Mortgage Rates Today, Wednesday, May 13: Kind of a Big Jump

Mortgage interest rates are higher today on the heels of hot new inflation data.

The average interest rate on a 30-year, fixed-rate mortgage jumped to 6.33% APR, according to rates provided to NerdWallet by Zillow. This is 10 basis points higher than yesterday and 11 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

While rising rates can be discouraging, it’s not worth it to try and time the market. If you can afford rates where they are today, don’t be afraid to start shopping — you can always refinance later if rates come down.

Markets have begun to suspect that the Federal Reserve could actually raise interest rates in the fall, putting upward pressure on mortgage rates now. Analysts are currently predicting that central bankers will hold rates steady at their meeting next month, though predicted odds of a rate hike grow from less than 10% in September to over 20% in October.

This environment could create tensions among central bankers over the coming months, especially if the war continues to drag out. Incoming Fed chair Kevin Warsh could be confirmed as soon as this week, and he’s made no secret of his rationale for lowering interest rates. If he holds firm to his rate slashing goals, he’ll likely bump up against two camps: one group of Fed governors who’d prefer to hold rates steady, and another that will push to move rates upwards in the opposite direction.

Markets depend on the Fed to act predictably, and mortgage rates will typically move before a meeting. If we see growing dissent among central bankers, markets could soon become more reactive than proactive.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you may want to start considering a refi if your current rate is around 6.83% or higher.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.