Mortgage Rates Update February 2023: 30-Year Fixed Drops to 6.11% - Best Rates in 5 Months
Discover the latest mortgage rate trends for February 2023 as 30-year fixed rates fall to a five-month low, offering significant savings compared to last year's highs.
Mortgage rates have experienced a notable decline, with the 30-year fixed mortgage rate reaching its lowest point in five months as of early February 2023.
On Thursday, mortgage rates decreased across nearly all loan categories by double-digit basis points. The 30-year fixed average dropped nearly 0.25%, settling at 6.11%, marking its lowest level since late August 2022.
Current National Mortgage Rate Averages
The 30-year fixed mortgage rate declined by 22 basis points on Thursday, contributing to an overall drop of nearly one-third of a percentage point since the start of the week. At 6.11%, this rate is significantly lower than the October 2022 peak of 7.58%, representing nearly a 1.5% decrease.
The 15-year fixed mortgage rate also fell by 19 basis points, reaching 5.23%, its lowest since August 2022. This is 1.8% less than the October peak of 7.03%, the highest in 15 years.
Jumbo 30-year mortgage rates saw a modest drop of 0.125%, now at 5.40%, the lowest since September 2022 and nearly 0.875% below the 12-year high of 6.27% recorded in October.
Refinancing rates similarly declined on Thursday: the 30-year refinance rate fell by 16 basis points, the 15-year refinance rate dropped sharply by 31 basis points, and Jumbo 30-year refinance rates decreased by 13 basis points. Currently, refinancing a 30-year loan costs 22 basis points more than new 30-year purchase loans.
Following a historic rate plunge in August 2021, mortgage rates surged through the first half of 2022. The 30-year fixed rate peaked at 6.38% in mid-June, up nearly 3.5 percentage points from the summer 2021 low of 2.89%. The September and October increases pushed rates even higher, reaching 7.58%, 1.2 percentage points above the June peak.
Important Information
The mortgage rates presented here reflect national averages based on offers from over 200 top lenders. These rates typically differ from advertised teaser rates, which may require upfront points or assume ideal borrower profiles with exceptional credit scores or smaller loan amounts relative to home value.
Use our Mortgage Calculator to estimate monthly payments across various loan scenarios tailored to your financial situation.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are influenced by a complex mix of macroeconomic and industry-specific factors, including movements in the bond market (especially 10-year Treasury yields), Federal Reserve policies regarding government-backed mortgage funding, and lender competition across loan types. Because multiple factors impact rates simultaneously, pinpointing a single cause for changes is challenging.
Throughout much of 2021, macroeconomic conditions kept mortgage rates relatively low, aided by the Federal Reserve's substantial bond purchases in response to the pandemic. This bond-buying policy has a significant impact on mortgage rates, often more than the federal funds rate.
Starting in November 2021, the Fed began tapering its bond purchases, reducing them monthly until ceasing net purchases in March 2022.
The Federal Open Market Committee (FOMC) meets every six to eight weeks to evaluate monetary policy; their next meeting was scheduled for February 1, 2023.
Methodology
The national average rates cited are based on the lowest available rates from over 200 leading lenders, assuming an 80% loan-to-value (LTV) ratio and a borrower credit score between 700 and 760. These averages reflect realistic expectations for qualified borrowers, differing from promotional teaser rates.
Our state-by-state rate map lists the lowest current lender rates under the same assumptions of 80% LTV and a 700–760 credit score range.
If you have news tips related to mortgage rates or housing finance, please contact our reporters at tips@investopedia.com.
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