Mortgage interest rates edged higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans rose.
Mortgage rates have been on a wild ride as of late, with the 30-year fixed now past 6 percent as the Federal Reserve cracks down on inflation. The rate chart could continue to look choppy — the Fed’s rate-raising stance against inflation also could lead to a recession, and that could cause mortgage rates to retreat.
The central bank raised rates again at its September meeting. The one-two punch of consecutive rate increases of three-quarters of a point are likely to cool the economy. “The cumulative effect of this sharp rise in rates has cooled the housing market and caused the economy to start slowing, but hasn’t done much to lower inflation,” says Greg McBride, CFA, Bankrate chief financial analyst.
Rates as of October 24, 2022.
The rates listed here are marketplace averages based on the assumptions indicated here. Actual rates displayed within the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Monday, October 24th, 2022 at 7:30 a.m.
You can save thousands of dollars over the life of your mortgage by getting multiple offers.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, Bankrate senior economic analyst. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
- Mortgage interest rates
- Today’s 30-year mortgage rate rises, +0.04%
- How do I view personalized 30-year mortgage rates?
- 15-year fixed mortgage rate increases,+0.03%
- 5/1 ARM moves higher, +0.09%
- Jumbo mortgage rate moves up, +0.04%
- Rate review: How mortgage interest rates have changed this week
- Mortgage refinance rates
- 30-year mortgage refinance moves higher, +0.05%
- Where are mortgage rates headed?
- Comparing mortgage options
- Are mortgage rates going up?
- Learn more:
- Featured lenders for today, October 24, 2022
Mortgage interest rates
Today’s 30-year mortgage rate rises, +0.04%
The average rate for the benchmark 30-year fixed mortgage is 7.24 percent, up 4 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.59 percent.
At the current average rate, you’ll pay a combined $678.79 per month in principal and interest for every $100k you borrow.
How do I view personalized 30-year mortgage rates?
Use the loan widgets on this page or head to our primary rates page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.
15-year fixed mortgage rate increases,+0.03%
The average rate for the benchmark 15-year fixed mortgage is 6.44 percent, up 3 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $623 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM moves higher, +0.09%
The average rate on a 5/1 adjustable rate mortgage is 5.48 percent, ticking up 9 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 5.48 percent would cost about $562 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage rate moves up, +0.04%
The average rate for a 30-year jumbo mortgage is 7.24 percent, an increase of 4 basis points from a week ago. This time a month ago, the average rate was lower, at 6.58 percent.
At the current average rate, you’ll pay principal and interest of $678.79 for every $100,000 you borrow. Compared to last week, that’s $8.11 higher.
Rate review: How mortgage interest rates have changed this week
- 30-year fixed mortgage rate: 7.24%, up from 7.20% last week, +0.04
- 15-year fixed mortgage rate: 6.44%, up from 6.41% last week, +0.03
- 5/1 ARM mortgage rate: 5.48%, up from 5.39% last week, +0.09
- Jumbo mortgage rate: 7.24%, up from 7.20% last week, +0.04
Mortgage refinance rates
30-year mortgage refinance moves higher, +0.05%
The average 30-year fixed-refinance rate is 7.24 percent, up 5 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 6.61 percent.
At the current average rate, you’ll pay $678.79 per month in principal and interest for every $100,000 you borrow. That’s $8.11 higher compared with last week.
Where are mortgage rates headed?
Mortgage rates plunged early in the pandemic and scraped record lows — below 3 percent — at the start of 2021. The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 6 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing mortgage options
The 30-year fixed mortgage is the most popular loan for homeowners. This type of loan has a number of advantages, including:
- Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
- Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
- Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
- Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
- Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
- Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
- Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
- Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
- Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
Are mortgage rates going up?
Throughout 2021, mortgage rates are expected to begin rising again. The National Association of Realtors expects rates to average 3.1% and the Mortgage Bankers Association (MBA) says mortgage rates will average 3.3% in 2021. These rate estimates are both up from the 3.0% mortgage rate average in 2020 but lower than 2019’s average rates. Many experts say it could be years before mortgage rates return to their pre-pandemic levels.
- National Association of Real Estate Editors
- Freddie Mac Federal Home Loan Mortgage Corporation