Mortgage Interest Rates Forecast

Kate Wood
By Kate Wood 

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Mortgage rates today: Tuesday, January 31, 2023

On Tuesday, Jan. 31, 2023, the average interest rate on a 30-year fixed-rate mortgage rose 10 basis points to 6.34% APR. The average rate on a 15-year fixed-rate mortgage went up 15 basis points to 5.451% APR, and the average rate on a 5-year adjustable-rate mortgage rose two basis points to 6.65% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is one basis point lower than one week ago and 275 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.

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Mortgage rates this week

Mortgage rates broke the downward trend of the month so far, heading higher in the week ending Jan. 26. Even so, interest rates for fixed-rate mortgages are markedly lower than they were at the beginning of the month.

  • The 30-year fixed-rate mortgage averaged 6.26% APR, up 18 basis points from the previous week's average.

  • The 15-year fixed-rate mortgage averaged 5.26% APR, up three basis points from the previous week's average.

  • The five-year adjustable-rate mortgage averaged 6.63% APR, up four basis points from the previous week's average.

In the latest NerdWallet Home Buyer Report, 3 in 5 Americans describe current mortgage rates as "unprecedented." But it's the ultra-low interest rates of 2020 and 2021 that were never before seen.

And this week's average 30-year-fixed rate of 6.26% is almost a half a percentage point lower than the average 30-year fixed rate over the past 50 years, which comes out to 7.75%, according to data from Freddie Mac.

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The next Federal Reserve meeting starts on Jan. 31, and daily mortgage interest rates have swung back and forth a bit as markets await the central bankers' Feb. 1 announcement. Though it isn't a sure thing until the Fed meeting actually ends, markets seem pretty certain that there will be a 25-basis-point increase. That's less than the December raise, thanks to growing consensus that the Fed's rate hikes have worked and inflation is starting to slow.  

Smaller rate increases are still rate increases, though, and even when the increases stop — as it's widely anticipated they will this year — the Fed does not plan to let interest rates drop. On the contrary, Federal Reserve bankers have repeatedly emphasized the need to keep rates high as long as possible in order to control inflation.

If you're waiting for mortgage rates to come down to get into the housing market, don't hold your breath.

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