Today's Mortgage Rates - 01/28/2023
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With investors awaiting direction from the Fed, mortgage rates were mostly stable this week.
Freddie Mac reported today that the average offered interest rate for a conforming 30-year fixed-rate mortgage declined by just two basis points (0.02%), edging down to 6.13%. The passage of the holiday season and lower mortgage rates has seen a bit of a pickup in both home purchases and mortgage refinancing activity.
For the third week in a row, the average offered rate for a conforming fifteen-year FRM declined by a greater amount than its longer-term counterpart, falling by eleven basis points (0.11%), putting the most popular shorter-term mortgage at 5.17%.
Freddie Mac's legacy rate survey showed the average initial fixed rate for a hybrid 5/1 ARM at 5.47%, a six-basis-point (0.06%) increase from last week. A 5/1 ARM might offer a reasonable alternative to some homebuyers looking for a less-costly mortgage option right now, although the interest rate break has shrunk a little over the past few weeks.
Amid signs that inflation is heading in the right direction, the Fed will meet next week to make changes to monetary policy. Markets currently expect a 0.25% increase in the federal funds rate. While that may the outcome, it's still true that labor markets remains considerably tighter than the central bank would like to see. As well, the economy continues to grow at a clip that makes it more difficult for inflation to diminish quickly, as Gross Domestic Product (GDP) came in at a 2.9% annualized rate for the fourth quarter of 2022.
The open question is how patient the Fed will be once it lifts rates again, and the meeting-closing statement and Chair Powell's press conference may provide clues as to what comes next.
Like other long-term interest rates, mortgage rates are in a gentle ebb and flow at the moment, and don't appear likely to move much in the coming few days.
Each week in HSH's MarketTrends newsletter, we track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers. Read the most recent edition of MarketTrends or subscribe for email delivery.
Current mortgage rates
| Week | 30-year-Fixed | 15-year-Fixed | 5-year-ARM* |
|---|---|---|---|
| 01/26 | 6.130% | 5.170% | |
| 01/19 | 6.150% | 5.280% | |
| 01/12 | 6.330% | 5.520% | |
| 01/05 | 6.480% | 5.730% | |
| 12/29 | 6.420% | 5.680% | |
| 12/22 | 6.270% | 5.690% | |
| 12/15 | 6.310% | 5.540% | |
| 12/08 | 6.330% | 5.670% | |
| 12/01 | 6.490% | 5.760% | |
| 11/23 | 6.580% | 5.900% | |
| 11/17 | 6.610% | 5.980% | |
| 11/10 | 7.080% | 6.380% | 6.060% |
Mortgage Choices at a Glance
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