Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Feb 8, 2021

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Home loan interest rates jumped significantly this week according to rate reports provided by

The 30-year rate alone increased nearly 0.2 percentage points. For the week ending May 16, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent, a significant increase from last week’s rates of 3.33 percent.

If a borrower took out a $300,000 home loan at today’s average rates, his or her monthly payment would be $1,350.49. After 30 years, he or she would pay a total of $486,176.40.

According to Freddie Mac, at this time last year, the 30-year FRM averaged 3.79 percent. Using this rate, if borrowers took an equivalent loan out a year ago, they would pay $1,396.16 monthly, for a total cost of $502,617.60 after 30 years. The savings on a $300,000 home loan today versus an identical mortgage one year ago equates to $16,441.20.

The other two rates experienced growth this week although at a slower pace. reports that the 15-year fixed-rate mortgage averaged 2.64 percent. The rate is up 0.1 percentage points from last week’s 2.54 percent average.

The 5/1 adjustable-rate mortgage (ARM) averaged 2.31 percent. This home loan interest rate increased from 2.26 percent set last week.

The reasons for the sudden increase in home loan interest rates across the board are two-fold.

First, the United States Treasury bond yielded higher this week due to stronger consumer spending. This helped to stimulate home loan interest rates.

Secondly, households are reducing their household debt. According to the Federal Reserve Bank of New York, total household debt fell by about $110 billion during the first fiscal quarter of 2013. Although there are still about 3 million homeowners classified as seriously delinquent on their mortgages, the prevalence has reduced significantly from 5.1 million seen during the fourth quarter of 2009.