Mortgage Interest Rates Go Up on Aug. 15, 2023: What Does That Mean For You? (2023)

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If you're shopping for a home loan, see how your payments might be affected by interest rate hikes.

Mortgage Interest Rates Go Up on Aug. 15, 2023: What Does That Mean For You? (1)

Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor's degree in English literature.

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A couple of closely followed mortgage rates crept upward over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both climbed higher. For variable rates, the 5/1 adjustable-rate mortgage also advanced.

As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate -- a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank's goal is to reduce prices by curtailing consumer spending.

During its July 26 meeting, the Fed initiated a 25-basis point (or 0.25%) hike to its federal funds rate, marking its 11th increase in the current rate hiking cycle. The most recent increase could have an impact on mortgage rates, but experts say the markets may have already factored it into rates.

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Current Mortgage Rates for August 2023

Mortgage rates change every day. Experts recommend shopping around to make sure you're getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET's partner lenders.

About these rates:Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

"Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we're seeing now," said Jacob Channel, senior economist at loan marketplace LendingTree.

The Fed doesn't set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.

Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.

To increase your odds at qualifying for the lowest rate available, take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you'll pay is 7.51%, which is an increase of 9 basis points from seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one -- but often a higher interest rate. Although you'll pay more interest over time -- you're paying off your loan over a longer timeframe -- if you're looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.72%, which is an increase of 9 basis points from seven days ago. You'll definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, if you're able to afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.42%, an increase of 5 basis points from seven days ago. You'll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. However, you may end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. But if that's not the case, you might be on the hook for a much higher interest rate if the market rates change.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021, but increased steadily throughout 2022 as the Federal Reserve began aggressively hiking interest rates. Now, mortgage rates are well above where they were a year ago. What does this mean for homebuyers this year?

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"Mortgage rates have hovered in the 6% to 7% range for the past 10 months. Though home prices have softened slightly nationally, the still-high cost of borrowing means hopeful home buyers have felt little relief," said Hannah Jones, economic research analyst at

However, if inflation continues to decline and the Fed is able to hold rates where they are and eventually cut them, mortgage rates are likely to decrease slightly in 2023. However, they're highly unlikely to return to the rock-bottom levels of just a few years ago.

The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.6%.

"Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy," Channel said.

We use rates collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:

Today's mortgage interest rates

Loan termToday's RateLast weekChange
30-year mortgage rate7.51%7.42%+0.09
15-year fixed rate6.72%6.63%+0.09
30-year jumbo mortgage rate7.57%7.45%+0.12
30-year mortgage refinance rate 7.67%7.46%+0.21

Rates as of Aug. 15, 2023.

How to shop for the best mortgage rate

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. In order to find the best home mortgage, you'll need to take into account your goals and overall financial situation.

Things that affect the mortgage interest rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate.

The interest rate isn't the only factor that affects the cost of your home. Be sure to also consider additional factors such as fees, closing costs, taxes and discount points. You should shop around with multiple lenders -- including credit unions and online lenders in addition to local and national banks -- in order to get a loan that's right for you.

How does the loan term impact my mortgage?

When picking a mortgage, remember to consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (commonly five, seven or 10 years). After that, the rate changes annually based on the market rate.

(Video) The FED Just FLIPPED Mortgage Interest Rates

When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to live in your home. Fixed-rate mortgages might be a better fit for those who plan on living in a home for a while. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. However, you may get a better deal with an adjustable-rate mortgage if you only have plans to keep your house for a couple years. There is no best loan term as a rule of thumb; it all depends on your goals and your current financial situation. Make sure to do your research and think about your own priorities when choosing a mortgage.


What will the interest rate increase mean for my mortgage? ›

While the increase can seem relatively small it can mean the cost of borrowing is much more expensive. If you have a variable- or tracker-rate mortgage, your interest rate may already have changed. If you have a fixed-rate mortgage, the interest you pay will remain the same until your deal ends.

How high will mortgage interest rates go in 2023? ›

Doug McKnight, president of commercial real estate firm RREAF Holdings, expects mortgage rates to hold close to 7% through the end of the year. Or they could go lower. Darren Tooley, senior loan officer at Cornerstone Financial Services, predicts mortgage rates will end up in the low 6% range by year end.

What an interest rate increase will mean? ›

For those looking to invest in term deposits or bonds, an increase in interest rates will generally mean higher rates of return. Term deposits usually offer higher returns in a rising interest rate environment and lower returns in a falling interest rate environment.

Would it make sense to buy a house when mortgage rates are 14 and expected inflation is 15? ›

An investor always wants a maximum return, which falls between mortgage securities and other investment securities. The nominal rate of mortgage (14%) is high, but when it is compared to expected inflation (15%), it is lower, which in turn makes the real or effective borrowing cost negative (-1%).

Will my mortgage go up if interest rates rise? ›

So, unless you've secured a fixed-rate in advance, you'll see the effects of the rise fed rates on your mortgage payment. Should You Be Concerned? If you're in a fixed-rate mortgage, changes in the fed fund rate won't impact you much. However, if you have an ARM or HELOC loan, your payment could increase significantly.

How do you profit from rising interest rates? ›

To profit from rising interest rates, there are several strategies that investors can consider. These include investing in fixed-income securities with short durations, dividend-paying stocks, and sectors that tend to perform well in a rising interest-rate environment.

Will house interest rates go back down 2023? ›

Will mortgage rates go up in 2023? Rates aren't likely to rise with the Fed winding down the size and frequency of rate hikes. However, Channel says that rates probably won't plummet whenever the rate hikes end; instead, consumers should expect rates to drop to the 6% to 6.5% range.

Will mortgage rates go back down 2023? ›

Current mortgage interest rate trends

The average 15-year fixed mortgage rate also grew, going from 6.34% to 6.46%. After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 14-year high in 2022. Many experts and industry authorities believe they will follow a downward trajectory in 2023.

How long will the home interest rates stay high? ›

Officials at the central bank have suggested that further rate adjustments could be possible this year. They expect to cut rates in 2024, but they think it could be several years before rates return to the lower levels that were common before the pandemic.


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