Insider's experts choose the best products and services to help make smart decisions with your money ( here’s how ). In some cases, we receive a commission from our partners , however, our opinions are our own. Terms apply to offers listed on this page. Most major forecasts have predicted that mortgage rates will drop in 2023, and so far that prediction has been correct. Last week, average mortgage rates fell for the fourth week in a row, according to Freddie Mac , and they'll likely remain low this week. Rates have been dropping in spite of a relatively strong economy, led by the still-hot labor market. In January, the economy added a total of 517,000 jobs , which is over 330,000 more than what economists had been expecting. Mortgage rates typically increase when the economy is good, but slowing inflation has helped them come down. Today's mortgage rates Mortgage type Average rate today This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on Zillow Today's refinance rates Mortgage type Average rate today This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on Zillow Mortgage calculator Use our free mortgage calculator to see how today's interest rates will affect your monthly payments: Mortgage Calculator Home Price Down payment % Length of loan (years) Interest rate % $ 1,161 Your estimated monthly payment More details Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Total paid $ 418,177 Principal paid $ 275,520 Interest paid $ 42,657 Ways you can save: Paying a 25% higher down payment would save you $8,916. 08 on interest charges Lowering the interest rate by 1% would save you $51,562. 03 Paying an additional $500 each month would reduce the loan length by 146 months By clicking on "More details," you'll also see how much you'll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest. Are HELOCs a good idea right now? Many homeowners gained a lot of equity over the past few years as home prices increased at an unprecedented rate. But because rates are so high now, tapping into that equity can be expensive. For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may still be a good option. A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than you would with a home equity loan or a cash-out refinance . Just keep in mind that HELOC rates are variable, so if rates start to trend up further, yours will likely increase, as well. Mortgage rate projection for 2023 Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. But many forecasts expect rates to begin to fall this year. In their latest forecast , Fannie Mae researchers predicted that 30-year fixed rates will trend down throughout 2023 and 2024. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. In the last 12 months, the Consumer Price Index rose by 6. 5% . This is a significant slowdown compared to where inflation was earlier this year, which is a sign that mortgage rates may start coming down soon as well. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. But rates probably won't drop to the historic lows borrowers enjoyed throughout 2020 and 2021. When will house prices come down? Home prices are starting to decline, but we likely won't see huge drops , even if there's a recession. The S&P Case-Shiller Home Price Index shows that prices are still up year-over-year, though they fell on a monthly basis in July and August. Fannie Mae researchers expect prices to decline 4. 2% in 2023, while the Mortgage Bankers Association expects a 0. 6% decrease in 2023 and a 1. 2% decrease in 2024. Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates may start to drop soon, which would remove some of that pressure. The current supply of homes is also historically low , which will likely keep prices from dropping too far. What happens to house prices in a recession? House prices usually drop during a recession, but not always. When it does happen, it's generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices. How much mortgage can I afford? A mortgage calculator can help you determine how much you can afford to borrow . Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget. Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income. The lower your rate, the more you'll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle. Molly Grace Mortgage Reporter Molly Grace is a reporter at Insider. She covers mortgage rates, refinance rates, lender reviews, and homebuying articles for Personal Finance Insider. Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership. You can reach Molly at mgrace@insider. com, or on Twitter @mollythegrace. Read more Read less.