Current Mortgage Rates for 2023

Current Mortgage Rates for 2023

Today’s Current Mortgage Rates

The average APR fell on a 30-year fixed mortgage today, slipping to 6.40% from 6.57%. Meanwhile, the average APR on the 15-year fixed mortgage is 5.66%. This same time last week, the 15-year fixed-rate mortgage APR was at 5.89%. Rates are quoted as APR.

The average APR on the 30-year fixed-rate jumbo mortgage sits at 6.40%. The average APR on a 5/1 ARM is 7.40%. Last week, the average APR on a 5/1 ARM was 7.46%.

Where Mortgage Rates are Headed Into 2023

Experts are forecasting that the 30-year, fixed-mortgage rate will stay within the 5% to 6% range in later 2023, though some predict it might get higher.

Experts expect the Federal Reserve’s ongoing monetary policies to continue to put some upward pressure on mortgage rates in the coming months. While mortgage rates are directly impacted by U.S. Treasury bond yields, rising inflation and the Fed’s actions to contain it by hiking the federal funds rate, tend to push mortgage rates upward.

Here are more detailed predictions from economists, as of January 2023:

  • Compass U.S. region president, Neda Navab: There have been signals that mortgage interest rates may be at or near their peak, given recent encouraging news around inflation and a corresponding drop in the U.S. Treasury yields that help set mortgage rates. A sustained drop could push mortgage rates into the 5% range late in the second quarter or in the second half of 2023, but that’s definitely not guaranteed.
  • Mortgage Bankers Association (MBA): “Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”
  • National Association of Realtors (NAR) senior economist and director of forecasting, Nadia Evangelou: “If inflation continues to slow down–and this is what we expect for 2023–mortgage rates may stabilize below 6% in 2023.” Many buyers want to believe that the 3% may come again, however, we don’t expect to see that.
  • Freddie Mac: Forecasts the average 30-year mortgage rate to start at 6.6% in Q1 2023 and end up at 6.2% in Q4 2023.


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What the Forecast Means for You

Lending has become increasingly more costly for homeowners and borrowers alike as mortgage rates continue to rise. Mortgage rates doubled in 2022, with peaks not seen in more than 20 years. And higher interest rates means higher monthly payments for borrowers.

This also means time is running out for homeowners who hope to lock in a lower interest rate by refinancing.

Today’s Mortgage Interest Rates

Loan termInterest rateAPRMonthly P&I Per $100,000
30-year fixed6.39%6.40%$625
15-year fixed5.64%5.66%$825
30-year jumbo6.39%6.40%$625
5/1 ARM5.41%7.40%$562

How are Mortgage Rates Determined?

Mortgage rates, in general, are determined by a wide range of economic factors, including the yield U.S. Treasury bonds, the economy, mortgage demand and the Federal Reserve monetary policy.

Borrowers have no control over the wider economy, but they can control their own financial picture to get the best rate available. Typically, borrowers with higher FICO scores, lower debt-to-income (DTI) ratios and a larger down payment can lock in lower rates.

Related: How To Improve Your Credit Score

What’s a Good Mortgage Rate?

Mortgage rates can change drastically and often—or stay the same for many weeks. The important thing for borrowers to know is the current average rate. You can check Forbes Advisor’s mortgage rate tables to get the latest information.

The lower the rate, the less you’ll pay on a mortgage. Depending on your financial situation, the rate you’re offered might be higher than what lenders advertise or what you see on rate tables.

If you’re hoping to get the most competitive rate your lender offers, talk to them about what you can do to improve your chances of getting a better rate. This might entail improving your credit score, paying down debt or waiting a little longer to strengthen your financial profile.


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Best Mortgage Lenders

There are many ways to search for the best mortgage lenders, including through your own bank, a mortgage broker or shopping online. To help you with your search, here are some of the top mortgage lenders based on our list of this month’s best mortgage lenders.

How to Compare Mortgage Rates

Borrowers who comparison shop tend to get lower rates than borrowers who go with the first lender they find. You can compare rates online to get started. However, to get the most accurate quote, you can either go through a mortgage broker or apply for a mortgage through various lenders.

The advantage of going with a broker is you do less of the work and you’ll also get the benefit of their lender knowledge. For example, they might be able to match you with a lender who’s suited for your borrowing needs, this could be anything from a low down payment mortgage to a jumbo mortgage. However, depending on the broker, you might have to pay a fee.

Applying for a mortgage on your own is straightforward and most lenders offer online applications, so you don’t have to drive to an office or branch location. Additionally, applying for multiple mortgages in a short period of time won’t show up on your credit report as it’s usually counted as one query.

Finally, when you’re comparing rate quotes, be sure to look at the APR, not just the interest rate. The APR reflects the total cost of your loan on an annual basis.

Forbes Advisor’s Insight On the Housing Market

Predictions indicate that home prices will continue to rise and new home construction will continue to lag behind, putting buyers in tight housing situations for the foreseeable future.

To cut costs, that could mean some buyers would need to move further away from higher-priced cities into more affordable metros. For others, it could mean downsizing, or foregoing amenities or important contingencies like a home inspection. However, be careful about giving up contingencies because it could cost more in the long run if the house has major problems not fixed by the seller upon inspection.

Another important consideration in this market is determining how long you plan to stay in the home. People who are buying their “forever home” have less to fear if the market reverses as they can ride the wave of ups and downs. But buyers who plan on moving in a few years are in a riskier position if the market plummets. That’s why it’s so important to shop at the outset for a realtor and lender who are experienced housing experts in your market of interest and who you trust to give sound advice.

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