Mortgage Rates April 2023: 30-Year Average Drops to 6.67%, Jumbo Rates Hold Steady

Mortgage rates experienced a notable decline this week, with most loan categories seeing double-digit drops.

After a recent surge, mortgage rates have retreated significantly, with all but three jumbo loan categories showing meaningful decreases on Wednesday. The 15-year fixed-rate mortgage notably slipped below the 6% mark, signaling easing borrowing costs for homebuyers and refinancers alike.

Current National Mortgage Rate Averages

The 30-year fixed mortgage rate, after rising by over a third of a percentage point earlier this week, dropped 16 basis points on Wednesday to 6.67%. Over the past two months, this rate has fluctuated between a five-month low of 6.11% in early February and a 20-year high of 7.58% recorded last October.

Similarly, 15-year fixed rates decreased by 13 basis points to 5.91%, moving back below the 6% threshold. This rate has been oscillating between a recent high of 7.03% in October and a five-month low of 5.23% in February.

Jumbo 30-year mortgage rates remained steady at 5.77% for the fourth consecutive day, staying within half a percentage point of the 12-year peak of 6.27% seen in October.

Refinance rates mirrored these trends, with the 30-year refinance average dropping 11 basis points and the 15-year refinance average falling 13 basis points, while jumbo 30-year refinance rates held firm. Currently, refinancing a 30-year loan costs approximately 33 basis points more than a new 30-year purchase loan.

Since the historic low in August 2021, mortgage rates surged dramatically throughout 2022. The 30-year fixed rate peaked at 6.38% in mid-June 2022, nearly 3.5 percentage points higher than its summer 2021 low of 2.89%. The spike intensified in September and October, reaching levels 1.2 percentage points above the June peak.

Important Note

The mortgage rates presented here reflect averages and may differ from advertised teaser rates online, which often highlight the most attractive offers. These may require upfront points, assume borrowers with exceptional credit scores, or involve smaller loan amounts relative to home value.

Use our Mortgage Calculator to estimate monthly payments for various loan scenarios.

Factors Influencing Mortgage Rate Fluctuations

Mortgage rates are influenced by a complex mix of macroeconomic and industry-specific factors, including the bond market movements—particularly 10-year Treasury yields—the Federal Reserve’s monetary policies related to government-backed mortgages, and competition among lenders and loan products. Because multiple factors often act simultaneously, pinpointing a single cause for rate changes is challenging.

Throughout much of 2021, mortgage rates remained relatively low due to the Federal Reserve's bond-buying programs aimed at mitigating pandemic-related economic impacts. This policy, rather than the federal funds rate, has been a major driver of mortgage rate trends.

However, starting November 2021, the Fed began tapering bond purchases, reducing them monthly until ceasing net purchases in March 2022.

The Federal Open Market Committee (FOMC), which sets key monetary policies, meets approximately every six to eight weeks, with the next meeting scheduled to conclude on May 3, 2023.

Data Collection Methodology

The mortgage rate averages cited are derived from the lowest rates offered by over 200 leading lenders nationwide. Calculations assume an 80% loan-to-value ratio and a borrower with a FICO credit score between 700 and 760. These averages represent realistic expectations for qualified borrowers, rather than promotional teaser rates.

Our state-by-state rate map lists the lowest available rates from surveyed lenders under the same assumptions.

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