Updated 11:19 a.m. ET May 16, 2023
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Today’s 30-year fixed mortgage rate is 7.01% while a 15-year fixed-rate mortgage is 6.13%. Rates on 30-year jumbo mortgages are 6.67%.
Current mortgage rates for May 16, 2023
*Data accurate as of May 15, 2023, the latest data available.
30-year fixed mortgage rates
Mortgage rates today for a 30-year fixed-rate loan sit at 7.01%, falling fractionally from 7.02% last week, according to data from Curinos. Last month, rates were at 5.17%, putting today’s rates higher and up from 4.52% last year.
The 30-year fixed-rate average today is 1.12 percentage points below the 52-week high of 8.13% and 1.13 percentage points higher than the 52-week low of 5.88%.
At the current 30-year fixed rate, you’ll pay about $666 each month for every $100,000 you borrow — down from around $667 last week.
15-year fixed mortgage rates
Today’s 15-year fixed mortgage rate is 6.13% which is a touch lower than last week’s 6.18%. But this is an increase from last month’s 5.86%. And last year around the same time, 15-year fixed rates were 5.26%, which makes today’s rate nearly a full percentage point higher than it was a year ago.
At the current 15-year fixed rate, you’ll pay about $851 each month for every $100,000 you borrow, down from about $854 last week.
30-year jumbo mortgage rates
Today’s 30-year jumbo mortgage rate is 6.67% which is slightly lower than last week’s 6.68%. This is an increase from last month’s 5.66%. Last year around the same time, 30-year jumbo rates were 4.81%, which makes today’s rate much higher than it was a year ago.
At the current 30-year jumbo rate, you’ll pay around $643 each month for every $100,000 you borrow, down from about $644 last week.
Methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For conventional mortgages, the calculations are based on an owner-occupied, one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $750,000. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher and a 60-day lock period.
Frequently asked questions (FAQs)
Mortgage rates are determined by a variety of factors, including the overall economy, inflation and the actions of the Federal Reserve. Mortgage lenders then set their loan rates based on these economic elements.
The rate you’re offered on a mortgage will also depend not only on the lender but also on your credit score, income, debt-to-income (DTI) ratio and other parts of your financial profile.
There are several strategies that could help you qualify for the best mortgage rate, such as:
- Checking your credit: When you apply for a mortgage, the lender will review your credit to determine your creditworthiness as well as your interest rate. In general, the higher your credit score, the lower your rate will be. So before you apply, it’s a good idea to check your credit to see where you stand. If you find any errors in your credit report, dispute them with the appropriate credit bureau to potentially boost your score.
- Comparing lenders: Taking the time to shop around and compare your options from as many lenders as possible can help you find the best deal. In addition to rates, make sure to also consider each lender’s terms, fees and eligibility requirements.
- Improving your credit score: If you have less-than-perfect credit and you can wait to apply for a mortgage, it could be worth working to improve your credit beforehand to qualify for better rates in the future. Some possible ways to boost your credit include paying all of your bills on time and aiming to keep your credit utilization (the amount of credit you’ve used compared to your credit limits) on credit cards and lines of credit at 30% or less.
- Reducing debt: Paying down debt could help lower your DTI ratio, which is how much you owe in monthly debt payments compared to your income. Having a lower DTI ratio can make you look like less of a risk in the eyes of a lender, which can result in a lower rate.
- Choosing a shorter repayment term: Lenders typically offer lower rates to borrowers who opt for shorter terms. For example, you’ll likely get a lower rate on a 15-year mortgage compared to a 30-year loan.
On May 3, 2023, the Federal Reserve announced a third interest rate hike for the year—this time by 25 basis points. While the Fed doesn’t set mortgage rates, this increase in the federal funds rate could lead individual lenders to raising their home loan rates, too.
If you already have a mortgage, how this could affect your monthly payment will depend on if your loan has a fixed or adjustable rate. A fixed rate stays the same over the life of the loan, meaning your payments will never change. An adjustable rate, however, can fluctuate according to market conditions—which means you could see a rise in your monthly payments.
For example, if you take out an ARM for $250,000 with an interest rate of 5.5%, your initial monthly payments would be $1,719. But after the initial period is over, and the ARM switches to a variable rate, your payments could increase if the rate rises. If the rate rose just 25 basis points (5.75%), for instance, your payments would increase to $1,750.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
