Average Mortgage Rates Move Lower This Week: 30-Year Rates at 7.23% and 15-Year Rates at 6.49%

Average mortgage rates moved lower this week, thanks to lower U.S. Treasury yields. Despite the declines this week mortgage rates are still near 20-year highs and more than double where rates were back in 2020. Average 30-year fixed mortgage rates declined to 7.23%, down from the prior week's average rate of 7.32%. 15-year mortgage rates today are averaging 6.49%, a decline from last week's average rate of 6.87%

To give you a perspective of how high mortgage rates are right now, back in December 2020 average 30-year rates were 2.66% and 15-year mortgage rates were at 2.16%, much lower than current mortgage rates.

For every $100,000 borrowed at a rate of 2.66 percent the monthly payment is $403. Borrow that same $100,000 at 7.23 percent and the monthly payment jumps to $681, that's a $278 difference for every $100,000 borrowed. Multiply $278 by five times, for a $500,000 loan, and the monthly payment is $1,390 more for a 7.23% rate.

Average Mortgage Rates Move Lower This Week: 30-Year Rates at 7.23% and 15-Year Rates at 6.49%

High mortgage rates are like that pesky cousin who shows up uninvited—when they rise, they devour your monthly budget. These high mortgage rates make monthly payments soar into stratosphere and make buying a home less affordable.

Alright, before you hit the panic button, know that there are ways to take the bull by the horns. Websites like monitorbankrates.com don't just update you on mortgage rates as if they're tracking your favorite sports team—they give you tools like mortgage calculators to help you figure out the monthly payments on a mortgage.

This isn't your grandpa's mortgage market. Mortgage rates today are volatile, unpredictable, and honestly, a little scary when they are this high. Today's mortgage rates, whether they make you cheer or cry, are not permanent, eventually rates will move lower again so if you buy a home with a high rate, you can always refinance when rates move lower in the future.

Author: Brian McKay
September 1st, 2023

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