Refinance rates are currently between 6.5% and 7.5%, but your personal interest rate will depend on your credit history, financial profile and application.
Average refinance rates reported by lenders across the US as of March 1, 2024. We track refinance rate trends using information from Bankrate.
Mortgage refinance rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
How to select the right refinance type and term
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.
30-year fixed-rate refinance
The average rate for a 30-year fixed refinance loan is currently 7.10%, an increase of 1 basis point over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.
15-year fixed-rate refinance
For 15-year fixed refinances, the average rate is currently at 6.60%, a decrease of 2 basis points compared to one week ago. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
10-year fixed-rate refinance
For 10-year fixed refinances, the average rate is currently at 6.45%, a decrease of 4 basis points compared to one week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
What to know about today’s refinance rates
Refinance rates dropped significantly toward the end of 2023, bringing much-needed activity to the housing market. Since early February, however, rates have climbed back into the 7% range. The increase came after recent inflation and labor data made it clear to investors that the Federal Reserve won’t start cutting interest rates until early this summer. Higher mortgage rates make refinancing less attractive to homeowners, making them more likely to hold on to their existing mortgages.
30-year fixed refinance: 7.10%
15-year fixed refinance: 6.60%
10-year fixed refinance: 6.45%
What to know about 2024 refinance rate trends
Experts say slowing inflation and the Fed’s projected interest rate cuts should help push mortgage interest rates down to around 6% by the end of 2024, but that will depend on incoming economic data.
Over 82% of homeowners currently have interest rates below 5% on their property. If home loan rates stabilize over the next several months, more homeowners should be able to save money through refinancing. Yet in order for refinance applications to pick up in a meaningful way, rates would need to fall substantially, according to Mark Zandi, chief economist at Moody’s Analytics.
For homeowners looking to refinance, remember that you can’t time the market: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of macroeconomic factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.
Refinancing 101
When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.
Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.
Refinancing in today’s market could make sense if you have a rate above 8%, said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, it’s a personal financial choice because of the cost that goes with the loan process,” Mohtashami said.
Reasons to refinance
Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:
To get a lower interest rate: If you can secure a rate that’s at least 1% lower than the one on your current mortgage, it could make sense to refinance.
To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage.
To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity.
To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run.
To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense.
To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
Average mortgage rates just inched lower yesterday. And they were effectively unchanged over the last seven days.
Next week, the direction those rates take will probably hinge almost entirely on Friday’s jobs report and appearances before Congress of the Federal Reserve’s chair. (More on those below.) Of course, nobody knows what they will say. So, once again, I’m forced to say mortgage rates next week could go either way.
Find and lock a low rate
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.27%
7.29%
-0.02
Conventional 15-year fixed
6.68%
6.71%
-0.02
Conventional 20-year fixed
7.11%
7.14%
-0.02
Conventional 10-year fixed
6.59%
6.61%
-0.03
30-year fixed FHA
6.31%
6.98%
-0.08
30-year fixed VA
6.64%
6.75%
Unchanged
5/1 ARM Conventional
6.31%
7.39%
Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Find and lock a low rate
Should you lock a mortgage rate today?
There’s no such thing as certainty in future mortgage rates. However, the chances of their gently gliding lower in 2024 are good. Unfortunately, it’s looking unlikely that the happy trend will arrive before late spring, and possibly well into the summer.
So, my personal rate lock recommendations are now:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
What’s moving current mortgage rates
Next week’s jobs report
Two monthly economic reports vie for the top spot as the most consequential for mortgage rates. One, the jobs report, is due next Friday. And the other, the consumer price index (CPI), is scheduled for the following Tuesday.
We’ll deal with the CPI next week. But let’s look at what the jobs report (formally called the employment situation report) for February might do.
With almost all economic data, mortgage rates tend to fall when the figures in a report are lower than markets are expecting. One exception crops up in the jobs report. It’s better for mortgage rates when the unemployment rate is higher than expected.
Before each report, analysts come up with a consensus forecast. And many investors trade ahead of publication based on the forecast, pricing it into mortgage rates and assets. So, when the forecast is wrong, investors are left scrambling to buy or sell assets as they rebalance their portfolios to reflect reality. The asset that largely determines mortgage rates is a type of bond called a mortgage-backed security (MBS).
So, let’s see what markets are expecting, according to MarketWatch, from the jobs report:
Nonfarm payrolls (new jobs added during the month) — 210,000 in February, down from 353,000 in January
Unemployment rate — 3.7% in February, unchanged from January
Hourly wages — 0.2% in February, down from 0.6% in January
To be clear, mortgage rates tend to fall when economic data are worse than expected. So, we’d like nonfarm payrolls to be below 210,000, hourly wages to have risen more slowly than 0.2%, and the unemployment rate to be higher than 3.7%.
Chances are, the jobs report will on Friday swamp the effects of all the other economic reports next week. But a few of the lesser ones might cause some volatility earlier in the week.
Other important reports next week
The ones most likely to do so are:
January factory orders on Tuesday — Expected to fall to -3.1% from December’s +0.2%
February purchasing managers’ index (PMI) from the Institute for Supply Management (ISM) — Expected to fall slightly
February ADP employment report for the private sector on Wednesday — Expected to rise to 150,000 from 107,000 in January. Sometimes seen as a bellwether for the jobs report
January job openings and labor turnover survey (JOLTS) on Wednesday — Openings are expected to dip slightly to 8.9 million from 9 million in December. A helpful peek under the labor market’s hood
Second reading of productivity during the last quarter of 2023 (Q4/23) on Thursday — Expected to be a shade lower than the first reading at 3.1% compared to 3.2%
We’d need to see big variations from the analysts’ consensus forecasts for these to move mortgage rates far or for long. But any of these might push those rates up or down.
The Fed
Although these and other reports routinely move mortgage rates even when inflation and the Federal Reserve are not front of mind, things are different now. Investors tend to view the data through the prism of how they might affect the Fed’s decisions on the timing and scope of future cuts to general interest rates.
One way they can gauge that is by listening to what top Fed officials say in public. And those have nine speaking engagements next week.
Most importantly, Fed Chair Jerome Powell is due to provide evidence to Congress next Wednesday and Thursday. His voice is highly influential and his testimony could easily move mortgage rates.
The Fed will next decide on rate policy on Mar. 20. Very few expect it to cut general interest rates that day. But Wall Street hopes it will strongly hint at cuts at the May or June meetings of its rate-setting committee.
Economic reports next week
See above for details about the more important economic reports next week.
In the following list of next week’s reports, only those in bold typically have the potential to affect mortgage rates appreciably. The others probably won’t have much impact unless they contain shockingly good or bad data.
Monday — Nothing
Tuesday — February ISM PMI. Also factory orders for January
Wednesday — Fed Chair Jerome Powell testifies to Congress. Also February’s ADP employment report and January’s JOLTS
Thursday — Fed Chair Jerome Powell testifies to Congress (again). Plus productivity in Q4/23. And initial jobless claims for the week ending Mar. 2
Friday — February jobs report
The jobs report is by far the most important publication next week. But watch out, too, for the Fed chair’s appearances before Congress.
Time to make a move? Let us find the right mortgage for you
Mortgage rates forecast for next week
Once again, mortgage rates are unpredictable next week. Whether they move higher or lower will largely depend on the jobs report (which regularly confounds analysts’ forecasts) and on what Fed Chair Jerome Powell tells Congress.
How your mortgage interest rate is determined
A bond market generally determines mortgage and refinance rates. It’s the one where trading in mortgage-backed securities takes place.
And that’s highly dependent on the economy. So mortgage rates tend to be high when things are going well and low when the economy’s in trouble. But inflation rates can undermine those tendencies.
Your part
But you play a big part in determining your own mortgage rate in five ways. And you can affect it significantly by:
Shopping around for your best mortgage rate — They vary widely from lender to lender
Boosting your credit score — Even a small bump can make a big difference to your rate and payments
Saving the biggest down payment you can — Lenders like you to have real skin in this game
Keeping your other borrowing modest — The lower your other monthly commitments, the bigger the mortgage you can afford
Choosing your mortgage carefully — Are you better off with a conventional, conforming, FHA, VA, USDA, jumbo or another loan?
Time spent getting these ducks in a row can see you winning lower rates.
Remember, they’re not just a mortgage rate
Be sure to count all your forthcoming homeownership costs when you’re working out how big a mortgage you can afford. So, focus on something called you “PITI.” That stands for:
Principal — Pays down the amount you borrowed
Interest — The price of borrowing
Taxes — Specifically property taxes
Insurance — Specifically homeowners insurance
Our mortgage calculator can help with these.
Depending on your type of mortgage and the size of your down payment, you may have to pay mortgage insurance, too. And that can easily run into three figures every month.
But there are other potential costs. So, you’ll have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repairs and maintenance costs. There’s no landlord to call when things go wrong!
Finally, you’ll find it hard to forget closing costs. You can see those reflected in the annual percentage rate (APR) that lenders will quote you. Because that effectively spreads them out over your loan’s term, making that rate higher than your straight mortgage rate.
But you may be able to get help with those closing costs and your down payment, especially if you’re a first-time buyer. Read:
Down payment assistance programs in every state for 2023
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The result is a good snapshot of daily rates and how they change over time.
Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.
We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.
March 1, 2024 at 9:41 AM
We start a new month with relatively steady mortgage rates, with 30-year fixed rates dropping to 7.12% and 15-year fixed rates hitting 6/57%. 5/1 ARM rates ticked slightly higher, hitting 6.55% and 30-year fixed refinancing is coming in at 7.10%. Though adjusting slightly by basis points, these numbers are fairly consistent in the first two months of the year. Rates were starting to trend in an unfavorable direction, with rates hitting the highest numbers since December 2023, but things have cooled slightly. This downward direction may be in anticipation of the latest inflation reports coming out soon. Predictions of a bumpy road for potential homebuyers seem to be a reality now, as rates are not falling as quickly as hoped. An overall downward trend is expected, but as of today, Friday, March 1, 2024, here’s where the numbers stand.
30-year fixed rates are 7.12%
15-year fixed rates are 6.57%
5/1 adjustable rate mortgages are 6.55%
30-year fixed refinance rates are 7.10%
The unchanged interest rates by the Federal Reserve have mostly positively impacted mortgage rates. Inflation has slowed in recent months, and market conditions are favorable with more student loan forgiveness announced today. Fed governor Christopher Waller believes the 2% inflation target rate is on the horizon. While the Fed rate does not determine mortgage rates, it sets benchmarks and impacts other rates, like mortgages.
Current Mortgage Rates for March 1, 2024
The National Association of Realtors does expect mortgage rates to steady in the 6% range by year’s end, but it will take a lot of ups and downs to arrive there ultimately. The Fed has a firm 2% inflation rate goal and with favorable economic reports on the job market, it’s unlikely they will cut rates until that goal becomes more of a reality. The latest announcement from the Fed kept rates steady again, signaling things are on the right track and hopeful homebuyers may have a more favorable market in 2024.
Daily Mortgage Rate Frequently Asked Questions
What is a mortgage rate? The rate of interest paid by the borrower to a lender for the length of a loan term. There are two types of rates: fixed and variable. Fixed remains the same and variable rates will fluctuate based on market conditions after a certain amount of time.
What are mortgage lenders? They are financial institutions that loan money to homebuyers. They are different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, conversing directly with borrowers and sending monthly statements.
What does it mean to refinance a mortgage? This is essentially trading in your current mortgage to another lender for more favorable rates and/or terms for your current loan. The new lender pays off your old mortgage and you then owe the new lender a monthly payment.
What factors influence mortgage rates? Mortgage rates are impacted by many factors, including inflation rates, economic conditions, housing-market trends, and the Federal Reserve’s policies. Lenders will also consider your credit score, down payment amount and other terms of the loan you’re requesting, like 30-year or 15-year offers.
How do I get the best mortgage rate? The best way to secure a good mortgage rate is to maintain a good credit score, have a stable income, shop around and research lenders, as well as understand and consider different types of loan options that are most suitable for your life and income. In some cases, increasing the down payment amount can result in better rates, too.
What is the difference between a fixed or adjustable-rate mortgage (ARM)? Fixed-rate mortgages offer a consistent interest rate throughout the period of the loan, whereas ARMs will typically start with a lower fixed rate for an agreed-upon time frame (e.g., 5-year ARM would have a fixed rate for the first 5 years) but will adjust to a variable interest rate based on market conditions for the remainder of the loan term. So, you could wind up paying more or less than your initial rate. Choosing between them depends on individual financial goals and risk tolerance.
When is the best time to lock in a mortgage rate? Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan. Market conditions will impact the rates offered, so it’s important to pay attention to the changes.
How does the Federal Reserve impact mortgage rates? The Federal Reserve’s changes to rates for federal funds can influence short-term and long-term interest rates, which indirectly impacts mortgage rates, but it is an important distinction to know that mortgage rates are not directly determined by the Fed.
Can I negotiate my mortgage rate? Lenders set their rates using many factors so there may not be room to negotiate. You can, however, discuss options for reducing costs in other ways with your potential vendors.
What is the average mortgage rate in the US? Mortgage rates fluctuate and can vary based on loan terms, economic conditions, and individual qualifications. Checking current rates from different lenders will give you the best sense of rates each day.
The US economy is in a tricky spot. To close out 2023, fourth quarter GDP measured at a robust 3.3% annual growth rate, but inflation remains above the Fed’s desired 2% target, so the central bank has yet to cut interest rates. Still, many expect that rate cuts will come this year as the economy and inflation cool down more. For the mortgage market, that could also mean that rates come down.
Already, 30-year mortgage rates have fallen from recent highs. While they reached approximately 8% in October 2023, they now average 6.63% as of the beginning of February 2024, according to Freddie Mac.
But what will happen the rest of the year? Below, we’ll look at three possible mortgage rate scenarios.
If you’re in the market to buy a home then start by exploring your mortgage rate options here now.
Will mortgage rates drop below 6% in 2024?
Here are three possible scenarios for mortgage rates this year, according to the experts we spoke to.
Mortgage rates will drop below 6%
Mortgage rates could continue to trend downward this year, especially once the Fed starts cutting the federal funds rate.
“Mortgage rates will go down in 2024. How much and when depends on the economy and inflation. I believe that we will see rates trending to 6% in the summer, perhaps not until late summer,” says Melissa Cohn, regional VP at William Raveis Mortgage. After that, “I believe that rates will drop below 6% and stay below 6% for the year.”
Some experts predict an even larger drop, though still not at pandemic-era levels.
“I believe they will fall to 4.25%,” says Dan Green, CEO at Homebuyer.com. “Inflation is solved, lenders are competitive, and the bond market is finding its health.”
See how low of a mortgage rate you could get now.
Mortgage rates will drop somewhat but not below 6%
While some people think that mortgage rates will fall further, not everyone is convinced that they’ll drop significantly from their current levels. As mentioned, GDP remains strong, and lower rates tend to coincide with a weakening economy, which might not occur.
Shannon Feick,co-owner and co-founder at ASAP Properties, LLC, says he’s “confident that the relatively strong economy will likely prevent rates from falling below 6% in 2024, but with inflation cooling, mortgage rates will fall slightly from their current levels.”
Still, it’s possible that the economy’s health and inflation rate get thrown off by unexpected events, like how geopolitical conflicts have caused oil price swings, which can ultimately influence interest rate decisions.
“I do believe that curveballs like geopolitical events or significant shifts in the job market could alter this forecast, but only by a small amount,” says Feick.
Mortgage rates will stay the same
Another scenario could be that rates end up staying essentially the same, with mid-6% interest rates persisting.
“I think rates will stay flat on average this year, meaning that they will stay in the mid-6s, which is where we dropped to at the end of the year, going into 2024,” says Sam Sharp, executive VP of mortgage lending at Guaranteed Rate.
It’s also possible that rates go higher, but Sharp thinks that the current levels seem to be working.
“I believe that the markets have tested their threshold. When rates capped over 8% the housing market saw a steep decline. As soon as rates dropped into the mid-6s we saw a quick change, and this looks to be a sweet spot in the current environment,” he says.
“Not only is this a level that buyers seem more comfortable with, but I feel this is a good baseline for some sellers, and their motivation is what we need to create a balanced housing market,” explains Sharp.
Learn more about today’s mortgage rates online here.
The bottom line
It’s hard to predict exactly where mortgage interest rates will go in 2024, as much depends on factors like the state of the economy and how the Fed responds to inflation. But if you can afford to buy a home now at current levels, you might be better off doing so for two main reasons.
One, it’s hard to say how long you’ll have to wait for rates to drop — if they do at all — and you might not want to put your home search on hold indefinitely. Two, a decrease in mortgage rates could increase competition among homebuyers, as those who have been waiting for rates to drop might jump in, thus complicating the process.
However, one advantage of waiting to buy a home could be that more sellers jump in, too. Some sellers have been reluctant to give up their homes and then buy a new one at high mortgage rates. But if rates do drop, or if sellers simply get more accustomed to current rates as the new normal, then that could increase inventory.
So, you’ll have to weigh these factors, along with looking at your finances and the local conditions in your desired area to see what makes the most sense for you. And while you probably don’t want to bank on it, mortgage refinancing could be an option down the road if rates drop further.
Start exploring your current mortgage rate options here.
If you’re in the market for a home, here are today’s mortgage rates compared to last week’s.
Loan type
Interest rate
A week ago
Change
30-year fixed rate
7.18%
7.10%
+0.08
15-year fixed rate
6.64%
6.51%
+0.13
30-year jumbo mortgage rate
7.11%
7.02%
+0.09
30-year mortgage refinance rate
7.19%
7.10%
+0.09
Average rates offered by lenders nationwide as of Feb. 29, 2024. We use rates collected by Bankrate to track daily mortgage rate trends.
Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
How to select a mortgage term and type
When picking a mortgage, consider the loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. You’ll also need to choose between a fixed-rate mortgage, where the interest rate is set for the duration of the loan, and an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market’s current interest rate. Fixed-rate mortgages offer more stability and are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 7.18%, which is an increase of 8 basis points from seven days ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.64%, which is an increase of 13 basis points from seven days ago. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.35%, a slide of 1 basis point compared to last week. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
What to know about today’s mortgage rates
High inflation and the Federal Reserve’s aggressive interest rate hikes drove up mortgage rates over the last several years. Toward the end of last year, however, the Fed announced that interest rate cuts were on the table for 2024. That projection led to a significant drop in mortgage rates, pushing them into the 6% range. Since early February, however, mortgage rates have climbed back above 7% in response to strong economic data.
30-year fixed mortgage: 7.18%
15-year fixed mortgage: 6.64%
5/1 adjustable-rate mortgage: 6.35%
Where mortgage rates are headed in 2024
Experts say interest rate cuts from the Fed will allow mortgage rates to ease, though the first cut won’t likely come until May or June, depending on how quickly inflation decelerates.
“We are expecting mortgage rates to fall to around 6.5% by the end of this year, but there’s still a lot of volatility I think we might see,” said Daryl Fairweather, chief economist at Redfin. “It’s possible that rates might go up before they go down again, so that’s why we’re still being conservative with rates being around 6.5%.”
Each month brings a new set of inflation and labor data that can change how investors and the market respond and what direction mortgage rates go, said Odeta Kushi, deputy chief economist at First American Financial Corporation. “Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates,” Kushi said.
While mortgage forecasters base their projections on different data, most experts and market watchers predict rates will move toward 6% or lower by the end of 2024. Here’s a look at where some major housing authorities expect average mortgage rates to land.
What factors affect mortgage rates?
While it’s important to monitor mortgage rates if you’re shopping for a home, remember that no one has a crystal ball. It’s impossible to time the mortgage market, and rates will always have some level of volatility because so many factors are at play.
“Mortgage rates tend to follow long-date Treasury yields, a function of current inflation and economic growth as well as expectations about future economic conditions,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
Here are the factors that influence the average rates on home loans.
Federal Reserve monetary policy: The nation’s central bank doesn’t set interest rates, but when it adjusts the federal funds rate, mortgages tend to go in the same direction.
Inflation: Mortgage rates tend to increase during high inflation. Lenders usually set higher interest rates on loans to compensate for the loss of purchasing power.
The bond market: Mortgage lenders often use long-term bond yields, like the 10-Year Treasury, as a benchmark to set interest rates on home loans. When yields rise, mortgage rates typically increase.
Geopolitical events: World events, such as elections, pandemics or economic crises, can also affect home loan rates, particularly when global financial markets face uncertainty.
Other economic factors: The bond market, employment data, investor confidence and housing market trends, such as supply and demand, can also affect the direction of mortgage rates.
Calculate your monthly mortgage payment
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
How to find the best mortgage rates
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
Average mortgage rates edged higher yesterday. Although the change was negligible, it was enough to return them to their recent high, first reached last Thursday. However, they’re still way lower than the near-8% levels seen as recently as last October.
Earlier this morning, markets were signaling that mortgage rates today might barely move. However, these early mini-trends often switch direction or speed as the hours pass.
Current mortgage and refinance rates
Find your lowest rate. Start here
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.36%
7.37%
+0.01
Conventional 15-year fixed
6.76%
6.79%
Unchanged
Conventional 20-year fixed
7.06%
7.09%
Unchanged
Conventional 10-year fixed
6.65%
6.68%
-0.01
30-year fixed FHA
6.42%
7.11%
+0.03
30-year fixed VA
6.71%
6.83%
-0.01
5/1 ARM Conventional
6.18%
7.32%
-0.01
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
Many investors now expect the Federal Reserve to implement its first cut in general interest rates in June. And to make only three modest cuts during 2024.
That’s very different from their expectations at the start of this year. Then, they thought the first cut would be in March followed by five more before Dec. 31.
It’s this shift in expectations, from the optimistic to the realistic, that largely explains why mortgage rates have been moving higher in recent weeks. And it’s my top reason for now thinking that mortgage rates probably won’t begin to trend consistently lower until well into the second (April-June) quarter.
So, for now, my personal rate lock recommendations are:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes held steady 4.30%. (Neutral for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices climbed to $79.34 from $78.19 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices inched down to $2,042 from $2,044 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — increased to 79 from 76 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to hold steady or close to steady. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
Today
This morning brought the second reading (of three) of gross domestic product (GDP) during the fourth quarter of last year. And it will likely hardly affect mortgage rates.
Today’s figure showed growth that quarter at 3.2%. Markets had been expecting it to be unchanged from its first reading at 3.3%. And they’d already priced that figure into mortgage rates.
Ten-year Treasury notes edged lower on the news. But mortgage rates didn’t immediately follow, and the difference between the actual figure and market expectations may not be enough to change them.
Tomorrow
We’re due January’s personal consumption expenditures (PCE) price index tomorrow. This is the Federal Reserve’s favorite gauge of inflation. So it certainly has the potential to move markets and mortgage rates, not least because it could influence decisions about the timing and scope of the Fed’s future cuts in general interest rates.
Tomorrow brings four key figures: two for the all-items PCE price index and two for the “core” PCE price index. The core figure is the all-items one after volatile food and energy prices have been stripped out, something that supposedly reveals underlying inflation. The Fed focuses on core figures.
There are two figures for each of these indexes. The first shows how prices moved in the month of January. And the second is the year-over-year (YOY) number, which shows how the same prices moved between Feb. 1, 2023 and Jan. 31, 2024.
Tomorrow’s inflation and other data
Here are what markets are expecting tomorrow (with December’s actual figures in brackets):
January all-items PCE price index — 0.3% (0.2 % in December)
January core PCE price index —0.4% (0.2% in December)
YOY all-items PCE price index — 2.4% (2.6 % in December)
YOY core PCE price index —2.8% (2.8% in December)
You can see that markets are expecting a small increase in most of these measures of inflation. And, because they’re expecting them, they’ll have already priced those into mortgage rates. So, if the figures come in as forecast, mortgage rates might barely move.
However, higher-than-expected figures could push those rates upward. Conversely, lower-than-expected ones could drag them downward.
Other economic reports due tomorrow rarely move mortgage rates far or for long, especially when they’re overshadowed by a major report like the PCE price index.
Ten senior Fed officials have speaking engagements tomorrow and on Friday, all after tomorrow’s report. And those could change mortgage rates if enough of them say things that cheer up or depress investors. But we can only wait to hear their remarks.
Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.
Recent trends
According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.
Freddie’s Feb. 22 report put that same weekly average at 6.90% up from the previous week’s 6.77%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the four quarters of 2024 (Q1/24, Q2/24 Q3/24 and Q4/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Feb. 12 and the MBA’s on Feb. 20.
Forecaster
Q1/24
Q2/24
Q3/24
Q4/24
Fannie Mae
6.5%
6.3%
6.1%
5.9%
MBA
6.9%
6.6%
6.3%
6.1%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates jumped up last week following the release of some hotter-than-expected inflation data. Because the economy is still so strong, it’s possible that the Federal Reserve could keep the federal funds rate higher for longer, which would likely keep mortgage rates elevated as well.
Currently, average 30-year mortgage rates are around 30 basis points up from January’s average, according to Zillow data.
Mortgage rates are expected to go down this year, but they likely won’t start falling until we get more data showing that inflation is continuing to slow. Once it looks clearer that inflation is coming down to the Fed’s 2% target, mortgage rates should ease.
Mortgage rates don’t directly follow the federal funds rate, but they’re often pushed up or down based on how investors expect Fed moves to impact the broader economy.
In a speech given at the National Association for Business Economics last Friday, San Francisco Fed President Mary Daly said that while the Fed has made a lot of progress in bringing inflation down, it needs “more time and data” to be sure that price growth will continue to slow.
“We will need to resist the temptation to act quickly when patience is needed and be prepared to respond agilely as the economy evolves,” Daly said.
Last week, the Consumer Price Index and the Producer Price Index, two popular measures of inflation, both came in hotter than forecasts expected. Markets took this as a sign that we may need to wait longer for the Fed to start cutting rates, and mortgage rates trended up as a result.
At the moment, investors believe the Fed might start cutting rates at its June meeting, according to the CME FedWatch Tool. But whether this happens depends on the path inflation takes over the next few months.
Mortgage Rates Today
Mortgage type
Average rate today
This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on Zillow
Mortgage Refinance Rates Today
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
$1,161Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
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.
30-Year Fixed Mortgage Rates
This week’s average 30-year fixed mortgage rate is 6.77%, according to Freddie Mac. This is a 13-basis-point increase from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates inched down to 6.12% last week, according to Freddie Mac data. This is a 22-point increase since the week before.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve has increased the federal funds rate dramatically to try to slow economic growth and get inflation under control. So far, inflation has slowed significantly, but it’s still a bit above the Fed’s 2% target rate.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
The Fed has indicated that it’s likely done hiking rates and that it could start cutting soon. This will likely allow mortgage rates to trend down later this year.
When Will Mortgage Rates Go Down?
Mortgage rates increased dramatically over the last two years, but they’ve been falling in recent months, and are expected to drop further this year.
In January 2024, the Consumer Price Index rose 3.1% year-over-year. Inflation has slowed significantly since it peaked last year, which is good news for mortgage rates.
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 be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
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. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.
February 22, 2024 at 9:50 AM
While mortgage rates are relatively steady from yesterday’s numbers, overall averages are higher than they were last week. 30-year-fixed mortgages are 7.28%, which is one basis point lower than yesterday, but overall higher than it has been since early December 2023. 15-year fixed loan terms also increased, landing at 6.70%, while 30-year fixed refinance rates dropped slightly, hitting 7.28%. Predictions of a bumpy road for potential homebuyers seem to be a reality now, as rates are not falling as quickly as hoped. An overall downward trend is expected, but as of today, Wednesday, February 22, 2024, here’s where the numbers stand.
30-year fixed rates are 7.28%
15-year fixed rates are 6.70%
5/1 adjustable rate mortgages are 6.16%
30-year fixed refinance rates are 7.27%
The unchanged interest rates by the Federal Reserve have mostly positively impacted mortgage rates. Inflation has slowed in recent months, and market conditions are favorable with more student loan forgiveness announced today. Fed governor Christopher Waller believes the 2% inflation target rate is on the horizon. While the Fed rate does not determine mortgage rates, it sets benchmarks and impacts other rates, like mortgages.
Current Mortgage Rates for February 22, 2024
The National Association of Realtors does expect mortgage rates to steady in the 6% range by year’s end, but it will take a lot of ups and downs to arrive there ultimately. The Fed has a firm 2% inflation rate goal and with favorable economic reports on the job market, it’s unlikely they will cut rates until that goal becomes more of a reality. The latest announcement from the Fed kept rates steady again, signaling things are on the right track and hopeful homebuyers may have a more favorable market in 2024.
Daily Mortgage Rate Frequently Asked Questions
What is a mortgage rate? The rate of interest paid by the borrower to a lender for the length of a loan term. There are two types of rates: fixed and variable. Fixed remains the same and variable rates will fluctuate based on market conditions after a certain amount of time.
What are mortgage lenders? They are financial institutions that loan money to homebuyers. They are different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, conversing directly with borrowers and sending monthly statements.
What does it mean to refinance a mortgage? This is essentially trading in your current mortgage to another lender for more favorable rates and/or terms for your current loan. The new lender pays off your old mortgage and you then owe the new lender a monthly payment.
What factors influence mortgage rates? Mortgage rates are impacted by many factors, including inflation rates, economic conditions, housing-market trends, and the Federal Reserve’s policies. Lenders will also consider your credit score, down payment amount and other terms of the loan you’re requesting, like 30-year or 15-year offers.
How do I get the best mortgage rate? The best way to secure a good mortgage rate is to maintain a good credit score, have a stable income, shop around and research lenders, as well as understand and consider different types of loan options that are most suitable for your life and income. In some cases, increasing the down payment amount can result in better rates, too.
What is the difference between a fixed or adjustable-rate mortgage (ARM)? Fixed-rate mortgages offer a consistent interest rate throughout the period of the loan, whereas ARMs will typically start with a lower fixed rate for an agreed-upon time frame (e.g., 5-year ARM would have a fixed rate for the first 5 years) but will adjust to a variable interest rate based on market conditions for the remainder of the loan term. So, you could wind up paying more or less than your initial rate. Choosing between them depends on individual financial goals and risk tolerance.
When is the best time to lock in a mortgage rate? Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan. Market conditions will impact the rates offered, so it’s important to pay attention to the changes.
How does the Federal Reserve impact mortgage rates? The Federal Reserve’s changes to rates for federal funds can influence short-term and long-term interest rates, which indirectly impacts mortgage rates, but it is an important distinction to know that mortgage rates are not directly determined by the Fed.
Can I negotiate my mortgage rate? Lenders set their rates using many factors so there may not be room to negotiate. You can, however, discuss options for reducing costs in other ways with your potential vendors.
What is the average mortgage rate in the US? Mortgage rates fluctuate and can vary based on loan terms, economic conditions, and individual qualifications. Checking current rates from different lenders will give you the best sense of rates each day.
What are the current mortgage rate loan types?
30-Year Fixed Rate
20-Year Fixed Rate
15-Year Fixed Rate
10-Year Fixed Rate
7-Year ARM
5-Year ARM
3-Year ARM
Current refinance mortgage rates for February 2024