Published January 23, 2024 at 9:33 AM UTC
Editor's note: Blueprint may earn commission from affiliate partner links featured on this site. This committee does not influence the editor's opinions or ratings. See our full Advertiser Disclosure Policy.
Getty Images
Mortgage interest rates are on the rise across the board. Current average mortgage interest rates are:
- Fixed for 30 years: 7.17%
- Fixed for 15 years: 6.42%
- 30 year jumbo: 7.21%
*Data was accurate as of January 22, 2024, and was the most recent available.
30 year fixed mortgage rate
The current 30-year fixed mortgage rate is 7.17%, higher than last week's rate of 7.12%, according to data from Kyrinos. This is down from 7.19% last month. At the same time last year, the 30-year fixed rate was 5.75%, and current rates are much higher than they were a year ago.
At the current 30-year fixed rate, you'll pay about $683 per month for every $100,000 you borrow, up from about $680 last week.
Ready to buy? Compare the best mortgage lenders
15 year fixed mortgage rate
The current 15-year fixed mortgage rate is 6.42%, slightly up from 6.27% last week. This is an increase from 6.30% last month. His 15-year fixed rate at the same time last year was 4.99%, but his current rate is much higher than it was a year ago.
At the current 15-year fixed rate, you'll pay about $869 a month for every $100,000 you borrow, up from about $862 last week.
30 year jumbo mortgage rate
The current 30-year jumbo mortgage rate is 7.21%, slightly higher than last week's rate of 7.18%. This is up from 7.12% last month. The 30-year jumbo rate at the same time last year was 5.43%, and the current rate is more than 2 percentage points higher than a year ago.
At the current 30-year jumbo rate, you'll pay about $683 per month for every $100,000 you borrow, up from about $679 last week.
methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For a conventional mortgage, the loan amount is calculated based on his $350,000 owner-occupied one-unit property. For jumbo mortgages, the loan amount is $766,550. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher, and a 60-day lock period.
Frequently asked questions (FAQ)
Mortgage interest rates are determined by a variety of factors, including the overall economy, inflation, and the actions of the Federal Reserve. Mortgage lenders set loan interest rates based on these economic factors.
The interest rate you're offered on a mortgage depends not only on the lender, but also on your credit score, income, debt-to-income (DTI) ratio, and other financial profiles.
If you choose a rate lock, you can usually lock it in for 30 to 60 days, depending on the lender. In some cases, you may be able to lock in your rate for up to 120 days.
Keep in mind that while some lenders may let you lock in your mortgage rate for free, you'll likely have to pay a fee the longer you lock in. This fee typically ranges from 0.25% to 0.5% of the loan amount. If you wish to extend the lock period, you may be charged a fee, typically 0.375% of the loan amount.
There are several strategies to get the best mortgage rates, including:
- Check your credit: Apply for a home loan, lenders will check your credit to determine your creditworthiness and interest rate. Generally, the higher your credit score, the lower your interest rate. Therefore, we recommend that you check your credit status to see where you stand before applying. If you find errors on your credit report, you can dispute them with the appropriate credit bureaus to potentially boost your score.
- Compare lenders: Taking the time to compare as many lender options as possible will help you find the best deal. In addition to interest rates, be sure to consider each lender's terms, fees, and eligibility requirements.
- Improve your credit score: If your credit score is less than perfect and you can wait to apply for a mortgage, it may be worth the effort. improve credit We'll give you advance notice to help you get a better rate in the future. Ways to improve your credit include paying all your bills on time and aiming to keep your credit utilization ratio (the amount of credit you've used compared to your credit limit) below 30% on your credit cards and lines of credit. This can be mentioned.
- Debt Reduction: Paying off your debt can lower your DTI ratio, which measures your monthly debt payments compared to your income. A lower DTI ratio can result in a lower interest rate because it appears to be less risky in the eyes of lenders.
- Choose a shorter repayment term: Lenders typically offer lower interest rates to borrowers who choose a shorter repayment term. For example, a 15-year mortgage may have a lower interest rate than his 30-year loan.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and you are encouraged to seek individual advice from a qualified professional regarding your specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. Any opinions, analyses, reviews, or recommendations expressed in this article are solely those of Blueprint editorial staff. Blueprint adheres to strict editorial integrity standards. Information is accurate as of the date of publication, but please always check the provider's website for the most up-to-date information.
