farther than our data, both the 30-year and 15-year average about 1 percentage point higher than the record low reached last year. 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 rose to 4.47%, up from 4.44% the previous business day. A week ago, it was 4.25%. For every $100,000 borrowed, monthly payments would cost about $504.90, or $12.96 more than a week ago.30-year fixed (FHA): The average rate rose to 4.4% from 4.39% the previous business day. A week ago, it was 4.03%. For every $100,000 borrowed, monthly payments would cost about $500.76, or $21.61 more than a week ago.30-year fixed (VA): The average rate fell to 4.81% from 4.82% the previous business day. A week ago, it was 4.41%. For every $100,000 borrowed, monthly payments will cost about $525.27, or $23.92 more than a week ago.
15-Year Mortgage Rate Rises
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 rose to 3.58%, up from 3.55% the previous business day. A week ago, it was 3.36%. For every $100,000 borrowed, monthly payments would cost about $718.82, or $10.79 more than a week ago.
Jumbo Mortgage Rates Increase
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 rose to 4.03% from 3.99% the previous business day. A week ago, it was 3.84%. For every $100,000 borrowed, monthly payments would cost about $479.15, or $10.91 more than a week ago.Jumbo 15-year fixed: The average rate rose to 3.65% from 3.52% the previous business day. A week ago, it was 3.4%. For every $100,000 borrowed, monthly payments would cost about $722.27, or $12.29 more than a week ago.
Refinance Rates Climb
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 rose to 4.55% from 4.53% the previous business day. A week ago, it was 4.33%. For every $100,000 borrowed, monthly payments would cost about $509.66, or $13.03 more than a week ago.15-year fixed: The average rate to refinance rose to 3.68% from 3.65% the previous business day. A week ago, it was 3.43%. For every $100,000 borrowed, monthly payments would cost about $723.75, or $12.30 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.
