Mortgage Interest Rates Today, October 26, 2023 | Rates Calm Somewhat After Recent Spikes
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Mortgage rates are up only a few basis points compared to where they were last week. Depending on their credit score, borrowers could see 30-year mortgage rates between 7.544% and 9.133% on a $300,000 loan, according to myFICO.
Average rates shot up to nearly 8% last week and remain at 23-year highs.
Rates are expected to fall throughout the next couple of years, but it could take a while before we see a substantial improvement in affordability. In their latest forecast, Fannie Mae researchers predicted that rates will drop to 6.7% by the end of 2024.
If you're thinking about buying a home, you might get a better deal on your mortgage by waiting a year or two. This would also give you time to save for a larger down payment, allowing you to snag an even lower mortgage rate.
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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.
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Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Inch up Very Slightly (+0.05%)
The current average 30-year fixed mortgage rate is 7.68%, up five basis points since this time last week. This rate is up quite a bit compared to a month ago, when it was 6.98%.
At 7.68%, you'll pay $712 monthly toward principal and interest for every $100,000 you borrow.
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.
20-Year Fixed Mortgage Rates go Down (-0.10%)
The average 20-year fixed mortgage rate is down 10 basis points from last week and sits at 7.53%. This time in September, the rate was 6.89%.
With a 7.53% rate on a 20-year term, your monthly payment will be $807 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Increase (+0.17%)
The average 15-year mortgage rate is 6.89%, an increase from last week. It's also up from this time last month, when it was 6.41%.
With a 6.89% rate on a 15-year term, you'll pay $893 each month toward principal and interest for every $100,000 borrowed.
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.
7/1 ARM Rates Spike (+0.64%)
The 7/1 adjustable mortgage rate is up more than a half a percentage point compared to last week, currently at 7.81%. It was 7.58% a month ago.
At 7.81%, your monthly payment would be $721 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Increase Somewhat (+0.19%)
The average 5/1 ARM rate is 7.38%, a 19-point increase from last week. This rate is almost flat compared to where it was a month ago, when it was 7.32%.
Here's how a 7.38% rate would affect you for the first five years: You'd pay $691 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Tick Up (+0.05)
The average 30-year FHA interest rate is 6.80% today, which is a tiny bit higher than it was a week ago. This rate was 6.04% this time last month.
At 6.80%, you would pay $652 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Hover Around 7% (+0.09%)
The current VA mortgage rate is 6.97%, nine basis points up from this time last week. VA rates spiked above 7% for the first time last week and have remained around this benchmark. This rate was 6.26% this time last month.
With a 6.97% rate, your monthly payment would be $663 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates go Up (+0.18%)
The average 30-year refinance rate is 7.90%, which is a bit higher than it was last week. It's up significantly compared to a month ago, when it was 7.43%.
Here's how a 7.90% rate would affect your monthly payments: You'd pay $727 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates are a Little Higher (+0.10%)
The current 20-year fixed refinance rate is 7.52%, which is up compared to a week ago. This rate was 7.34% this time in September.
A 7.52% rate on a 20-year term will result in a $807 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates up Half a Percentage Point (+0.50%)
The average 15-year fixed refinance rate is 7.19%, which is 50 points higher than it was it was last week. This rate is also up compared to this time in September, when it was at 6.60%.
A 7.19% rate on a 15-year term means you'll pay $909 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Fall (-0.32%)
The average 7/1 ARM refinance rate is 7.25%, down from this time last week. A month ago, it was higher at 7.97%.
Refinancing into a 7/1 ARM with a 7.25% rate means your monthly payment toward principal and interest will be $682 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Spike to 8% (+0.46%)
The 5/1 ARM refinance rate is 8.00%, up from last week. It's also up from this time last month, when it was 7.72%.
A 8.00% rate will result in a monthly payment of $734 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Increase Dramatically (+0.69%)
The 30-year FHA refinance rate is 7.19%, which is up quite a bit compared to last week. This rate was 5.92% this time last month.
A 7.19% refinance rate would lead to a $678 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Tick Up (+0.13%)
The average 30-year VA refinance rate is 7.11%, which is up a bit from last week. This rate was 6.57% a month ago.
At 7.11%, your new monthly payment would be $673 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they're higher than they were in October 2022.
As inflation starts to come down, mortgage rates will recede somewhat as well. If we experience a recession, rates may drop a little faster. But average 30-year fixed rates will likely remain somewhere in the 7% to 8% range in the near term.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.