Mortgage Rate Update - September 2023: What Homebuyers and Sellers Should Know

Today, we bring you the latest scoop on mortgage rates as of September 28, 2023.

Mortgage interest rates for the trusty 30-year fixed-rate loans have skyrocketed, reaching levels not seen since December 15, 2000 when they stood at 7.42%. In the current market, the 30-year fixed-rate has climbed to 7.31% from its previous 7.19%. This unexpected surge may come as a disappointment to both eager homebuyers and potential sellers who had been anticipating a more favorable rate environment this fall.

For those of you contemplating the purchase of an existing single-family home with a median price of $413,500, this rate hike equates to a monthly mortgage payment of $2,270. If your sights are set on brand new homes with a slightly higher median price of $430,300, your monthly payment would ring in at $2,362. Notably, even the 15-year fixed-rate mortgage, which had traditionally offered some solace with lower rates, has now climbed into the high 6% range, reaching 6.72%.

One striking difference between the early 2000s and today's market is the housing inventory. Back in December 2000, there were a substantial 1.87 million housing units available on the market. In contrast, the most recent data paints a picture of reduced supply, with only 1.10 million existing units available.

Like ever-changing fashion trends, we can only hope that this unexpected surge in interest rates fades away as swiftly as it appeared. Stay tuned as we keep you updated on the dynamic real estate landscape, helping you navigate these fluctuating tides in your homeownership journey.

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