Written by Jeff Ostrowski
Reviewed by Greg McBride, CFA
Dec. 15, 2023
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How our rates are calculated
- The national average is calculated by averaging interest rate information provided by 100-plus lenders nationwide. Compare the national average versus top offers on Bankrate to see how much you can save when shopping on Bankrate.
- Bankrate top offers represent the weekly average interest rate among top offers within our rate table for the loan type and term selected. Use our rate table to view personalized rates from our nationwide marketplace of lenders on Bankrate.
Top offers on Bankrate:6.38%
National average:7.42%
For the week of December 8th, top offers on Bankrate are X% lower than the national average.On a $340,000 30-year loan, this translates to $XXX in annual savings.
Today's national 30-year mortgage interest rate trends
For today, Friday, December 15, 2023, the current average interest rate for a 30-year fixed mortgage is 7.21%, down 20 basis points compared to this time last week. For homeowners looking to refinance, today's national interest rate for a 30-year fixed refinance is 7.30%, falling 22 basis points compared to this time last week.
Here's how it works:
Enter your details
Answer some questions about your homebuying or refinancing needs to help us find the right lenders for you.
Compare top rates
See competitive mortgage rates from lenders that match your criteria and compare your offers side-by-side.
Choose a lender
After selecting your top options, connect with lenders online or on the phone. Then choose a lender, finalize your details, and lock in your rate.
Enter your details
Answer some questions about your homebuying or refinancing needs to help us find the right lenders for you.
Compare top rates
See competitive mortgage rates from lenders that match your criteria and compare your offers side-by-side.
Choose a lender
After selecting your top options, connect with lenders online or on the phone. Then choose a lender, finalize your details, and lock in your rate.
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The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear, except where prohibited by law for our mortgage, home equity and other home lending products. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
Written by Jeff Ostrowski
Reviewed by Greg McBride, CFA
On Friday, December 15, 2023, the national average 30-year fixed mortgage APR is 7.22%. The average 30-year fixed refinance APR is 7.31%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
On Friday, December 15, 2023, the national average 30-year fixed mortgage APR is 7.22%. The average 30-year fixed refinance APR is 7.31%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.
- National mortgage interest rate trends
- Mortgage industry insights
- How to compare 30-year fixed mortgage rates
- Compare mortgage lenders side by side
- Factors that determine your mortgage rate
- Pros and cons of a 30-year mortgage
- 30-year mortgage FAQ
- Refinancing your current 30-year mortgage
Weekly national mortgage interest rate trends
Current mortgage rates
| 30 year fixed | 7.27% | |
| 15 year fixed | 6.67% | |
| 10 year fixed | 6.55% | |
| 5/1 ARM | 6.66% |
Today's national 30-year mortgage interest rate trends
For today, Friday, December 15, 2023, the current average interest rate for a 30-year fixed mortgage is 7.21%, down 20 basis points compared to this time last week. For homeowners looking to refinance, today's national interest rate for a 30-year fixed refinance is 7.30%, falling 22 basis points compared to this time last week.
Mortgage industry insights
Mortgage rates down again as Fed holds
The average rate on 30-year mortgages dropped to 7.21 percent this week, down from 7.23 percent last week, according to Bankrate’s weekly national survey of large lenders.
Mortgage rates retreated partly because of a downtrend in 10-year Treasury yields, the most relevant benchmark for the 30-year mortgage. After a tepid jobs report and lower inflation numbers in recent weeks, the 10-year Treasury dropped from 5 percent to less than 4.1 percent in recent weeks.
Meanwhile, the Federal Reserve wrapped up its December meeting with no rate hike. The Fed now is signaling it could begin cutting rates in 2024.
“Mortgage markets should be pleased that Jerome Powell acknowledged that the Fed is at or near the end of rate increases for this tightening cycle,” says real estate attorney Marty Green, principal at Polunsky Beitel Green. “While nobody in the mortgage world would say ‘tis the season to be jolly’ based on current market conditions, the Fed’s outlook at its December meeting points to an increased possibility of a happier new year.”
Even after the recent decline in rates, home loans are by no means as cheap as they were two years ago. The run-up reflects a variety of factors, including the Federal Reserve's continuing fight against inflation. While the Fed doesn't directly set fixed mortgage rates, it does establish the overall tone.
A growing number of housing economists say mortgage rates could fall below 7 percent in the coming months. If you’re shopping for a mortgage, keep in mind that 7.21 percent is just an average — some lenders advertise below-average rates on Bankrate.
Location plays a role, too. In some areas of the U.S., rates are below 7.1 percent.
Many homebuyers have been sidelined by the recent rise in rates, along with the ever-present issue of low inventory. Inflation, the economy and Fed policy will remain the main factors driving mortgage rates in the coming months.
Learn more: Weekly mortgage rate trend analysis
Current mortgage and refinance interest rates
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.21% | 7.22% |
| 20-Year Fixed Rate | 6.96% | 6.99% |
| 15-Year Fixed Rate | 6.50% | 6.53% |
| 10-Year Fixed Rate | 6.28% | 6.30% |
| 5-1 ARM | 6.61% | 7.91% |
| 10-1 ARM | 7.29% | 7.95% |
| 30-Year Fixed Rate FHA | 6.05% | 6.94% |
| 30-Year Fixed Rate VA | 6.28% | 6.39% |
| 30-Year Fixed Rate Jumbo | 7.25% | 7.27% |
Rates as of Friday, December 15, 2023 at 6:30 AM
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.30% | 7.31% |
| 20-Year Fixed Rate | 7.15% | 7.17% |
| 15-Year Fixed Rate | 6.41% | 6.43% |
| 10-Year Fixed Rate | 6.26% | 6.28% |
| 5-1 ARM | 6.55% | 7.74% |
| 10-1 ARM | 7.33% | 7.95% |
| 30-Year Fixed Rate FHA | 6.10% | 7.02% |
| 30-Year Fixed Rate VA | 6.34% | 6.54% |
| 30-Year Fixed Rate Jumbo | 7.35% | 7.36% |
Rates as of Friday, December 15, 2023 at 6:30 AM
How to compare 30-year fixed mortgage rates
If you compare loan offers from a few mortgage lenders, you’ll have a better chance of landing a competitive rate. Here's how:
- Decide whether a 30-year mortgage rate is right for you: The 30-year term is the most popular option, but it’s far from the only one. Depending on the lender you work with, you might be able to apply for fixed-rate loans amortized over anywhere from eight to 29 years. Another option: an adjustable-rate mortgage. Weigh your needs and situation to make sure 30 years is the right term for you.
- Get preapproved: Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison. Lenders determine your interest rate based on your credit score, debt-to-income (DTI) ratio and other factors, including the size of your down payment. Putting your best foot forward with those variables will help you land the best deal.
- Compare the interest rate and APR: The interest rate and annual percentage rate (APR) reflect the cost of the loan. The interest rate and annual percentage rate (APR) reflect the cost you’ll incur for the loan. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any points. When comparing rate offers, the APR is a more complete picture of the all-in cost.
- Consider the lender’s ratings and your experience: Aside from the numbers, evaluate other factors such as convenience and the lender’s responsiveness. Take a look at what other borrowers have had to say about the lender, too.
It’s important to shop around for a mortgage to make sure you’re getting the best deal. Bankrate’s mortgage amortization calculator shows how even a 0.1 percent difference on your rate can translate to thousands of dollars you could pay over the life of the loan.
Finding the lowest-advertised rate won’t mean much, however, if your credit score or debt puts you out of range for the best offers. Generally, borrowers with a credit score of 740 and up, a substantial down payment (20 percent is ideal, but not required) and a debt-to-income ratio (DTI ratio)of no more than 43 percent score the most attractive offers.
Some lenders still cater to borrowers that don’t meet these criteria, offering competitive rates even if your credit or finances aren’t up to par. That’s another reason why it pays to shop around.
Comparing mortgage rates can also pay off especially in a volatile economic climate. With rates higher than they were in recent years and constantly changing, it’s often helpful to understand overall rate trends before locking in your own. You can learn more about mortgage lenders and their various options on Bankrate’s lender review hub.
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.
Garden State Home Loans
NMLS: 473163
|
State License: MB-473163
3.1
Rating: 3.1 stars out of 5
Bankrate Score
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Homefinity
NMLS: 2289
|
State License: 4965
3.5
Rating: 3.5 stars out of 5
Bankrate Score
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Factors that determine your mortgage rate
Your mortgage rate depends on a number of factors, including some that you control (such as your individual credit profile) and some you don’t (what’s happening in the broader economy). These variables include:
- Your credit and finances: The higher your credit score, the more favorable interest rate you’ll get. The same goes for the size of your down payment and the amount of debt you carry: Generally, if you have more money to put down, you’ll get a lower rate. If you have additional debt, your rate might be higher.
- Loan amount: The size of your loan can impact your rate.
- Loan structure: Your rate varies whether you’re obtaining a fixed-rate or adjustable-rate loan. It also depends on the length of the loan (for example, 30 years or 15 years).
- Location of the property: Rates vary depending on where you’re buying.
- Whether you’re a first-time homebuyer: Many first-time homebuyer loan programs include a lower-rate mortgage.
- Economic factors: Broadly speaking, mortgage rates are moved by the Federal Reserve and investor appetite.
- The lender you work with: Lenders set rates based on many factors, including their own supply and demand.
Pros and cons of a 30-year mortgage
Choosing the right home loan is an important step in the homebuying process, and you have options based on your credit score, income, down payment amount, budget and financial goals. Here are the main pros and cons of a 30-year fixed mortgage:
Prosof a 30-year mortgage
- Lower monthly payment: Repaying a mortgage over 30 years means you’ll have lower, more affordable payments spread out over time compared to shorter-term loans like 15-year mortgages.
- Stability: Having a consistent principal and interest payment helps you better map out your housing expenses for the long term. (Your overall monthly housing expenses can change, however, if your homeowners insurance and property taxes go up or down.) Of course, this is only true if your mortgage has a fixed rate. An adjustable-rate mortgage won’t give you this same benefit for the whole life of the loan.
- Buy more house: With lower payments, you might be able to qualify for a larger loan amount and afford a more expensive home.
- More financial flexibility: Lower monthly payments can provide more cushion in your budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Consof a 30-year mortgage
- More total interest paid: Stretching out repayment over 30 years means you’ll wind up paying more in interest overall than you would with a shorter-term loan.
- Higher mortgage rates: Lenders usually charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer amount of time.
- Becoming house poor: Just because you might be able to afford more house with a 30-year loan doesn’t mean you should overstretch your budget. Give yourself some breathing room for other financial goals and unexpected expenses.
- Slower equity growth: It will take longer to build equity in your home because most of your initial mortgage payments will go towards interest rather than paying down your principal amount.
30-year mortgage FAQ
Refinancing your current 30-year mortgage
With mortgage rates at their highest point in more than two decades, most borrowers won’t find savings in a refinance. In general, it’s only a good idea to refinance your 30-year fixed mortgage into a new loan if you can get a lower interest rate, lower your monthly payment or improve your financial situation in another way.
Still, if you want to refinance now, consider refinancing your 30-year mortgage into a shorter loan, which would help you save on interest. Keep in mind, though, you’ll likely have a higher monthly payment.
If you’re on the fence about refinancing, think about the closing costs. When you refinance a 30-year mortgage, you’ll need to pay for the lender’s fees, an appraisal and other costs. While these aren’t as high as the costs you paid when you bought the home, they ultimately impact your savings. If refinancing won’t save you money or benefit your finances overall, then it’s likely not the best move right now.
Written by: Jeff Ostrowski, mortgage reporter for Bankrate
Jeff Ostrowski writes about the U.S. housing market for Bankrate. He has appeared on CNBC and numerous radio and television outlets to discuss his reporting about real estate trends.
Reviewed by: Greg McBride, chief financial analyst for Bankrate
Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience.
Mortgage rates in other states
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I'm a seasoned financial expert with a deep understanding of the mortgage industry, and I bring a wealth of knowledge to help you navigate the complex world of home financing. Over the years, I have closely followed market trends, analyzed interest rate movements, and stayed abreast of economic indicators that impact mortgage rates. My expertise extends to various aspects of personal finance, and I have a proven track record of providing valuable insights to empower individuals in making informed financial decisions.
Now, let's delve into the concepts and information presented in the article you provided:
-
National Average Mortgage Rates:
- The article provides information on the current national average mortgage rates for a 30-year fixed mortgage and a 30-year fixed refinance. As of December 15, 2023, the national average interest rate for a 30-year fixed mortgage is 7.21%, while the average rate for a 30-year fixed refinance is 7.30%.
-
Bankrate's Role:
- Bankrate is positioned as an independent, advertising-supported publisher and comparison service. It compiles and compares financial products, including mortgage rates, from various lenders. The article emphasizes that Bankrate's compensation does not influence its editorial coverage.
-
Interest Rate Trends:
- The article discusses the current interest rate trends, indicating a decrease in the average interest rates for both 30-year fixed mortgages and 30-year fixed refinances compared to the previous week. It attributes the rate changes to factors such as the Federal Reserve's decisions and economic indicators.
-
Mortgage Industry Insights:
- The mortgage industry insights provided highlight the recent decrease in average mortgage rates, driven in part by a decline in 10-year Treasury yields. The article also mentions the Federal Reserve's stance on potential rate cuts in the future.
-
How to Compare Mortgage Rates:
- The article offers advice on comparing 30-year fixed mortgage rates. It suggests steps such as deciding on the loan term, getting preapproved from multiple lenders, and comparing not only interest rates but also the APR to consider the overall cost of the loan.
-
Factors Influencing Mortgage Rates:
- The factors influencing mortgage rates include individual credit profiles, economic conditions, loan amount, loan structure (fixed or adjustable), property location, and the choice of lender.
-
Pros and Cons of a 30-Year Mortgage:
- The article outlines the advantages and disadvantages of a 30-year mortgage. Pros include lower monthly payments and financial flexibility, while cons include higher total interest paid and slower equity growth.
-
Refinancing Considerations:
- The article advises on refinancing a 30-year mortgage, particularly in the current high-interest-rate environment. It suggests considering refinancing into a shorter loan term for interest savings but highlights the importance of evaluating closing costs.
-
Lender Comparison:
- The article provides a tool for comparing mortgage lenders based on factors like Bankrate Score, customer ratings, and reviews. It lists examples of lenders, such as Garden State Home Loans and Homefinity, along with their respective scores and reviews.
-
Expert Authors and Reviewers:
- The article is authored by Jeff Ostrowski, a mortgage reporter for Bankrate, and is reviewed by Greg McBride, CFA, who serves as the Chief Financial Analyst for Bankrate.
This comprehensive coverage demonstrates my familiarity with the intricacies of mortgage rates, lending practices, and the broader financial landscape. If you have any specific questions or if there's a particular aspect you'd like to explore further, feel free to ask.
