The average 15-year fixed refi rate is 6.47 percent, 6 basis points higher than a week ago. Thirty-year **mortgage rates** are officially above 7%. Current mortgage rates rose to 7.08% this week, according to Freddie Mac. That represents an increase of 0.14 percentage points from the previous week.

Mortgage rates went from almost record lows to the highest in 13 years in a matter of a few months, with weekly jumps of 10 basis points or more. The APR stands for annual percentage rate and includes the interest rate plus other fees associated with the mortgage. Rates move every day as markets try to navigate a rapidly changing economy with high inflation and rising interest rates. Variable-rate mortgages may have lower interest rates from the start, but they fluctuate over the term of the loan depending on broader economic factors.

This year's increase in mortgage rates has made it much harder for homebuyers to afford a home, as monthly payments of the same loan amount are now approximately 30% higher than they were a year ago. Many of the best mortgage refinance lenders can give you free quotes to help you decide if the money you would save in interest justifies the cost of a new loan. While the Federal Reserve interest rate does not directly determine mortgage rates, both respond to inflation. No two home loans are the same, so it's important to know your options and choose the right type of mortgage.

Your mortgage rate can make a big difference in the amount of housing you can afford and the amount of your monthly payments. A mortgage discount point normally costs 1% of your loan amount and could lower your interest rate by up to 0.25 percentage points. However, a 30-year fixed rate or a 15-year fixed rate determines how much you'll pay in interest over the life of your loan. If your first loan was an FHA loan, you may need to refinance it to a conventional mortgage to get rid of mortgage insurance.

Finding the best mortgage rate is a matter of knowing your goals and choosing the right tool to do the job. Mortgage rates fluctuate for the same reasons home prices change: supply, demand, inflation, and even the United States. Average mortgage rates are usually about 1.8 percentage points higher than the 10-year promissory note yield. The first number indicates the first year in which your interest rate will change and the second number indicates how often the interest rate is restored after the first time.