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National mortgage rates moved higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.
While it’s expected that rates will gradually come down this year, the path might be bumpy.
“Mortgage rates will be bouncy week-to-week but will most likely settle towards 6 percent by the year end,” said Lawrence Yun, chief economist for the National Association of Realtors.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates and affirmed its plan to slash rates this year. Rate fluctuations affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says Greg McBride, CFA, Bankrate chief financial analyst. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.29% | 7.14% | +0.15 |
| 15-year fixed | 6.62% | 6.52% | +0.10 |
| 5/1 ARM | 6.15% | 6.14% | +0.01 |
| 30-year fixed jumbo | 7.35% | 7.19% | +0.16 |
Rates accurate as of February 20, 2024.
These rates are averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, February 20th, 2024 at 7:30 a.m.
30-year mortgage moves up, +0.15%
Today's average rate for the benchmark 30-year fixed mortgage is 7.29 percent, up 15 basis points since the same time last week. Last month on the 20th, the average rate on a 30-year fixed mortgage was lower, at 7.03 percent.
At the current average rate, you'll pay a combined $684.89 per month in principal and interest for every $100,000 you borrow. That's up $10.16 from what it would have been last week.
The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
- Lower monthly payment: The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
- Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
- Buying power: With lower payments, you might qualify for a larger loan amountor 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.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate advances, +0.10%
The average rate for the benchmark 15-year fixed mortgage is 6.62 percent, up 10 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $878 per $100,000 borrowed. That's obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM climbs, +0.01%
The average rate on a 5/1 adjustable rate mortgage is 6.15 percent, ticking up 1 basis point over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be considerably 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 6.15 percent would cost about $609 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 interest rate climbs, +0.16%
The average rate for a 30-year jumbo mortgage is 7.35 percent, up 16 basis points from a week ago. This time a month ago, the average rate on a jumbo mortgage was lower at 7.06 percent.
At the average rate today for a jumbo loan, you'll pay principal and interest of $688.97 for every $100,000 you borrow. That's $10.86 higher compared with last week.
Mortgage refinance rates
Current 30 year mortgage refinance rate increases, +0.13%
The average 30-year fixed-refinance rate is 7.31 percent, up 13 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 7.18 percent.
At the current average rate, you'll pay $686.25 per month in principal and interest for every $100,000 you borrow. That's an additional $8.82 per $100,000 compared with last week.
Where are mortgage rates heading?
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Yun, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What today's rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
"All too often, some [homebuyers] 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, senior economic analyst for Bankrate. "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?”
More on current mortgage rates
- Mortgage rate trend predictions for this week
- The latest mortgage news for this week
- Compare current mortgage rates for today
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
