Mortgage rates are down over the past week, with the 30-year fixed rate mortgage at 7.77%. The average rate on a 30-year fixed rate mortgage surpassed 8% in mid-October for the first time since 2000.
The Federal Reserve meetings are underway, but there has been no indication that it plans to change its key interest rate this month. However, many experts predict a rate increase before the end of the year. This, along with rising tensions in the Middle East and the recently ended autoworkers strike, are some of the possible key factors in the continued upward trajectory of the national average interest rate.
Here are today’s average mortgage rates:
- 30-year fixed mortgage rate: 7.77%
- 15-year fixed mortgage rate: 6.98%
- 5/6 ARM mortgage rate: 7.51%
- Jumbo mortgage rate: 7.61%
Current Mortgage Rates
| Product | Rate | Last Week | Change |
| 30-Year Fixed Rate | 7.77% | 8.16% | -0.39% |
| 15-Year Fixed Rate | 6.98% | 7.34% | -0.36% |
| 5/6 ARM | 7.51% | 7.58% | -0.07% |
| 7/6 ARM | 7.61% | 7.78% | -0.17% |
| 10/6 ARM | 7.71% | 7.88% | -0.17% |
| 30-Year Fixed Rate Jumbo | 7.61% | 7.91% | -0.30% |
| 30-Year Fixed Rate FHA | 7.41% | 7.78% | -0.37% |
| 30-Year Fixed Rate VA | 7.41% | 7.77% | -0.36% |
Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Monday, November 06, 2023. Actual rates may vary.
Mortgage Rates for Home Purchase
30-year fixed-rate mortgages are down, -0.39%
The average 30-year fixed-mortgage rate is 7.77%. Since the same time last week, the rate is down, changing -0.39%.
At the current average rate, you’ll pay $717.79 per month in principal and interest for every $100,000 you borrow. You’re paying less compared to last week when the average rate was 8.16%.
15-year fixed-rate mortgages are down, -0.36%
The average rate you’ll pay for a 15-year fixed-mortgage is 6.98%, a decrease of -0.36% compared to last week.
Monthly payments on a 15-year fixed-mortgage at a rate of 6.98% will cost approximately $897.71 per $100,000 borrowed. With the rate of 7.34% last week, you would’ve paid $917.94 per month.
5/6 adjustable-rate mortgages are down, -0.07%
The average rate on a 5/6 adjustable rate mortgage is 7.51%, a decrease of -0.07% over the last seven days.
Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.
Monthly payments on a 5/6 ARM at a rate of 7.51% will cost approximately $699.90 per $100,000 borrowed over the first 5 years of the loan.
Jumbo loan interest rates are down, -0.30%
The average jumbo mortgage rate today is 7.61%, a decrease of -0.30% over the past week.
Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.
| Product | Monthly P&I per $100,000 | Last Week | Change |
| 30-Year Fixed Rate | $717.79 | $744.95 | -$27.16 |
| 15-Year Fixed Rate | $897.71 | $917.94 | -$20.23 |
| 5/6 ARM | $699.90 | $704.70 | -$4.80 |
| 7/6 ARM | $706.76 | $718.49 | -$11.73 |
| 10/6 ARM | $713.65 | $725.42 | -$11.77 |
| 30-Year Fixed Rate Jumbo | $706.76 | $727.50 | -$20.74 |
| 30-Year Fixed Rate FHA | $693.06 | $718.49 | -$25.43 |
| 30-Year Fixed Rate VA | $693.06 | $717.79 | -$24.73 |
Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.
Factors That Affect Your Mortgage Rate
Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions, and other factors all play into how rates move from week-to-week and month-to-month.
But outside of macroeconomic trends, several factors specific to the borrower will affect the mortgage interest rate. They include:
- Your financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
- Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
- Where you live: Mortgage rates vary by where you are buying a home.
- Whether you are a first-time homebuyer: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
- Your lender: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.
How To Shop for the Best Mortgage Rate
Shopping for a mortgage can be overwhelming, but it’s shown to be worth it. In a recent study by Freddie Mac, researchers found that homeowners may save between $600 and $1,200 annually by shopping around for the best rate. That’s why we put together steps on how to shop for your best mortgage rate.
1. Check your credit scores and credit report
Your credit situation will likely determine the type of mortgage you pursue and your rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be your best option if your FICO score is between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate.
Mortgage lenders review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans.
2. Know your mortgage options
There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important to do your research and apply for the mortgage program that best fits your financial situation.
The table below describes each program, highlighting minimum credit score and down payment requirements.
Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms range from 10 to 30 years, though most homeowners opt for a 15 or 30 year mortgage.
3. Compare quotes across multiple lenders
Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see your “real” rate as figures listed online may not be representative of your particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow you to prequalify for a mortgage and receive a tentative loan offer with no impact to your credit score.
After gathering your loan documents – including proof of income, assets and credit – you may also apply for pre-approval. Pre-approval will let you know where you stand with lenders and may also improve your negotiating power with home sellers.
4. Review your Loan Estimates
To fully understand which lender is offering the cheapest loan overall, take a look at the Loan Estimate provided by each lender. Your Loan Estimate will list not only the mortgage rate, but also your annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points.
By comparing Loan Estimates across lenders, you can see the full breakdown of costs. One lender may offer lower interest rates, but higher fees and vice versa. You can then decide whether you prefer saving over the lifetime of the mortgage or want to prioritize lower upfront costs with your home purchase.
5. Consider negotiating with lenders on rates
Mortgage lenders want your business. This means that you may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower your rate by much, but even a few basis points may save you more than you think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.
Expert Forecasts for Mortgage Rates
Mortgage interest rates climbing steadily throughout the first half of 2023 and now exceeding 8%, prospective homeowners may be wondering: Will there be any relief going forward? Some experts are optimistic.
Fannie Mae and the Mortgage Bankers Association (MBA) project that rates will fall going into 2024 and throughout next year. In fact, the MBA predicts that rates will end 2024 at 6.1%.
More Mortgage Resources
Methodology
Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Source: marketwatch.com