15-Year Mortgage Rates for January 2023

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A short-term 15-year mortgage can be ideal for homebuyers that want to secure the absolute lowest possible interest rate and can afford higher monthly payments. 

Here’s what you need to know about 15-year mortgage rates and how to make the best decision for you.

The Latest Mortgage Rate & Housing News

What’s Going On With Rising Mortgage Rates?

Mortgage rates have been on the rise since the start of the year and haven’t stopped yet. A big reason behind the increase is that inflation has remained at its highest level in 40 years. The Consumer Price Index was up 8.2% year-over-year in September – lower than August but still well above what markets and the Federal Reserve are comfortable with.

The Fed’s approach to high inflation has been to raise its benchmark short-term interest rate, a strategy that aims to make borrowing more expensive and encourage saving, driving down demand for goods and services and reducing prices. The Fed last raised its federal funds rate in September, and is expected to do so again in November.

The economic situation has mortgage rates jumping up and down on a daily basis.

“The market just can’t really decide which way it wants to go in terms of the direction of rates,” says Melissa Cohn, regional vice president of William Raveis Mortgage in New York.

Don’t expect mortgage rates to plummet until economic conditions change, experts say.

“Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” Odeta Kushi, deputy chief economist at First American Financial Corporation, told us.

What Can Homebuyers Do About Rising Mortgage Rates?

The current housing environment is particularly tough for first-time homebuyers, but it might still make sense to buy. “It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” Eileen Derks, head of mortgage at Laurel Road, told us

Rising mortgage rates have made affordability increasingly difficult for homebuyers, despite some drops in home prices. If you’re considering a mortgage, experts say it’s more important than ever to shop around with different lenders, as rates can vary dramatically from day to day and from lender to lender.

“Until you’re ready to lock, you need to keep your eye on more than one ball,” Cohn says.

What’s Happening With Home Prices?   

The big surge in mortgage rates has started to bring down home prices. The median existing home sold for $389,500, up 7.7% from a year earlier but down from figures of more than $400,000 seen earlier in the summer, according to the National Association of Realtors (NAR).

How quickly the housing market is turning around depends on where you are. In some cities, prices are seeing month-to-month price drops of nearly 3%, while others are still riding a wave of increases. “It’s very market-dependent at the moment,” says Robert Heck, vice president of mortgage at Morty, an online mortgage broker. 

Home sales figures are dropping significantly – down 0.4% from July to August and nearly 20% from August 2021 – in part because homeowners who have favorable mortgage rates are unwilling to sell and get a loan at a much higher rate. 

Homebuyers facing a difficult environment can find creative ways to save money on a home purchase. One is to consider an adjustable-rate mortgage, Cohn says. They tend to offer periods of several years with a fixed rate – and it should be significantly lower than a 30-year fixed rate would be – before the rate starts to adjust with the market. That should give you a few years to refinance if the market improves.

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What Are Today’s 15-Year Fixed Mortgage Rates?

On Saturday, January 28, 2023 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 15-year fixed mortgage rate is 5.670% with an APR of 5.700%. The average 15-year fixed mortgage refinance rate is 5.710% with an APR of 5.740%.

Current 15-Year Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate6.470%6.490%
30-Year FHA Rate5.650%6.560%
30-Year VA Rate5.800%6.000%
30-Year Fixed Jumbo Rate6.500%6.510%
20-Year Fixed Rate6.370%6.390%
15-Year Fixed Rate5.710%5.740%
15-Year Fixed Jumbo Rate5.770%5.790%
10-Year Fixed Rate5.680%5.710%
5/1 ARM Rate5.340%7.170%
5/1 ARM Jumbo Rate5.370%6.910%
7/1 ARM Rate5.770%7.120%
7/1 ARM Jumbo Rate6.030%6.750%
10/1 ARM Rate6.320%6.870%
ProductInterest RateAPR
30-Year Fixed Rate6.440%6.460%
30-Year FHA Rate5.670%6.570%
30-Year VA Rate5.830%5.950%
30-Year Fixed Jumbo Rate6.460%6.470%
20-Year Fixed Rate6.400%6.420%
15-Year Fixed Rate5.670%5.700%
15-Year Fixed Jumbo Rate5.750%5.770%
10-Year Fixed Rate5.660%5.690%
5/1 ARM Rate5.420%7.410%
5/1 ARM Jumbo Rate5.500%7.400%
7/1 ARM Rate5.730%7.220%
7/1 ARM Jumbo Rate6.060%6.800%
10/1 ARM Rate6.170%7.140%

Rates as of Saturday, January 28, 2023

ABOUT THESE RATES

These rate averages are based on weekday mortgage rate information provided by national lenders to Bankrate.com, which like NextAdvisor is owned by Red Ventures.

These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Pros and Cons of a 15-Year Mortgage 

A 15-year fixed rate mortgage will cost much less in interest compared to a 30-year home loan. But not everyone can afford the higher payment. Here are the pros and cons to consider:

Pros

  • Lower interest rates

  • Shorter repayment term

  • Build equity more quickly

  • Pay much less interest in the long term

Cons

  • Higher monthly payments

  • Less money to invest each month

  • Less money available to save each month

15-Year Mortgage Rate: Frequently Asked Questions (FAQ)

What is a 15-year fixed rate mortgage?

A 15-year fixed-rate mortgage is repaid over a 15-year period and has an interest rate that never changes. Typically, 15-year mortgages have lower interest rates than comparable 30-year fixed rate mortgages. The tradeoff is your monthly payments increase as your repayment period gets shorter.

What is a good 15-year fixed rate mortgage?

The actual mortgage rate you qualify for will vary depending on the lender and your personal financial situation. Rates are expected to continue rising into 2022, and the definition of a good rate may change over time. Overall, relative to prepandmic rates, mortgage rates are currently still in the favorable range. 

How do I compare 15-Year fixed mortgage rates?

When shopping for the best mortgage rate you need to consider the overall cost of the loan, not just the interest rate. Mortgage closing costs can be 3%-6% of the loan amount and the fees you pay vary by lender. The lender with the lowest rate could be more expensive overall if it is charging higher origination fees or adding in discount points. This is why you should compare annual percentage rates (APR), which factor in certain fees in addition to the interest rate, as opposed to just the interest rate.

You can compare interest rates and fees by looking at the Loan Estimate, which the lender must provide within three business days from when you submit a mortgage application. Since all lenders are required to use the same Loan Estimate form, it’s easy to evaluate multiple offers.

What is the difference between a 15-year mortgage versus a 30-Year mortgage?

Short term mortgages, like a 15-year loan, means a higher monthly mortgage payment that can be 40% to 50% higher than a 30-year mortgage. But you’ll be able to pay off the loan much sooner. The flip side, a 30-year mortgage means a lower mortgage payment — but it will greatly increase the interest you’ll pay over the life of the loan.

LOAN TERMINTEREST RATELOAN AMOUNTMONTHLY PAYMENTTOTAL LOAN COST
15-Year Mortgage2.75%$300,000$2,035$366,492
30-Year Mortgage3.25%$300,000$1,305$470,176

The other big consideration with 15-year versus 30-year mortgages is the difference in interest rate. While rates vary from day to day, the spread between these two loan terms can easily be 0.50% to 0.75%, which is sizable.

How do I know if a 15-year fixed mortgage is right for me?

A 15-year fixed mortgage is an excellent option for financing your home purchase if you want to pay as little interest as possible, but it’s not the best choice for everyone. For many potential homeowners a 15-year loan simply isn’t an affordable option

You can typically borrow more with a 30-year mortgage than with a 15-year loan. This is because the amount you can borrow is based on your debt-to-income ratio (DTI), and the higher monthly payments that come with 15-year loans will increase your DTI. This means some homebuyers shopping in expensive markets may not have enough income to qualify for a 15-year loan, even with excellent credit.

How do I find personalized 15-year mortgage rates?

To find personalized 15-year mortgage rates you’ll need to compare offers from different lenders. Start off by getting preapproved – this will give you a general idea of how much you can borrow and what rates you’ll qualify for. Then, once you’ve had a purchase offer for a home accepted, you should choose a small handful of lenders to submit applications to.

After submitting your mortgage application, each lender will provide you with a Loan Estimate and you should be able to lock the best rate.