The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict,this post may contain references to products from our partners. Here's an explanation for .
The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a stricteditorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
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.
|30-year fixed jumbo||6.86%||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.
- 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
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.
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? ›
|20-Year Fixed Rate||6.88%||6.91%|
|15-Year Fixed Rate||6.27%||6.31%|
|10-Year Fixed Rate||6.42%||6.45%|