Mortgage Interest Rates Today, January 23, 2024 | Borrowers Should Expect Some Volatility as we Await Fed Cuts (2024)

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Mortgage rates are up a bit compared to where they were early last week. Rates have been a little volatile this month as markets try to figure out when the Federal Reserve will start cutting the federal funds rate.

Average30-year mortgage rates are currently around 20 basis points higher than they were this time last week.

But mortgage rates are expected to go down throughout 2024, and Fannie Mae researchers even believe we could finally see rates reach 5.8% by the end of the year, according to their latest forecast. If this happens, this would mark the first time rates have dropped below 6% since September 2022, according to Freddie Mac data.

But in the near term, borrowers should expect rates to fluctuate until we get some clearer signs from the latest data and Fed officials on what the next few months will look like. We could even see rates temporarily spike up near 7% again.

If the economic data shows that inflation is continuing to come down in 2024 and the Fed remains open to cutting rates this year, mortgage rates should start to trend down.

Current Mortgage Rates

Current Refinance Rates

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Use ourfree mortgage calculatorto see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.

Click "More details" for tips on how to save money on your mortgage in the long run.

Mortgage Rates for Buying a Home

30-Year Fixed Mortgage Rates Increase (+0.20%)

The current average 30-year fixed mortgage rate is 6.38%, up 20 basis points since this time last week. This rate is also up a bit compared to a month ago, when it was 6.27%.

At 6.38%, you'll pay $624 monthly toward principal and interest for every $100,000 you borrow.

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.

20-Year Fixed Mortgage Rates Higher This Week (+0.30%)

The average 20-year fixed mortgage rate is up somewhat from last week, and is sitting at 5.99%. This time last month, the rate was 5.88%.

With a 5.99% rate on a 20-year term, your monthly payment will be $716 toward principal and interest for every $100,000 borrowed.

A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.

15-Year Fixed Mortgage Rates Rise (+0.34%)

The average 15-year mortgage rate is 5.73%, up 34 points from last week. It's also a bit higher compared to this time last month, when it was 5.56%.

With a 5.73% rate on a 15-year term, you'll pay $829 each month toward principal and interest for every $100,000 borrowed.

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.

7/1 ARM Rates Inch Up (+0.09%)

The 7/1 adjustable mortgage rate is up 9 basis points from a week ago, currently at 6.72%. But it's down a bit compared to this time last month, when it was at 6.82%.

At 6.72%, your monthly payment would be $647 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.

5/1 ARM Rates Go Up (+0.20%)

The average 5/1 ARM rate is 6.81%, an increase from last week. It's also higher than it was a month ago, when it was 6.66%.

Here's how a 6.81% rate would affect you for the first five years: You'd pay $653 per month toward principal and interest for every $100,000 you borrow.

30-year FHA Rates up From a Week Ago (+0.33%)

The average 30-year FHA interest rate is 5.96% today, which is up 33 basis points from last week. This rate was 5.65% a month ago.

At 5.96%, you would pay $597 monthly toward principal and interest for every $100,000 borrowed.

FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.

30-year VA Rates Increase (+0.32%)

The current VA mortgage rate is 5.76%, up from this time last week. This rate was 5.57% a month ago.

With a 5.76% rate, your monthly payment would be $584 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-Year Fixed Refinance Rates Tick Up (+0.22%)

The average 30-year refinance rate is 6.33%, 22 basis points higher than last week. It's also up compared to a month ago, when it was 6.23%.

Here's how a 6.33% rate would affect your monthly payments: You'd pay $621 toward principal and interest for every $100,000 borrowed.

Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.

20-Year Fixed Refinance Rates Go Up a Bit (+0.13%)

The current 20-year fixed refinance rate is 6.09%, which is just 13 basis points up compared to a week ago. This rate was 5.89% this time last month.

A 6.09% rate on a 20-year term will result in a $722 monthly payment toward principal and interest for every $100,000 you borrow.

15-Year Fixed Refinance Rates Spike (+0.40%)

The average 15-year fixed refinance rate is 5.91%, which is up 40 points compared to last week. This rate is also higher compared to this time a month ago, when it was at 5.87%.

A 5.91% rate on a 15-year term means you'll pay $839 each month toward principal and interest for every $100,000 borrowed.

Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.

7/1 ARM Refinance Rates are Up (+0.24%)

The average 7/1 ARM refinance rate is 7.54%, up from where it was last week. A month ago, it was lower at 6.61%.

Refinancing into a 7/1 ARM with a 7.54% rate means your monthly payment toward principal and interest will be $702 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.

5/1 ARM Refinance Rates are Flat (No Change)

The 5/1 ARM refinance rate is 7.21%, which is exactly where this rate was this time last week. It's also up compared to this time last month, when it was 6.50%.

A 7.21% rate will result in a monthly payment of $679 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.

30-Year FHA Refinance Rates Trend Up (+0.36%)

The 30-year FHA refinance rate is 6.12%, which down a bit compared to last week. This rate was 5.53% this time last month.

A 6.12% refinance rate would lead to a $607 monthly payment toward the principal and interest per $100,000 borrowed.

30-Year VA Refinance Rates Go Up (+0.27%)

The average 30-year VA refinance rate is 5.71%, which is higher compared to where it was was last week. This rate was 5.56% a month ago.

At 5.71%, your new monthly payment would be $581 toward principal and interest for every $100,000 you borrow.

Are Mortgage Rates Going Down?

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. We should continue to see them fall in 2024 and 2025.

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 be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.

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. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.

Current HELOC ratesare relatively low compared to other loan options, including credit cards and personal loans.