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Mortgage rates down for the most part this week, though current mortgage refinance rates have inched up on a few different terms compared to a week ago. But in spite of some fluctuations, rates are down dramatically from last month.
Average 30-year mortgage rates are continuing to inch down closer to 6%, and they’re currently the lowest they’ve been since spring 2023.
Most experts believe that mortgage rates will continue to go down in 2024 as the economy continues to normalize and the Federal Reserve is able to start lowering the federal funds rate.
The Fed can impact mortgage rates indirectly through changes to the federal funds rate, and the central bank has indicated it will likely start cutting this rate next year. This will take a lot of the upward pressure off of mortgage rates, allowing them to ease. After watching mortgage rates skyrocket over the last couple of years, hopeful homebuyers can finally look forward to improved mortgage affordability in the new year.
Current Mortgage Rates
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Current Refinance Rates
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
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Your estimated monthly payment
- 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
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.16%)
The current average 30-year fixed mortgage rate is 6.15%, down 16 basis points since this time last week. This rate is down significantly compared to a month ago, when it was 6.93%.
At 6.15%, you’ll pay $609 monthly toward principal and interest for every $100,000 you borrow.
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.
20-Year Fixed Mortgage Rates Drop (-0.21%)
The average 20-year fixed mortgage rate is also down a bit from last week, and is sitting at 5.71%. This time last month, the rate was 6.57%.
With a 5.71% rate on a 20-year term, your monthly payment will be $700 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Inch Down (-0.09%)
The average 15-year mortgage rate is 5.44%, just a few points down from from last week. It’s now much lower compared to this time last month, when it was 6.32%.
With a 5.44% rate on a 15-year term, you’ll pay $814 each month toward principal and interest for every $100,000 borrowed.
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.
7/1 ARM Rates Creep Up (+0.06%)
The 7/1 adjustable mortgage rate is up six points from a week ago, currently at 6.74%. But it’s down compared to this time last month, when it was at 6.95%.
At 6.74%, your monthly payment would be $648 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Fall Half a Percentage Point (-0.53%)
The average 5/1 ARM rate is 6.17%, a 53-point drop from last week. It’s also lower than it was a month ago, when it was 7.25%.
Here’s how a 6.17% rate would affect you for the first five years: You’d pay $611 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Essentially Flat (-0.02%)
The average 30-year FHA interest rate is 5.67% today, which is down just two basis points from this time last week. This rate was 6.02% a month ago.
At 5.67%, you would pay $579 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Go Down (-0.19%)
The current VA mortgage rate is 5.45%, 19 basis points down from this time last week. This rate was 6.11% a month ago.
With a 5.45% rate, your monthly payment would be $565 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Go Up (+0.10%)
The average 30-year refinance rate is 6.33%, just 10 basis points higher than last week. But it’s down quite a bit compared to a month ago, when it was 7.17%.
Here’s how a 6.33% rate would affect your monthly payments: You’d pay $621 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Inch Up (+0.08%)
The current 20-year fixed refinance rate is 5.89%, which is just eight basis points up compared to a week ago. This rate was 6.93% this time last month.
A 5.89% rate on a 20-year term will result in a $710 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Increase (+0.26%)
The average 15-year fixed refinance rate is 6.00%, which is up 26 points compared to last week. This rate is lower compared to this time a month ago, when it was at 6.78%.
A 6.00% rate on a 15-year term means you’ll pay $844 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Decrease (-0.44%)
The average 7/1 ARM refinance rate is 6.10%, down from where it was last week. A month ago, it was much higher at 7.24%.
Refinancing into a 7/1 ARM with a 6.10% rate means your monthly payment toward principal and interest will be $606 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Tick Down (-0.27%)
The 5/1 ARM refinance rate is 6.30%, 27 basis points down from last week. It’s also down compared to this time last month, when it was 7.28%.
A 6.30% rate will result in a monthly payment of $619 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Drop (-0.23%)
The 30-year FHA refinance rate is 5.53%, which down a bit compared to last week. This rate was 6.09% this time last month.
A 5.53% refinance rate would lead to a $570 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Increase Very Slightly (+0.07%)
The average 30-year VA refinance rate is 5.62%, which is seven basis points higher than it was last week. This rate was 6.50% a month ago.
At 5.62%, your new monthly payment would be $575 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they’re higher than they were in December 2022.
But rates have started trending down in recent weeks, and we should continue to see them fall in 2024 and 2025.
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 further. 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.
Source: businessinsider.com