As of Jan. 18, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.94%.
As of Jan. 18, the rate borrowers were quoted on Zillow for a 30-year fixed mortgage was 5.94%.
Rates fall as new data backs up easing inflation, but debt fight could roil market
“Mortgage rates fell this week with indications that inflation is edging down, but a looming debt limit standoff could push rates back up,” said Orphe Divounguy, senior macroeconomist at Zillow Home Loans. “A standoff between the Biden administration and Congress over the federal government debt ceiling could rattle investors and move rates higher. Barring the Treasury’s accounting maneuvers, the U.S. is expected to reach its statutory debt limit this week. The closer we get to the brink, the higher the risk of default. This could raise borrowing costs, including mortgage rates, thus hampering an already cold housing market. That is precisely what happened last time we approached the edge in 2011 – stock prices plunged, market volatility spiked, and mortgage rates increased as America’s credit rating was downgraded for the first time. A fight over raising the debt ceiling is likely to drag into the summer, and mortgage borrowers should expect rate volatility as a result.
While the unemployment rate remains low, economic data continues to point to falling inflation. A few proof points include retail sales and producer prices falling again in December. Investors suspect a cooling economy will cause the Federal Reserve to pause, or even reverse, its program of interest rate hikes.”
Additionally, the current national average 15-year fixed mortgage rate stands at 5.43%, while the current national average 5-year ARM rate is 5.67%.
Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.
Here’s a comprehensive look at the current mortgage rates for all loan types:
Today’s Average Rates for Conventional Loans
Program | Interest Rate | APR | 1 Wk Change |
---|---|---|---|
30-Year Fixed | 6.03% | 6.14% | 0.02% |
20-Year Fixed | 5.63% | 5.76% | 0.03% |
15-Year Fixed | 4.98% | 5.13% | 0.09% |
10-Year Fixed | 5.13% | 5.47% | -0.3% |
7/1 ARM | 5.91% | 6.62% | 0.02% |
5/1 ARM | 5.63% | 6.61% | 0.01% |
3/1 ARM | 0% | 0% | 0% |
A 30-Year Fixed loan of $300,000 at 6.03% APR with a $75,000 down payment will have a monthly payment of $1,805. A 20-Year Fixed loan of $300,000 at 5.63% APR with a $75,000 down payment will have a monthly payment of $2,084. A 15-Year Fixed loan of $300,000 at 4.98% APR with a $75,000 down payment will have a monthly payment of $2,368. A 10-Year Fixed loan of $300,000 at 5.13% APR with a $75,000 down payment will have a monthly payment of $3,200. A 7/1 ARM loan of $300,000 at 5.91% APR with a $75,000 down payment will have a monthly payment of $1,782. A 5/1 ARM loan of $300,000 at 5.63% APR with a $75,000 down payment will have a monthly payment of $1,728. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Today’s Average Rates for Government Loans
Program | Interest Rate | APR | 1 Wk Change |
---|---|---|---|
30-Year Fixed FHA | 5.42% | 6.19% | -0.03% |
30-Year Fixed VA | 5.55% | 5.96% | -0.08% |
15-Year Fixed FHA | 4.82% | 5.62% | 0.12% |
15-Year Fixed VA | 5.25% | 5.92% | 0.19% |
5/1 ARM FHA | 5.25% | 7.05% | -0% |
5/1 ARM VA | 5.47% | 6.58% | -0.17% |
A 30-Year Fixed FHA loan of $300,000 at 5.42% APR with a $75,000 down payment will have a monthly payment of $1,688. A 30-Year Fixed VA loan of $300,000 at 5.55% APR with a $75,000 down payment will have a monthly payment of $1,713. A 15-Year Fixed FHA loan of $300,000 at 4.82% APR with a $75,000 down payment will have a monthly payment of $2,344. A 15-Year Fixed VA loan of $300,000 at 5.25% APR with a $75,000 down payment will have a monthly payment of $2,410. A 5/1 ARM FHA loan of $300,000 at 5.25% APR with a $75,000 down payment will have a monthly payment of $1,656. A 5/1 ARM VA loan of $300,000 at 5.47% APR with a $75,000 down payment will have a monthly payment of $1,697. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Today’s Average Rates for Jumbo Loans
Program | Interest Rate | APR | 1 Wk Change |
---|---|---|---|
30-Year Fixed Jumbo | 6.13% | 6.21% | -0.03% |
20-Year Fixed Jumbo | 6.04% | 6.16% | 0.14% |
15-Year Fixed Jumbo | 5.51% | 5.66% | -0.07% |
10-Year Fixed Jumbo | 5.71% | 5.86% | -0.07% |
7/1 ARM Jumbo | 5.62% | 6.49% | 0.01% |
5/1 ARM Jumbo | 5.65% | 6.69% | 0.01% |
3/1 ARM Jumbo | 5.75% | 6.82% | -0.13% |
A 30-Year Fixed Jumbo loan of $726,201 at 6.13% APR with a $181,550 down payment will have a monthly payment of $4,416. A 20-Year Fixed Jumbo loan of $726,201 at 6.04% APR with a $181,550 down payment will have a monthly payment of $5,220. A 15-Year Fixed Jumbo loan of $726,201 at 5.51% APR with a $181,550 down payment will have a monthly payment of $5,938. A 10-Year Fixed Jumbo loan of $726,201 at 5.71% APR with a $181,550 down payment will have a monthly payment of $7,956. A 7/1 ARM Jumbo loan of $726,201 at 5.62% APR with a $181,550 down payment will have a monthly payment of $4,176. A 5/1 ARM Jumbo loan of $726,201 at 5.65% APR with a $181,550 down payment will have a monthly payment of $4,191. A 3/1 ARM Jumbo loan of $726,201 at 5.75% APR with a $181,550 down payment will have a monthly payment of $4,237. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.
Source: zillow.com