Current Mortgage Rates for Nov. 23, 2023: Rates Tick Down
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Though mortgage rates remain high compared to a few years ago, improved economic data and signs of cooling inflation have triggered rates to fall over the past three weeks. Experts say it’s been a welcome surprise for homeseekers, who are facing the worst housing affordability in four decades.
A handful of closely followed mortgage rates declined over the last seven days. 15-year fixed and 30-year fixed mortgage rates both slumped. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also slid lower.
The surge in mortgage rates, together with limited for-sale inventory and expensive home prices, has resulted in a reservoir of pent-up demand from anxious and ready homebuyers, said Jared Antin, managing director at the real estate agency Elegran. As soon as average 30-year fixed mortgage rates fell below 8% earlier this month, home loan applications began to increase, according to the Mortgage Bankers Association. Last week, applications for a mortgage hit their highest level in six weeks, but were still 20% lower than the same time last year, per the MBA’s weekly survey..
There’s always volatility when it comes to mortgage interest rates, which are influenced by an interplay of macroeconomic factors, such as inflation, job growth and the bond market, as well as investor confidence and global events.
Today’s average mortgage interest rates
If you’re in the market for a home, check out how today’s mortgage rates compare to last week’s. We use information collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders across the US:
Current average mortgage interest rates
| Loan type | Interest rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed rate | 7.73% | 7.75% | -0.02 |
| 15-year fixed rate | 7.02% | 7.09% | -0.07 |
| 30-year jumbo mortgage rate | 7.80% | 7.77% | +0.03 |
| 30-year mortgage refinance rate | 7.74% | 7.95% | -0.21 |
Rates as of November 23, 2023.
Where mortgage rates are headed
Though the Federal Reserve does not directly set mortgage rates, they’re affected by the government’s monetary decisions. Since early 2022, with the onset of aggressive increases to the federal funds rate to combat inflationary pressures, mortgage rates reached record-high levels.
The Fed has kept interest rates steady since late July, but mortgage rates continued climbing due to market expectations of further rate hikes. Most major mortgage rates finally saw significant dips after November’s interest-rate pause, a shift in the 10-year Treasury yield and weaker jobs data, which was then followed by a better-than-expected inflation report.
Experts anticipate we might be nearing the end of the central bank’s rate-hike cycle, which could signal the start of a slow recovery in home loan rates. “If markets believe that the Federal Reserve will adopt a permanent pause, it is reasonable to expect a decline in mortgage rates, following the trend of the 10-year yield for US…
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