Mortgage rates dropped this week in the wake of several bank failures, reversing course after reaching their highest levels in months in February. “Turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short term,” said Sam Khater, Freddie Mac’s chief economist.
With rates for most key terms now under 6%, borrowers may want to seize the opportunity and lock in a rate today to take advantage of the favorable rates before they fluctuate again. It’s particularly crucial for those intending to buy a home ahead of the spring buying season to act now.
today’s mortgage rates: march 17, 2023
Interest rates decreased across all terms. Today’s average mortgage rates are listed below.
- 30 Yr. Fixed: 6.44%
- 15 Yr. Fixed: 5.85%
- 30 Yr. Jumbo: 5.95%
- 5/1 ARM: 5.87%
- 30 Yr. FHA: 5.95%
- 30 Yr. VA: 6.00%
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 31 basis points from the previous week, standing at 6.44%. The 30-year fixed-rate mortgage is the most popular and most common mortgage term in the country. Despite carrying a higher interest rate than the 15-year fixed-rate mortgage, the 30-year fixed-rate mortgage offers a more affordable monthly payment.
15-year fixed-rate mortgages
The average interest rate for a 15-year fixed-rate mortgage is currently 5.85%, a decrease of 35 basis points from the previous week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage has a shorter repayment term, leading to higher monthly payments but lower overall interest payments.
30-year jumbo mortgages
The interest rate for a 30-year fixed jumbo loan has fallen to 5.95%, representing a 30 basis point decrease from the previous week. Generally, jumbo loans tend to 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 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 5.95%, indicating a decrease of 30 basis points from the previous week. Generally, adjustable-rate mortgages offer lower interest rates than fixed-rate mortgages. However, currently, the average interest rate for a 5/1 ARM is 49 basis points lower 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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