As of Feb 1, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.80%.
As of Feb 1, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.80%.
Slowing economy pushes mortgage rates down
“Mortgage rates fell this week, resuming a downward trend and erasing most of last week’s increase,” said Orphe Divounguy, Zillow Home Loans senior macroeconomist. “Waning economic indicators and fears that the Federal Reserve may go too far in its battle against inflation are likely driving the decline. New data from the PCE price index and the employment cost index show inflation is decelerating. But the economy is slowing, too. The large slowdown in domestic consumption at the end of 2022, continued weakness in manufacturing, lower than expected job growth, and declining consumer confidence all act to raise recession risk. The Federal Reserve’s decision to increase its benchmark interest rates by 25 basis points today and to telegraph a higher terminal rate was mostly anticipated by investors, likely reinforcing predictions for further decline in economic activity. Higher short-term rates generally push long term rates up. But because the risk of recession has increased, longer-term rates like 10-year treasury bonds and 30-year fixed mortgage rates are falling. Upcoming releases on wage growth, the services industry and inflation expectations are likely to keep mortgage rates volatile, but additional signs of weakness in economic data should continue to apply downward pressure.”
Additionally, the current national average 15-year fixed mortgage rate stands at 4.98%, while the current national average 5-year ARM rate is 5.56%.
Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.
Here’s a comprehensive look at the current mortgage rates for all loan types:
Today’s Average Rates for Conventional Loans
| Program | Interest Rate | APR | 1 Wk Change |
|---|---|---|---|
| 30-Year Fixed | 6.41% | 6.52% | -0.38% |
| 20-Year Fixed | 5.96% | 6.11% | -0.32% |
| 15-Year Fixed | 5.38% | 5.57% | -0.25% |
| 10-Year Fixed | 5% | 5.22% | -0% |
| 7/1 ARM | 6.13% | 6.77% | -0.14% |
| 5/1 ARM | 5.99% | 6.81% | -0.19% |
| 3/1 ARM | 0% | 0% | 0% |
A 30-Year Fixed loan of $300,000 at 6.41% APR with a $75,000 down payment will have a monthly payment of $1,878. A 20-Year Fixed loan of $300,000 at 5.96% APR with a $75,000 down payment will have a monthly payment of $2,141. A 15-Year Fixed loan of $300,000 at 5.38% APR with a $75,000 down payment will have a monthly payment of $2,432. A 10-Year Fixed loan of $300,000 at 5% APR with a $75,000 down payment will have a monthly payment of $3,181. A 7/1 ARM loan of $300,000 at 6.13% APR with a $75,000 down payment will have a monthly payment of $1,822. A 5/1 ARM loan of $300,000 at 5.99% APR with a $75,000 down payment will have a monthly payment of $1,796. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Today’s Average Rates for Government Loans
| Program | Interest Rate | APR | 1 Wk Change |
|---|---|---|---|
| 30-Year Fixed FHA | 5.42% | 6.2% | -0.18% |
| 30-Year Fixed VA | 5.68% | 6.07% | -0.26% |
| 15-Year Fixed FHA | 5.2% | 6.01% | -0.33% |
| 15-Year Fixed VA | 5.66% | 6.33% | -0.47% |
| 5/1 ARM FHA | 4.99% | 6.93% | 0% |
| 5/1 ARM VA | 5.25% | 6.38% | 0.16% |
A 30-Year Fixed FHA loan of $300,000 at 5.42% APR with a $75,000 down payment will have a monthly payment of $1,687. A 30-Year Fixed VA loan of $300,000 at 5.68% APR with a $75,000 down payment will have a monthly payment of $1,736. A 15-Year Fixed FHA loan of $300,000 at 5.2% APR with a $75,000 down payment will have a monthly payment of $2,403. A 15-Year Fixed VA loan of $300,000 at 5.66% APR with a $75,000 down payment will have a monthly payment of $2,475. A 5/1 ARM FHA loan of $300,000 at 4.99% APR with a $75,000 down payment will have a monthly payment of $1,608. A 5/1 ARM VA loan of $300,000 at 5.25% APR with a $75,000 down payment will have a monthly payment of $1,656. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Today’s Average Rates for Jumbo Loans
| Program | Interest Rate | APR | 1 Wk Change |
|---|---|---|---|
| 30-Year Fixed Jumbo | 5.97% | 6.06% | -0.02% |
| 20-Year Fixed Jumbo | 5.9% | 6.06% | -0.01% |
| 15-Year Fixed Jumbo | 5.57% | 5.73% | -0.22% |
| 10-Year Fixed Jumbo | 5.71% | 5.86% | 0% |
| 7/1 ARM Jumbo | 5.64% | 6.52% | -0.02% |
| 5/1 ARM Jumbo | 5.69% | 6.73% | -0.04% |
| 3/1 ARM Jumbo | 5.75% | 6.82% | 0% |
A 30-Year Fixed Jumbo loan of $726,201 at 5.97% APR with a $181,550 down payment will have a monthly payment of $4,341. A 20-Year Fixed Jumbo loan of $726,201 at 5.9% APR with a $181,550 down payment will have a monthly payment of $5,159. A 15-Year Fixed Jumbo loan of $726,201 at 5.57% APR with a $181,550 down payment will have a monthly payment of $5,961. A 10-Year Fixed Jumbo loan of $726,201 at 5.71% APR with a $181,550 down payment will have a monthly payment of $7,956. A 7/1 ARM Jumbo loan of $726,201 at 5.64% APR with a $181,550 down payment will have a monthly payment of $4,185. A 5/1 ARM Jumbo loan of $726,201 at 5.69% APR with a $181,550 down payment will have a monthly payment of $4,212. A 3/1 ARM Jumbo loan of $726,201 at 5.75% APR with a $181,550 down payment will have a monthly payment of $4,237. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Source: zillow.com