Although the Federal Reserve increased interest rates by 0.25% this week to combat inflation, there is some positive news for homebuyers. Mortgage rates have decreased for the second consecutive week due to lingering concerns about bank failures and uncertainty in the financial markets.
This development is beneficial for homebuyers as they witness a slight drop in rates and stabilization in home prices. “If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist.
today’s mortgage rates: march 17, 2023
Mortgage rates have undergone changes across various important terms this week, with most experiencing a significant decrease. Today’s average mortgage rates are listed below.
- 30 Yr. Fixed: 6.19%
- 15 Yr. Fixed: 5.68%
- 30 Yr. Jumbo: 5.70%
- 5/1 ARM: 6.30%
- 30 Yr. FHA: 5.47%
- 30 Yr. VA: 5.50%
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 decreased by 25 basis points from the previous week, standing at 6.19%. The 30-year fixed-rate mortgage is the most common and the most preferred mortgage term in the country, even though it has a higher interest rate compared to the 15-year fixed-rate mortgage. Nonetheless, the 30-year fixed-rate mortgage provides a more budget-friendly monthly payment option.
15-year fixed-rate mortgages
The average interest rate for a 15-year fixed-rate mortgage is currently 5.68%, a decrease of 17 basis points from the previous week. In contrast to the 30-year fixed mortgage, the 15-year fixed mortgage has a shorter repayment period resulting in elevated monthly payments but reduced total interest payments.
30-year jumbo mortgages
The interest rate for a 30-year fixed jumbo loan has fallen to 5.70%, representing a 25 basis point decrease from the previous week. Jumbo loans usually come with higher interest rates than conventional loans because you’re borrowing a larger amount. However, given today’s economic situation, jumbo loan rates are currently 49 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 6.30%, indicating a 43 basis point increase from the previous week. Generally, adjustable-rate mortgages offer lower interest rates than fixed-rate mortgages. However, the current average interest rate for a 5/1 ARM is 11 basis points higher than that of the average 30-year fixed-rate mortgage. An essential feature of adjustable-rate mortgages is that their interest rates can vary depending on market conditions. If you plan to sell or refinance your property before the rate adjusts, selecting an ARM might be a smart decision. However, if you don’t, you could end up with a higher interest rate if market rates rise.
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