Today’s mortgage interest rates – January 3, 2024

The average interest rate for a 30-year fixed mortgage hit 7.29% on Wednesday, with the rate for 15-year fixed mortgages increasing to 6.35%.

• 30-year fixed: 7.29%
• 15-year-fixed: 6.35%
• 30-year fixed jumbo: 7.17%

Today’s mortgage interest rates

Mortgage rates trended in different directions this week. The biggest mover is the 30-year fixed rate, which increased by 7 basis points week over week. (One basis point equals 0.01.)

30-year mortgage interest rates

The average 30-year fixed mortgage rate is 7.29% on Wednesday, according to Curinos data. That represents a week-over-week increase of 7 basis points.

Though it’s the most common repayment term for homeowners, 30 years isn’t always the best option. You might consider a 20- or 15-year term if the lower rates — and typically higher monthly payments — fit with your short-term budget and long-term plans.

20-year mortgage interest rates

The average 20-year fixed mortgage rate is 7.06% on Wednesday, according to Curinos data. That represents a week-over-week increase of 14 basis points.

Though less popular than 30- and 15-year terms, many reputable lenders offer the ability to select a 20-year term. Just be aware that prioritizing a 20-year term (and its higher monthly payments) over a 30-year repayment period (lower monthly dues) could limit the loan amount you’re eligible to receive.

15-year mortgage interest rates

The average daily rate for a 15-year fixed mortgage is 6.35%, according to Curinos data. Rates for 15-year home loans last month averaged 6.84%.

If you were to borrow at today’s mortgage rate for 15 years, you’d pay $3,236 in a month on a $375,000 home loan.

30-year fixed jumbo mortgage interest rates

The average 30-year fixed jumbo mortgage rate is 7.17% on Wednesday, according to Curinos data. That represents a week-over-week increase of 3 basis points.

There are also jumbo loans with a 15-year repayment term option. If you have strong credit, a big down payment saved and the budget to handle a larger monthly payment, you might prioritize a 15-year term, particularly if you can net a lower interest rate than what’s available for a 30-year term.

10/6 ARM interest rates

The average daily rate for a 10/6 ARM is 7.09%, according to Curinos data. By comparison, rates for 10/6 ARMs were 7.12% at this time last week.

With a 10/6 ARM, your rate would remain the same for the first 10 years of your repayment term. Then, it would be subject to change every six months until your loan is repaid.

7/6 ARM interest rates

The average daily rate for a 7/6 ARM is 7.14%, according to Curinos data. Rates for 7/6 ARMs last week averaged 7.15%.

If you plan to move from the home you’re purchasing within five years, a 7/6 ARM could be a good fit. You’d reap the rewards of the introductory, “teaser” interest rate and not necessarily face the higher APR once it kicks in at the eight-year mark.