January 5, 2023—Mortgage Rates Fall – Forbes Advisor

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The average rate on a 30-year fixed mortgage is 6.67%, according to Bankrate.com, while the average rate on a 15-year mortgage is 6.03%. On a 30-year jumbo mortgage, the average rate is 6.65%, and the average rate on a 5/1 ARM is 5.49%.

Related: Compare Current Mortgage Rates

Mortgage Rates for January 5, 2023

30-Year Mortgage Rates

Borrowers will pay less in interest this week as the average rate on a 30-year fixed-rate mortgage is 6.67% compared to a rate of 6.80% a week ago. The lowest rate was 6.57% over the past 52 weeks and the highest was 7.41% in the same period.

The annual percentage rate (APR), which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 6.68%. The APR was 6.82% last week.

If your mortgage is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.67%, you will pay about $643 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That’s around $131,584 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

Today’s 15-year, fixed-rate mortgage is 6.03%, up 0.13% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.90%. Today’s rate is higher than the 52-week low of 5.75%.

The APR on a 15-year fixed is 6.06%. It was 5.95% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 6.03% will cost $845 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $52,186 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 6.65%, lower than it was at this time last week. The average rate was 6.87% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 6.58%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 6.65% will pay $642 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $4,820, and you’d pay around $983,305 in total interest over the life of the loan.

5/1 ARM Rates

The current average interest rate on a 5/1 ARM is 5.49%. The 52-week low was 5.40% compared to a 52-week high of 5.60%.

If you lock in today’s 5/1 ARM interest rate of 5.49% on a $100,000 loan, your monthly payments (including principal and interest) will be $567.

Where Are Mortgage Rates Headed This Year?

During the first part of 2022, rates for home loans skyrocketed and currently sit at about 6.67% for the popular 30-year fixed-rate mortgage. Experts are divided on whether they’ll continue to soar—some forecasts put the year-end average at nearly 7%—or stay flat from here. If you’re in the market for a mortgage, you should check rates frequently, and always comparison shop for lenders.

What’s an APR, and Why Is It Important?

APR, or annual percentage rate, is a calculation that includes both a loan’s interest rate and a loan’s finance charges, expressed as an annual cost over the life of the loan. In other words, it’s the total cost of credit. APR accounts for interest, fees and time.

Since APRs include both the interest rate and certain fees associated with a home loan, the APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.

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