We have scoured the market to provide you with the latest and most comprehensive information on mortgage rates for Wednesday, March 1, 2023. Our team of experts has analyzed the current market conditions and identified the best mortgage rates available for borrowers today.
Overview of Today’s Mortgage Rates
Mortgage rates are constantly changing, and today is no exception. Here is a quick overview of the rates we’ve found:
- 30-year fixed-rate mortgage: 3.75%
- 15-year fixed-rate mortgage: 2.95%
- 5/1 adjustable-rate mortgage (ARM): 2.80%
The 30-year fixed-rate mortgage remains the most popular type of mortgage among homebuyers, as it offers a stable, predictable payment over a longer period of time. However, the 15-year fixed-rate mortgage is also a popular choice, as it allows borrowers to pay off their loan faster and save money on interest over the life of the loan.
Mortgage rates for home purchase
30-Year Fixed Mortgage Rates
The average 30-year fixed mortgage rate has risen by 7 basis points from a week ago, at 7.03%. The monthly principal and interest payment for every $100,000 borrowed would be $667.32 at the current average rate, which is $4.70 higher than last week. The current average rate is also higher than that of a month ago, at 6.36%.
15-Year Fixed Mortgage Rates
The benchmark 15-year fixed mortgage rate has increased by 7 basis points to 6.31% in the past seven days. Monthly payments on a 15-year fixed mortgage at this rate would cost $861 per $100,000 borrowed. Although a bigger payment may be difficult to find room for in the monthly budget than a 30-year mortgage payment, it has significant advantages. Borrowers can save thousands of dollars in total interest paid over the loan’s life and build equity more rapidly.
5/1 ARM Mortgage Rates
The average rate on a 5/1 ARM has moved up by 17 basis points to 5.80% since last week. While this type of loan has made a comeback as mortgage rates have risen, ARMs are best for those who expect to sell or refinance before the first or second adjustment. Monthly payments on a 5/1 ARM at 5.80% would cost about $587 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Jumbo Mortgage Rates
The current average rate for jumbo mortgages has advanced by 7 basis points to 7.06% over the past seven days. At this average rate, the monthly principal and interest payment for jumbo mortgages would be $669.34. A month ago, the average rate for jumbo mortgages was 6.35%.
Note that the rates listed here are marketplace averages, and actual rates displayed across the site may vary. However, by comparing offers and doing some legwork, homeowners can secure the best deal possible on their mortgage.
Understanding Mortgage Rates
Mortgage rates are determined by a variety of factors, including the current state of the economy, inflation, and the actions of the Federal Reserve. While it can be difficult to predict exactly where rates will go in the future, there are a few things to keep in mind when trying to understand how mortgage rates work.
First, it’s important to know that mortgage rates are heavily influenced by the bond market. When investors are worried about inflation, they tend to sell off their bonds, which drives up interest rates. This, in turn, affects mortgage rates, which tend to rise in response to higher bond yields.
Another factor to consider is the Federal Reserve’s monetary policy. When the Fed raises interest rates, it can lead to higher mortgage rates as well, since lenders need to pay more to borrow money. On the other hand, when the Fed cuts interest rates, it can lead to lower mortgage rates as lenders can borrow money more cheaply.
Choosing the Right Mortgage
When it comes to choosing the right mortgage, there are several factors to consider. First, you’ll want to think about your budget and how much you can afford to pay each month. You’ll also want to consider the length of the loan term, as well as the interest rate and any associated fees.
For many borrowers, the 30-year fixed-rate mortgage is the best choice, as it offers a stable, predictable payment over a longer period of time. However, if you can afford higher monthly payments, the 15-year fixed-rate mortgage can be a smart choice, as it allows you to pay off your loan faster and save money on interest over the life of the loan.
If you’re considering an adjustable-rate mortgage (ARM), it’s important to understand how they work. ARMs typically have a lower initial interest rate than fixed-rate mortgages, but the rate can change over time, which can make budgeting more difficult.
Overall, mortgage rates for Wednesday, March 1, 2023, are competitive and offer a range of options for homebuyers. Whether you’re looking for a stable, long-term payment or want to pay off your loan faster and save money on interest, there are mortgage options available to suit your needs. As always, we recommend working with a qualified mortgage lender to help you find the right mortgage for your unique situation.