Today’s Mortgage, Refinance Rates: April 28, 2023


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The bad news: Average 30-year mortgage rates have been increasing over the last two weeks after falling dramatically throughout March and early April, according to Freddie Mac.

The good news: Most experts believe rates will start dropping again soon, which means that borrowers should be able to find more affordability later this year.

Average 15-year mortgage rates dropped slightly, but remain elevated compared to where they were a month ago.

“The 30-year fixed-rate mortgage increased modestly for the second straight week, but with the rate of inflation decelerating rates should gently decline over the course of 2023,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”

Mortgage Rates Today

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Mortgage Refinance Rates Today

Mortgage type Average rate today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Zillow. See more
mortgage rates on Zillow

Mortgage Calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

30-Year Fixed Mortgage Rates

The current average 30-year fixed mortgage rate is 6.43%, according to Freddie Mac. This is an increase from the previous week.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates. 

15-Year Fixed Mortgage Rates

The average 15-year fixed mortgage rate is 5.71%, a slight decrease from the prior week, according to Freddie Mac data.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.

How Do Fed Rate Hikes Affect Mortgages?

The Federal Reserve has been increasing the federal funds rate to try to slow economic growth and get inflation under control. So far, inflation has slowed somewhat, but it’s still well above the Fed’s 2% target rate.

Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy. 

As inflation starts to come down, mortgage rates should, too. But the Fed has indicated that it’s watching for sustained signs of slowing inflation, and it’s not going to stop hiking rates until it sees sustained signs of slowing inflation.

When Will Mortgage Rates Go Down?

Mortgage rates increased dramatically in 2022, but they’re expected to trend down later this year.

In January 2023, the Consumer Price Index rose 5% year-over-year, a significant slowdown compared to the previous month. This is good news for mortgage borrowers and the broader economy.

As inflation comes down, mortgage rates likely will, too. But the Fed is looking for sustained signs of slowing inflation, which means it’s not likely to stop hiking rates any time soon, though officials have said they expect to start slowing the pace of hikes. This should help ease the upward pressure on mortgage rates.

Are HELOCs a Good Idea Right Now?

Many homeowners gained a lot of equity over the past few years as home prices increased at an unprecedented rate. But because rates are so high now, tapping into that equity can be expensive. 

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may still be a good option. 

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. 

Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than you would with a home equity loan or a cash-out refinance. Just keep in mind that HELOC rates are variable, so if rates start to trend up further, yours will likely increase, as well.

 



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