As of Jan. 25, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.85%.
As of Jan. 25, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.85%.
Mortgage rates edge slightly higher as investors weigh recession risks
“Mortgage rates ticked up this week, the first weekly increase of the year, as the market jockeys for position ahead of next week’s updates on monetary policy and the labor market,” said Orphe Divounguy, Zillow Home Loans senior macroeconomist. “The end of China’s zero-Covid policy, lower inflation in Europe and in the U.S., and evidence of enduring labor market strength all suggest that the risk of a recession may be waning. The improving conditions – and perceived reduced risk of an accelerated pace of benchmark interest rate hikes – have helped mortgage rates fall steadily to begin the year. But while the Federal Reserve appears set to slow rate hikes, lower risk of recession limits how far interest rates are likely to fall. All that said, the outlook for rates remains cloudy. Indeed, data released this week from the Conference Board and the S&P Global Flash US PMI Composite Output Index suggest that a recession is still very much a possibility. Investors will be keeping a close eye on the PCE price index, the January jobs report, and the Fed – as the FOMC meets next week – for more clarity on the economy’s current state and the central bank’s plans going forward. More evidence of weakness in leading economic indicators would help to resume the downward pressure on mortgage rates.
Additionally, the current national average 15-year fixed mortgage rate stands at 4.88%, while the current national average 5-year ARM rate is 5.54%.
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 | 6.05% | 6.15% | 0% |
| 20-Year Fixed | 5.65% | 5.79% | -0% |
| 15-Year Fixed | 4.97% | 5.13% | 0.1% |
| 10-Year Fixed | 4.68% | 4.88% | 0.29% |
| 7/1 ARM | 5.92% | 6.62% | 0.02% |
| 5/1 ARM | 5.56% | 6.59% | 0.04% |
| 3/1 ARM | 0% | 0% | 0% |
A 30-Year Fixed loan of $300,000 at 6.05% APR with a $75,000 down payment will have a monthly payment of $1,807. A 20-Year Fixed loan of $300,000 at 5.65% APR with a $75,000 down payment will have a monthly payment of $2,089. A 15-Year Fixed loan of $300,000 at 4.97% APR with a $75,000 down payment will have a monthly payment of $2,367. A 10-Year Fixed loan of $300,000 at 4.68% APR with a $75,000 down payment will have a monthly payment of $3,135. A 7/1 ARM loan of $300,000 at 5.92% APR with a $75,000 down payment will have a monthly payment of $1,782. A 5/1 ARM loan of $300,000 at 5.56% APR with a $75,000 down payment will have a monthly payment of $1,714. 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 | 5.26% | 6.04% | 0.12% |
| 30-Year Fixed VA | 5.48% | 5.89% | -0.01% |
| 15-Year Fixed FHA | 4.88% | 5.65% | 0.09% |
| 15-Year Fixed VA | 5.17% | 5.83% | 0.28% |
| 5/1 ARM FHA | 5.25% | 7.05% | -0% |
| 5/1 ARM VA | 5.43% | 6.54% | -0.13% |
A 30-Year Fixed FHA loan of $300,000 at 5.26% APR with a $75,000 down payment will have a monthly payment of $1,657. A 30-Year Fixed VA loan of $300,000 at 5.48% APR with a $75,000 down payment will have a monthly payment of $1,699. A 15-Year Fixed FHA loan of $300,000 at 4.88% APR with a $75,000 down payment will have a monthly payment of $2,353. A 15-Year Fixed VA loan of $300,000 at 5.17% APR with a $75,000 down payment will have a monthly payment of $2,399. A 5/1 ARM FHA loan of $300,000 at 5.25% APR with a $75,000 down payment will have a monthly payment of $1,656. A 5/1 ARM VA loan of $300,000 at 5.43% APR with a $75,000 down payment will have a monthly payment of $1,690. 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 | 6.17% | 6.24% | -0.06% |
| 20-Year Fixed Jumbo | 6.32% | 6.46% | -0.16% |
| 15-Year Fixed Jumbo | 5.47% | 5.61% | -0.02% |
| 10-Year Fixed Jumbo | 5.71% | 5.86% | -0.07% |
| 7/1 ARM Jumbo | 5.59% | 6.48% | 0.03% |
| 5/1 ARM Jumbo | 5.63% | 6.68% | 0.01% |
| 3/1 ARM Jumbo | 5.75% | 6.82% | -0.13% |
A 30-Year Fixed Jumbo loan of $726,201 at 6.17% APR with a $181,550 down payment will have a monthly payment of $4,434. A 20-Year Fixed Jumbo loan of $726,201 at 6.32% APR with a $181,550 down payment will have a monthly payment of $5,338. A 15-Year Fixed Jumbo loan of $726,201 at 5.47% APR with a $181,550 down payment will have a monthly payment of $5,922. 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 5.59% APR with a $181,550 down payment will have a monthly payment of $4,166. A 5/1 ARM Jumbo loan of $726,201 at 5.63% APR with a $181,550 down payment will have a monthly payment of $4,181. 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