The average rate offered to homebuyers using a conventional 30-year fixed mortgage rose to 4.01% from 3.94% the previous business day, reaching a new high since 2020. (Our daily mortgage rate data only goes back to April 2021, but our data on yearly highs and lows dates back to 2020, so we know it was higher in March 2020, when it hit 4.71%.) The average for a 15-year fixed mortgage rose to 3.13% from 3.07% the previous business day, also its highest point since 2020. Fixed mortgage rates tend to track the direction of 10-year Treasury yields, which usually rise with heightened inflation fears (and fall when those fears subside.) Yields that surged in January are on the rise again as central banks in other parts of the world signal they will move aggressively to clamp down on inflation. Last month, Federal Reserve Chairman Jerome Powell reinforced Fed’s commitment to using interest rate increases to quash what he said could be “prolonged” inflation. Even at these highs, mortgages are pretty affordable by historic standards. According to a Freddie Mac measure that dates back farther than our data, 15-year and 30-year mortgages average less than a percentage point higher than the record lows reached last year. Three years ago, the average 30-year was almost 5%, and at the start of the 1990s, it was around 10%. During the pandemic, these relatively low rates have bolstered buying power, allowing house hunters to buy more expensive homes with the same monthly budget and helping to fuel a fiercely competitive residential real estate boom.

30-Year Mortgage Rates Climb

A 30-year fixed mortgage is by far the most common type of mortgage because it offers a consistent and relatively low monthly payment. (Shorter-term fixed mortgages have higher payments because the borrowed money is paid back more quickly.)  Besides conventional 30-year mortgages, some are backed by the Federal Housing Authority or the Department of Veterans Affairs. FHA loans offer borrowers with lower credit scores or a smaller down payment a better deal than they might otherwise get; VA loans let current or past members of the military and their families skip a down payment.

30-year fixed: The average rate rose to 4.01%, up from 3.94% the previous business day. A week ago, it was 3.96%. For every $100,000 borrowed, monthly payments would cost about $477.99, or $2.88 more than a week ago.30-year fixed (FHA): The average rate rose to 3.83% from 3.78% the previous business day. A week ago, it was 3.85%. For every $100,000 borrowed, monthly payments would cost about $467.67, or $1.14 less than a week ago.30-year fixed (VA): The average rate rose to 4.11% from 4.07% the previous business day. A week ago, it was 3.9%. For every $100,000 borrowed, monthly payments will cost about $483.78, or $12.11 more than a week ago.

15-Year Mortgage Rate Increases 

The major advantage of a 15-year fixed mortgage is that it offers a lower interest rate than the 30-year and you’re paying off your loan more quickly, so your total borrowing costs are far lower. But for the same reason—that the loan is paid back over a shorter time frame—the monthly payments will be higher.

15-year fixed: The average rate rose to 3.13% from 3.07% the previous business day. A week ago, it was also 3.07%. For every $100,000 borrowed, monthly payments would cost about $696.85, or $2.90 more than a week ago.

Jumbo Mortgage Rates Rise or Hold Steady

Jumbo loans, which allow you to borrow bigger amounts for more expensive properties, tend to have slightly higher interest rates than loans for more standard amounts. Jumbo means over the limit that Fannie Mae and Freddie Mac are willing to buy from lenders, and that limit went up in 2022. For a single-family home, it’s now $647,200 (except in Hawaii, Alaska, and a few federally designated high-cost markets, where the limit is $970,800.)

Jumbo 30-year fixed: The average rate rose to 3.76% from 3.68% the previous business day. A week ago, it was 3.71%. For every $100,000 borrowed, monthly payments would cost about $463.68, or $2.83 more than a week ago.Jumbo 15-year fixed: The average rate was 3.4%, the same as the previous business day. A week ago, it was also 3.4%. For every $100,000 borrowed, monthly payments would cost about $709.98, unchanged from a week ago.

Refinance Rates Increase

Refinancing an existing mortgage tends to be slightly more expensive than getting a new one, especially in a low-rate environment. 

30-year fixed: The average rate to refinance rose to 4.08% from 3.98% the previous business day. A week ago, it was 4.03%. For every $100,000 borrowed, monthly payments would cost about $482.04, or $2.89 more than a week ago.15-year fixed: The average rate to refinance rose to 3.19% from 3.09% the previous business day. A week ago, it was 3.15%. For every $100,000 borrowed, monthly payments at that rate will cost about $699.76, or $1.94 more than a week ago.

Methodology

Our rates for “today” reflect national averages provided by more than 200 of the country’s top lenders one business day ago, and the “previous” is the rate provided the business day before that. Similarly, the week earlier references compare the data from five business days earlier (so bank holidays are excluded.) The rates assume a loan-to-value ratio of 80% and a borrower with a FICO credit score of 700 to 759—within the “good” to “very good” range. They’re representative of the rates customers would see in actual quotes from lenders, based on their qualifications, and may vary from advertised teaser rates. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.