The Consumer Price Index (CPI) report for March 2023 was released by the Bureau of Labor Statistics on Wednesday. The annual CPI eased to 5%, down from 6% in February, marking the ninth consecutive month of decline.
The Federal Reserve, which is currently fighting inflation through monetary tightening and interest rate hikes, is closely monitoring the CPI. With core inflation still rising, the report supports the Fed’s plan to increase its key interest rate in May.
As incoming data suggests inflation remains above the desired level but shows signs of deceleration, mortgage rates have fallen for the fifth week in a row. The trend of falling mortgage rates has made homebuyers optimistic as the housing market reaches its peak in the spring and summer. The economy continues to give off mixed signals, but as long as inflation keeps cooling down, mortgage rates should remain favorable.
Today’s Mortgage Rates: April 14, 2023
Although there was a slight increase in mortgage rates across all terms from the previous week, they are still trending downwards. Today’s average rates are listed below.
- 30 Yr. Fixed: 6.14%
- 15 Yr. Fixed: 5.62%
- 30 Yr. Jumbo: 5.70%
- 5/1 ARM: 6.35%
- 30 Yr. FHA: 5.72%
- 30 Yr. VA: 5.75%
DISCLAIMER: ALL LOANS ARE SUBJECT TO CREDIT APPROVAL. INTEREST RATES ARE SUBJECT TO CHANGE DAILY AND WITHOUT NOTICE. CURRENT INTEREST RATES SHOWN ARE INDICATIVE OF MARKET CONDITIONS AND INDIVIDUAL QUALIFICATIONS AND WILL VARY UPON YOUR LOCK-IN PERIOD, LOAN TYPE, CREDIT SCORE, LOAN TO VALUE, PURPOSE, AND LENDING SOURCE.
30-year fixed-rate mortgages
The interest rate for the 30-year fixed mortgage has increased by 21 basis points from the previous week, climbing to 6.14%. The 30-year fixed-rate mortgage is the most popular type of fixed-rate mortgage and the most common mortgage term in the U.S. Despite carrying a higher interest rate compared to the 15-year fixed-rate mortgage, it provides a more manageable monthly payment.
15-year fixed-rate mortgages
The average interest rate for a 15-year fixed-rate mortgage is currently 5.62%, a 10 basis point increase from the previous week. In contrast to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage offers a shorter repayment term, which may result in a higher monthly payment but less interest paid overall.
30-year jumbo mortgages
The interest rate for a 30-year fixed jumbo loan remains at 5.70%. Jumbo loans typically carry higher interest rates compared to conventional loans because you’re borrowing a larger amount. However, due to current economic conditions, jumbo loan rates are currently 44 basis points lower than 30-year fixed loan rates.
5/1 adjustable-rate mortgages
The average interest rate for a 5/1 adjustable-rate mortgage (ARM) is 6.35%. Generally, adjustable-rate mortgages have lower rates than fixed-rate mortgages, however, currently, the 5/1 ARM’s average interest rate is 21 basis points higher than the average 30-year fixed-rate mortgage.
One crucial element of adjustable-rate mortgages is that their interest rates can fluctuate based on the loan’s terms and market conditions. If you intend to sell or refinance your property before the rate adjusts, selecting an ARM might be a sensible decision. However, if you don’t, you could wind up with a higher interest rate if market rates increase.
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