Today’s mortgage and refinance rates: January 19, 2023 | Lower rates in response to slower inflation

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It continues to show signs of slowing down, and mortgage rates has decreased slightly in response to this news.

In December 2022, price increase 6.5% year after year, according to the latest Consumer Price Index data. This is a significant decline compared to November.

Higher rates and higher interest rates from the Fed helped push mortgage rates above three percent last year. But as inflation rises, mortgage rates should start to come back down.

Mortgage rates today

Types of mortgages Calculate rates today
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mortgage rates on Zillow

Mortgage refinance rates today

Types of mortgages Calculate rates today
This information was provided by Zillow. See more
mortgage rates on Zillow

Mortgage planning

Use our Free mortgage calculator to see how your current mortgage affects your monthly and long-term payments.

Mortgage planning

Your monthly payment

  • Payment a 25% the minimum wage is better to save you $8,916.08 on interest
  • Lower interest rates b 1% you will be saved $51,562.03
  • Paying extra $500 each month reduces the duration of the loan 146 month

By plugging in different terms and interest rates, you’ll see how your monthly payments change.

Mortgage plans for 2023

Mortgage rates began to rise from lows in the second half of 2021 and rise above three percent in 2022.

But most of the information is expected to start dropping by the end of this year. To them latest newsFannie Mae analysts predicted that the 30-year fixed rate will decrease in 2023 and 2024.

But whether mortgage rates will fall in 2023 depends on whether the Federal Reserve can control inflation.

Over the past 12 months, the Consumer Price Index rose 6.5%. This is a significant reduction compared to where the price was at the beginning of this year, and is a sign that prices may begin to fall. of mortgages as soon as possible.

If the Fed were too aggressive and engineered a recession, mortgage rates could fall faster than currently expected. But rates may not drop to the lows that borrowers enjoyed two years ago.

When will house prices fall?

Housing prices are starting to fall, though we probably won’t see big dropseven if there is a defect.

Of the S&P Case-Shiller Home Price Index it shows that prices are still rising year-over-year, although they have fallen each month in the past few months. Fannie Mae analysts expect rates to fall 1.5% in 2023, while MBA expects 0.6% reduction in 2023 and 1.2% reduction in 2024.

Sky’s high mortgage rates have pushed many prospective buyers out of the market, slowing home-buying demand and putting downward pressure on house prices. But prices may begin to fall next year, which will take some of that pressure off. There is also a current housing supply low in historywhich may prevent prices from falling too far.

Fixed vs. Adjustable rate mortgages – good and bad

Fixed rate mortgage lock in your rate for the life of your loan. Flexible mortgage rates lock in your rate for the first few years, then your rate will go up or down from time to time.

ARMs usually start at lower rates than fixed mortgages, but ARM rates can go up after your initial term. If you plan to move or refinance before the rate adjusts, an ARM can be a good fit. But remember that a change in circumstances can prevent you from doing these things, so it’s a good idea to consider whether your budget can handle a higher monthly payment.

A fixed mortgage is a good option for borrowers who want stability, since your monthly principal and interest payments will not change throughout the life of the loan (although your mortgage may increase if your taxes or your insurance).

But in exchange for this stability, you will make a higher price. It may seem like a bad deal now, but if prices rise even more in a few years, you might be happy to lock in the price.

How does an adjustable rate mortgage work?

ARMs start with an introductory period that keeps your rate fixed for a certain period of time. Once that period is over, it will begin to be adjusted periodically – usually once a year or once every six months.

How much your rate will change depends on the index used by the ARM and the schedule set by the lender. Lenders choose the rate their ARMs use, and this rate can go up or down depending on current market conditions. present.

The margin is the amount of interest paid by the creditor at the top of the index. You should shop around with several lenders to find out which one offers the lowest rate.

ARMs also come with limits on how much they can change and how high they can go. For example, the ARM can be limited to 2% increase or decrease every time it is adjusted, with a maximum of 8%.

Should I get a HELOC? The good and the bad

If you are looking to use your home equity, a HELOC this is probably the best way to do it now. Not like riches refinancingYou don’t have to get a whole new mortgage with a new interest rate, and you’ll likely get a better rate than you would with a home loan.

But HELOCs aren’t always appropriate. It is important to consider the good and bad.

Successful HELOC

  • You only pay interest on what you borrow
  • They usually have lower rates than other types of loans, including home equity loans, personal loans, and credit cards.
  • If you have a lot of money, you may be able to borrow more than you can get with a personal loan.


  • Rates fluctuate, which means your monthly payments may go up
  • Taking money out of your home can be risky if property values ​​fall or you default on the loan.
  • The minimum withdrawal amount may be more than what you want to borrow

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