U.S. mortgage rates continue to climb, reaching their highest level since 2000, causing more homebuyers to exit the market. A survey conducted by the Mortgage Bankers Association (MBA) found that home applications have decreased by 6.0 percent since the previous week. Data from this survey also indicates that the size of loan amounts has slightly decreased since the previous week.
High interest rates, coupled with limited housing inventory, contribute to elevated house prices, resulting in a decline in home sales and creating affordability issues for many buyers.
According to Joel Kan, the Vice President and Deputy Chief Economist at the MBA, there was an uptick in applications for adjustable-rate mortgages (ARMs) during the week. The share of ARMs increased to 8 percent, indicating that some borrowers are exploring these options as a means to reduce their payments.
ARMs can provide a way to lower initial monthly payments, allowing borrowers to allocate funds to other financial priorities. As with any financial decision, individuals should carefully consider their unique circumstances and consult with financial professionals to make informed choices aligned with their long-term goals.
Today’s mortgage rates: october 6, 2023
Mortgage rates persist at elevated levels, showing an upward trend in all primary loan categories, with the notable exception of adjustable-rate mortgages (ARMs).
| Product | Rate | Last Week | Change |
| 30-year fixed | 7.69% | 7.60% | ⇧ + 0.09 |
| 15-year fixed | 7.01% | 6.89% | ⇧ + 0.12 |
| 30-year jumbo | 7.74% | 7.60% | ⇧ + 0.14 |
| 5/1 ARM | 7.06% | 7.08% | ⇩ + 0.02 |
| 30-year FHA | 7.12% | 7.05% | ⇧ + 0.07 |
| 30-year VA | 7.14% | 7.06% | ⇧ + 0.08 |
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.
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Today, the 30-year fixed-rate mortgage has climbed to 7.69%, experiencing a 9 basis point rise from the previous week. Despite its higher interest rate compared to the 15-year mortgage, many buyers choose the 30-year option due to its more economical monthly payments.
15-year fixed-rate mortgages
The interest rate for a 15-year fixed-rate mortgage has increased by 12 basis points, reaching 7.01%. Choosing a 15-year mortgage allows borrowers to accelerate their loan repayment compared to a 30-year option. While this leads to higher monthly payments, it also means paying considerably less total interest over the life of the loan.
30-year jumbo mortgages
The interest rate for a 30-year jumbo loan has risen by 14 basis points, reaching 7.74%. Jumbo loans typically carry higher interest rates due to their application for larger loan amounts. Nevertheless, the current rate aligns with the average 30-year fixed-rate mortgage.
5/1 adjustable-rate mortgages
The current interest rate for a 5/1 adjustable-rate mortgage (ARM) is 7.06%, representing the only loan term with a decrease. Adjustable-rate mortgages generally provide lower interest rates than fixed-rate mortgages, and presently, this difference is 63 basis points compared to a 30-year fixed-rate mortgage.
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