Today's mortgage and refinance rates, April 3, 2023 - Most rates unchanged (2023)

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Mortgage interest rates were mostly the same compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 5/1 ARMs and jumbo loans were flat.

Mortgage rates have been on a wild ride of late, with the 30-year fixed now flirting with the once-unthinkable threshold of 7 percent as the Federal Reserve continues to crack down on inflation.

“The speed with which mortgage rates have increased in recent months has been whiplash-inducing and the cumulative effect — from near 3 percent at the beginning of 2021 to near 7 percent now — would’ve seemed laughably unlikely a year ago,” says Greg McBride, CFA, Bankrate chief financial analyst. “Inflation running at 40-year highs will do that.”

For the ninth consecutive time, the central bank raised rates again at its March 22 meeting — but by a modest 0.25 percentage point, or 25 basis points. While Fed officials had been telegraphing an increase of 0.5 percentage point, or 50 basis points, that changed with a sudden banking crisis. Over the March 10 weekend, both Silicon Valley Bank and Signature Bank failed in rapid succession, marking the second- and third-largest bank collapses in U.S. history. Mortgage rates tumbled in the aftermath of the bank failures, and it’s possible that the continuing round of financial uncertainty — several other banks have been bought up or bailed out — will be favorable for borrowers.

Today's mortgage rates for home purchase
ProductRateLast weekChange
30-year fixed6.81%6.81%N/C
15-year fixed6.12%6.04%+0.08
5/1 ARM5.72%5.72%N/C
30-year fixed jumbo6.86%6.86%N/C

Rates as of April 3, 2023.

These rates are averages based on the assumptions shown here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, April 3rd, 2023 at 7:30 a.m.

You can save thousands of dollars over the life of your mortgage by getting multiple offers.

"All too often, some homeowners 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, Bankrate senior economic analyst. "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?"

Mortgage rates for home purchase

Current 30 year mortgage rate stays put

The average rate for a 30-year fixed mortgage is 6.81 percent, unchanged over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.08 percent.

At the current average rate, you'll pay principal and interest of $652.59 for every $100,000 you borrow.

15-year mortgage moves higher,+0.08%

The average rate for a 15-year fixed mortgage is 6.12 percent, up 8 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $850 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, 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 more quickly.

5/1 ARM rate flat for the week

The average rate on a 5/1 adjustable rate mortgage is 5.72 percent, unchanged from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be much 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 5.72 percent would cost about $582 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 holds firm

The average jumbo mortgage rate today is 6.86 percent, unaltered over the last week. A month ago, the average rate on a jumbo mortgage was higher, at 7.13 percent.

At today's average rate, you'll pay $655.93 per month in principal and interest for every $100,000 you borrow.

Rate review: How mortgage rates have changed this week

  • 30-year fixed mortgage rate: 6.81%, the same as last week
  • 15-year fixed mortgage rate: 6.12%, up from 6.04% last week, +0.08
  • 5/1 ARM mortgage rate: 5.72%, unchanged from last week
  • Jumbo mortgage rate: 6.86%, the same as last week

Interested in refinancing? See rates for home refinance

30-year mortgage refinance rate moves up, +0.10%

The average 30-year fixed-refinance rate is 6.97 percent, up 10 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.06 percent.

At the current average rate, you'll pay $663.29 per month in principal and interest for every $100,000 you borrow. That's $6.70 higher compared with last week.

Where mortgage rates are headed

The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.

"Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far," says McBride. "The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades."

Comparing different mortgage terms

The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

When to lock your mortgage rate

A rate lock guarantees your mortgage interest rate for a specified period of time. Lenders often offer 30-day rate locks for a nominal fee or roll the price of the lock into your loan. Some lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for just two weeks because they don’t want to take on unnecessary risk.

The benefit of a rate lock is that if interest rates rise, you’re locked into the guaranteed rate. You may be able to find a lender that offers a floating rate lock. A floating rate lock lets you get a lower rate if interest rates decline before closing your loan. It could be worth the cost in a declining rate environment. Because there is no guarantee of where mortgage rates will head in the future, it may be smart to lock in a low rate instead of holding out on rates for potentially decline further.

Keep in mind that during the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, and expect refinancing to take at least a month.

Learn more:

  • Loans and programs for first time homebuyers
  • Everything to know about FHA loans
  • What's the point of a cash out refinance?
  • What is a mortgage, and how do they work?
  • How to get a mortgage
  • Mortgage calculator
  • Best mortgage lenders

Featured lenders, April 3, 2023

  • Movement Mortgage Review
  • Valley National Bank Mortgage Review
  • Truist Mortgage Review
  • CFBank Mortgage Review

FAQs

Will mortgage rates go down April 2023? ›

Mortgage Rate Predictions for April 2023

A sustained drop could push mortgage rates into the 5% range late in the second quarter or in the second half of 2023, but that's definitely not guaranteed. Mortgage Bankers Association (MBA): “Long-term rates have already peaked.

What are mortgage interest rates expected to be in 2023? ›

While it expects the Fed to continue increasing rates to tame inflation, it believes that long-term rates have already peaked. “We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It reiterated the fourth-quarter 5.2% rate prediction in a Jan. 19 forecast.

What will refinance rates be in 2023? ›

Keith Gumbinger, vice president of mortgage website HSH.com: “[We] should see less volatility for 30-year fixed mortgage rates in 2023, which are likely to hold a range between 5.875% and 6.875%.

What is the trend for refinance rates today? ›

Current mortgage and refinance interest rates
ProductInterest RateAPR
20-Year Fixed Rate6.88%6.91%
15-Year Fixed Rate6.27%6.31%
10-Year Fixed Rate6.42%6.45%
5-1 ARM5.81%7.51%
5 more rows

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