February 21, 2023 Mortgage Rates Update: 30-Year Loans Near 7% - Latest Trends & Prices
Explore the latest mortgage rate trends for February 21, 2023, as 30-year fixed mortgage rates climb closer to 7%, marking the highest levels since early January. Understand what influences these changes and how they impact your home financing options.
30-Year Mortgage Rates Climb to Nearly 7% in February 2023
Mortgage rates for 30-year fixed loans inched upward again on February 21, 2023, reaching an average of 6.95%. This marks a steady rise over the past week and a half, bringing rates to their highest point in six weeks and just shy of the 7% milestone. This increase follows a pattern of gradual rate hikes seen since early January.
Current National Mortgage Rate Averages
The 30-year fixed mortgage average rose by three basis points to 6.95%, the highest since January 5, when it was 6.99%. Although this is below the 7.58% peak observed in October 2022, it signals a notable upward momentum. Meanwhile, 15-year fixed rates nudged up slightly to 6.24%, their most expensive level in nearly three months but still well below the October 7.03% high.
Jumbo 30-year mortgage rates remained stable at 5.90%, maintaining their highest level since early January. This rate is 37 basis points below the 12-year peak of 6.27% seen in October 2022.
Refinancing rates for 30-year loans increased more sharply, gaining eight basis points, while 15-year refinance rates rose by two basis points. Jumbo 30-year refinance rates held steady. Currently, refinancing a 30-year loan costs about 27 basis points more than obtaining a new purchase loan of the same term.
After historic lows in August 2021, mortgage rates surged dramatically in 2022. The 30-year average hit 6.38% in mid-June 2022, nearly 3.5 percentage points above the summer 2021 low of 2.89%. The subsequent surge in September and October pushed rates even higher, reaching a 12-year high.
Important Considerations
The mortgage rates presented here reflect averages based on typical borrower profiles and loan conditions. Advertised teaser rates online often represent the most attractive offers and may require upfront points or assume exceptional credit scores and loan sizes. Therefore, actual rates offered may vary.
Use our Mortgage Calculator to estimate monthly payments for various loan scenarios tailored to your situation.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates result from a complex interplay of economic and industry factors, including the bond market performance—especially 10-year Treasury yields—the Federal Reserve's monetary policies related to mortgage-backed securities, and lender competition. Because multiple elements influence rates simultaneously, pinpointing a single cause for rate changes is challenging.
Throughout much of 2021, macroeconomic conditions kept mortgage rates low, supported by the Federal Reserve's extensive bond-buying program responding to pandemic-related economic challenges. This policy, more than the federal funds rate, significantly impacts mortgage rates.
Starting November 2022, the Fed began tapering its bond purchases, reducing them monthly until ceasing in March 2023. The Federal Open Market Committee (FOMC) meets regularly, with the next session scheduled to conclude on March 22, 2023, potentially influencing future rate directions.
Methodology
The national mortgage rate averages are calculated using the lowest rates offered by over 200 leading lenders nationwide. These rates assume an 80% loan-to-value (LTV) ratio and a borrower with a FICO credit score between 700 and 760. These figures represent realistic expectations for qualified borrowers and may differ from promotional teaser rates.
State-specific best rates are based on the lowest rates currently available from surveyed lenders under the same assumptions.
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