Mortgage rates are ticking up slowly from 5%, reaching an average rate of 5.3% this week. The last time rates were this high was in 2009.
When rates increase, home shoppers' buying power decreases.
"There's no question that homebuyers are in a tough position at the moment, especially those who have seen their affordability impacted by the shift in rates over the past few weeks," says Robert Heck, vice president of mortgage at Morty.
If you're a homebuyer struggling with affordability due to increasing rates, it's important to keep your options open, Heck says.
"Buyers should continue to stay informed about the market and evaluate their options, both in terms of buying, remaining in their current home, and renting," he says. "They should also expand the programs, terms, and down payment structures they are evaluating, exploring the widest range of potential options possible to figure out what makes sense given the challenges of the current moment."
Current mortgage rates
Current refinance rates
Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
Length of loan (years)
Interest rate %
$1,161 Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Click "More details" for tips on how to save money on your mortgage in the long run.
Is it better to rent or buy right now?
Whether you should rent or buy depends on current costs in your area and your lifestyle. In some areas of the country, it's possible to get a mortgage with a monthly payment that's lower than the average rent — but that's not true everywhere, especially if you're in a high-cost urban area.
If you're worried about your rent continuing to increase, it might make sense to look into buying a home. While rents can go up year after year, if you have a fixed-rate mortgage, you know you'll be paying the same amount every month for as long as you have your mortgage.
"I still believe we are in a market that is advantageous to buy or own in," says Ralph DiBugnara, president of Home Qualified and senior vice president of Cardinal Financial. "Higher rates mean less buying power in some cases, but rent is rising as fast or faster than home prices because of inflation, making buying the more ideal option for many."
How are mortgage rates determined?
In general, mortgage rates tend to be high when the US economy is thriving and low when it is struggling. Mortgage rates reached all time lows during the pandemic as the Federal Reserve eased monetary policy to boost the economy. But as the central bank works to fight inflation, rates have been increasing and have surpassed 5%.
Your mortgage rate will be influenced both by current rate trends and factors you can control. With a good credit score, low debt-to-income ratio, and substantial down payment, you can secure a better rate.
How do I find personalized mortgage rates?
Some mortgage lenders let you customize your mortgage rate on their websites by entering your down payment amount, zip code, and credit score . The resulting rate isn't set in stone, but it can give you an idea of what you'll pay.
If you're ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.
How do I compare mortgage rates between lenders?
You can apply for prequalification with multiple lenders. A lender takes a general look at your finances and gives you an estimate of the rate you'll pay.
If you're farther along in the homebuying process, you have the option to apply for preapproval with several lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.
Applying for preapproval requires a hard credit pull. Try to apply with multiple lenders within a few weeks, because lumping all of your hard credit pulls into the same chunk of time will hurt your credit score less.
Molly Grace is a reporter at Insider. She covers mortgage rates, refinance rates, lender reviews, and homebuying articles for Personal Finance Insider. Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership. You can reach Molly at email@example.com, or on Twitter @mollythegrace.
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Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Laura Grace Tarpley is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF). She has written about personal finance for six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at firstname.lastname@example.org. See below for some of her work. Today's 30-year mortgage rates Here are the best mortgage lenders right now The pros and cons of paying off your mortgage early The best online high-yield savings accounts Chase checking accounts: Compare all 5 options Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »
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