Today’s mortgage refinance rates: January 15, 2023

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Mortgage rates have fallen significantly over the past few weeks. By the end of last week, fixed 30-year mortgage rates were about 50 basis points lower than the previous week.

Rates are expected to continue falling throughout the year, and 30-year rates could be closer to 5% by the end of 2023, according to the Mortgage Bankers Association. This will translate into greater purchasing power for home buyers and is likely to provide a much-needed boost to the housing market.

Current mortgage rates

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Current refinancing rates

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates would affect your monthly payments. By factoring in different rates and term lengths, you’ll also understand how much you’ll pay over the life of your mortgage.

Mortgage calculator

Your estimated monthly payment

  • Payment a 25% a higher payment would save you $8,916.08 at the expense of interest
  • Interest rate reduction for 1% would save you $51,562.03
  • Additional payment 500 dollars every month would reduce the length of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage in the long run.

30-year fixed mortgages

The current average 30-year fixed mortgage rate is 6.33%, according to Freddie Mac. This is a decrease from the previous week.

A 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrow over 30 years, and your interest rate won’t change over the life of the loan.

A long term of 30 years allows you to spread your payments over a longer period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you will have a higher rate than you would with shorter terms or adjustable rates.

15-year fixed mortgages

The average 15-year fixed mortgage rate is 5.52%, down from the previous week, according to data from Freddie Mac.

If you want the predictability that comes with a fixed rate, but want to spend less on interest over the life of your loan, a 15-year fixed rate mortgage may be right 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 will have a higher monthly payment than you would in the long run.

Should I Get a HELOC? For and against

If you’re looking to tap into your home equity, a HELOC might be the best way to do it right now — especially considering how much home prices have risen over the past few years. Unlike a cash-out refinance, you won’t have to get a whole new mortgage with a new interest rate, and you’ll likely get a better rate than you would with a home equity loan.

But HELOCs don’t always make sense. It is important to consider the pros and cons.


  • Pay interest only on what you borrow
  • They usually have lower rates than alternatives, including home loans, personal loans and credit cards
  • If you have a lot of equity, you could potentially borrow more than you could get with a personal loan

HELOC cons

  • Rates are variable, which means your monthly payments could go up
  • Taking equity out of your home can be risky if the property’s value declines or if you default on the loan
  • The minimum withdrawal amount may be higher than you want to borrow

When will mortgage rates fall?

Mortgage rates began rising from historic lows in the second half of 2021 and rose three percentage points in 2022. But rates have recently trended lower and are likely to decline further in 2023 and 2024.

However, rates are likely to drop dramatically soon. As inflation begins to decline, mortgage rates will also retreat somewhat. If we experience a recession, rates may fall a little faster. But average 30-year fixed rates are likely to remain somewhere in the 5% to 6% range through 2023.

How do Fed rate hikes affect mortgages?

The Federal Reserve has been raising the federal funds rate this year to try to slow economic growth and bring inflation under control. So far, inflation has slowed, but remains above the Fed’s 2% target rate.

Mortgage rates are not directly affected by changes in the federal funds rate, but they often trend up or down ahead of the Fed’s policy moves. That’s because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often influenced by how investors expect Fed hikes to affect the broader economy.

As inflation begins to decline, so should mortgage rates. But the Fed indicated it was watching for persistent signs of slowing inflation.

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