Mortgage Rates

Current Mortgage Rates for October 2023. It is approaching 8%, putting a hardship on potential buyers who cannot afford a home in today’s market.

According to CNET sister site Bankrate, the average rate for a 30-year fixed mortgage was 7.99% last week. According to Mortgage News Daily, the average is already above 8% as of October 18, 2023.

Mortgage rates vary greatly amongst lenders. It is important to search for the best interest rate and evaluate various loan offers to locate one that meets your financial requirements.

What to know first

This time last year, mortgage rates were about 5%. They began to rise in March 2022, when the Federal Reserve began an aggressive streak of rate rises to combat inflation. Mortgage rates are now expected to exceed 8% on average.

Though inflation has declined from last year’s record highs, it remains significantly over the Federal Reserve’s annual target rate of 2%. The central bank has left the door open to more rate rises depending on how the economy performs. However, the Fed did not raise rates in September, and many analysts predict the same at its forthcoming policy meeting on November 1.

Even if the Fed does not raise rates further in 2023, mortgage rates are expected to remain high until the central bank begins to lower its benchmark rate.

“The million dollar question is how long the Fed will keep rates elevated to ensure it wins the battle against inflation,” said Marty Green of Polunsky Beitel Green, a mortgage law company. “I expect rates will remain elevated until at least mid-2024.”

If the Fed’s attempts to reduce inflation are finally effective, mortgage rates may fall. According to Fannie Mae, the average 30-year fixed mortgage rate will end the year at roughly 7.3% but will not return to the low-6% level until next year.

What is a mortgage rate?

Your mortgage rate is the percentage of interest a lender charges for providing the loan required to purchase a home. The rate you are given is determined by several variables. Some are unique to you and your financial status, while others are impacted by macroeconomic factors such as inflation, the Federal Reserve’s monetary policy, and the general demand for loans.

What factors determine my mortgage rate?

While the overall economy has an impact on mortgage rates, certain crucial elements under your control influence your rate:

While the overall economy influences mortgage rates, certain critical elements under your control can have an impact:

Your credit rating: Borrowers with good recognition scores of 740 and above are offered the lowest attainable rates by lenders. Lenders charge higher interest rates as a consequence of lower credit scores, which are perceived as riskier.

The loan’s size: Your loan’s size may impact the interest rate you qualify for.

The loan period is: A 30-year fixed-rate loan, which distributes your payments over three decades, is the most prevalent kind of mortgage. Shorter loans, such as 15-year mortgages, offer lower interest rates but higher monthly payments.

The kind of loan: The mortgage you choose impacts your interest rate. Some loans feature a fixed interest rate throughout the loan. Others have adjustable rates, which are lower at the beginning of the loan but may result in higher payments later.

Current mortgage and refinance rates

What are today’s mortgage rates?

As of October 18, the average 30-year fixed mortgage rate is 7.99%, with an annual percentage rate of 8.01%. The average 15-year fixed mortgage rate is 7.14%, with an annual percentage rate of 7.19%. According to Bankrate’s most recent survey of the nation’s major mortgage lenders, the average 5/1 adjustable-rate mortgage is 6.88% with an APR of 8.12%.

Current mortgage rates

ProductInterest rateAPR
30-year fixed-rate8.09%8.11%
30-year fixed-rate FHA7.37%8.32%
30-year fixed-rate VA7.60%7.72%
30-year fixed-rate jumbo8.09%8.11%
20-year fixed-rate7.98%8.00%
15-year fixed-rate7.20%7.25%
15-year fixed-rate jumbo7.17%7.20%
5/1 ARM7.05%8.14%
5/1 ARM jumbo7.03%8.06%
7/1 ARM7.18%8.19%
7/1 ARM jumbo7.19%8.09%
10/1 ARM7.57%8.17%
Updated on October 26, 2023.

We follow daily mortgage rate changes using data gathered by Bankrate, owned by the same parent company as CNET. The table above illustrates the average rates given by lenders nationwide.

What is ‘annual percentage rate’ and what does it mean for mortgages?

The annual percentage rate, or APR, is often higher than the interest rate on your loan and shows the real cost of your loan. It contains the interest rate and other expenditures, such as fees paid to lenders or prepaid points. So, although an offer may entice you with “interest rates as low as 6.5%,” check the APR to discover how much you’re paying.

Pros and cons of getting a mortgage


Instead of paying rent with no ownership involvement, you will grow equity in the property.

Producing on-time payments can help you improve your credit.

The mortgage interest will be deductible on your yearly tax return.


You will incur significant debt.

Due to interest costs, you’ll pay more than the list price – perhaps a lot more over the length of a 30-year loan.

To close the mortgage, you’ll need to budget for closing expenses, which may run into the tens of thousands of dollars in certain areas.

How does the APR affect principal and interest?

Most mortgage loans follow an amortization plan, which means you’ll pay the same amount each month throughout the life of the loan, but the interest earned will be the largest at the start and will taper down as the principal (the amount borrowed) lowers. Your amortization schedule will indicate how much of your monthly payment is applied to interest and how much is applied to the principal. Most borrowers want a fixed, predictable monthly payment.

Shopping for mortgage rates

Mortgage lenders often post their rates for various mortgage kinds, which may assist you in your research and narrowing down where you’ll apply for preapproval. However, the listed rate is not necessarily the rate you will get. When shopping for a new mortgage, it’s critical to examine mortgage rates, closing expenses, and any additional loan fees. Experts advise not hurrying the process and shopping around for quotations from several lenders.


What credit score do you need to get a mortgage ?

Most conventional loans require a credit score of 620 or higher. However, depending on the lender, FHA and other loan types may accept applicants with credit scores as low as 500.

How are mortgage rates determind ?

Your credit score isn’t the only element that affects your mortgage rate. Lenders may also consider your debt-to-income ratio to determine your degree of risk depending on the other bills you’re repaying, such as college loans, auto payments, and credit card debt. Furthermore, your loan-to-value ratio influences your mortgage rate.

What is a rate lock ?

A rate lock implies that your interest rate will not change between when you make an offer and when you close on the home. For example, you’ll get a lesser rate if you lock in a 6.5% rate today and your lender’s rates rise to 7.25% during the following 30 days. You’re still on a tight timeframe since a typical rate-lock term is 45 days. Inquire with lenders regarding rate lock windows and the cost of locking in your rate.

Will rates go up or down ?

Mortgage rates are constantly fluctuating, and forecasting the market is difficult. However, due to the Federal Reserve’s attempts to combat inflation, most analysts believe mortgage rates will stay high immediately. According to Fannie Mae, the average 30-year fixed mortgage rate will end the year at 7.1%.


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