Unfortunately, today is not the day to find lower mortgage interest rates.
The average interest rate on a 30-year, fixed-rate mortgage has risen to 6.43% APR, based on data provided to BW by Zillow. This represents a 24 basis point increase from yesterday and remains the same as last week. (Refer to our chart below for more detailed information.) A basis point is equivalent to one one-hundredth of a percentage point.
It’s important to note that mortgage rates are constantly fluctuating, and tracking them on a daily basis can show significant volatility. Taking a step back and analyzing a longer period of rate data, such as a month, can offer a better understanding of the overall trend.
Average mortgage rates over the last 30 days
📉 When can we expect mortgage rates to decrease?
Mortgage rates are constantly in flux due to various factors such as reactions to new inflation reports, job numbers, Fed meetings, global news, and more. Even minor changes in the bond market can impact mortgage pricing.
Typically, we are eagerly anticipating significant data releases. However, due to the government shutdown, crucial information like the CPI report scheduled for Oct. 15 is currently uncertain. We have already missed the jobs report that was supposed to be released on Oct. 3. These official numbers play a key role in future projections as they offer insights into the likely actions of the Federal Reserve, which heavily relies on data for decision-making.
Adding to the pressure, the Federal Reserve’s upcoming meeting at the end of the month is crucial, especially after the rate cut in September. We will closely monitor the markets, as will the Fed.
🏡 Is it time to start looking for a home?
There is no perfect time to begin the home shopping process; what truly matters is whether you can comfortably manage a mortgage at today’s rates.
If the answer is yes, don’t fret about potentially missing out on lower rates in the future; refinancing is always an option. Focus on getting preapproved, comparing offers from different lenders, and determining a monthly payment that aligns with your budget.
Utilize BW’s affordability calculator to estimate your monthly payment. If purchasing a new home isn’t feasible at the moment, there are steps you can take to enhance your buyer profile. Use this time to reduce existing debts and bolster your down payment savings. Not only will this free up more cash for future mortgage payments, but it can also lead to a better interest rate when you’re ready to make a purchase.
🔒 Is it advisable to lock in my rate?
If you have received a quote that meets your expectations, it may be wise to consider locking in your mortgage rate, especially if your lender offers a float-down option. A float-down allows you to secure a better rate if the market experiences a decline during your lock-in period.
Rate locks shield you from potential increases while your loan is being processed, providing peace of mind amidst the market’s constant fluctuations.
🤓 Nerdy Tip: Mortgage rates are subject to daily and even hourly changes. If you are content with your current offer, it is acceptable to proceed with the commitment.
🔁 Is refinancing a viable option?
Refinancing could be beneficial if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate (and if you plan to stay in your home long enough to offset closing costs).
Given the current rate environment, it may be prudent to contemplate refinancing if your existing rate is approximately 6.93% or higher.
Consider your objectives: Are you aiming to reduce your monthly payment, shorten your loan term, or convert home equity into cash? For instance, you might be willing to accept a higher rate for a cash-out refinance as long as the overall costs are lower than retaining your original mortgage and adding a HELOC or home equity loan.
If you are seeking a lower rate, utilize BW’s refinance calculator to estimate potential savings and comprehend the time needed to recoup refinancing expenses.
🧐 Why does the rate I viewed online differ from the quote I received?
The advertised rate is a generic figure usually meant for borrowers with impeccable credit, substantial down payments, and a willingness to pay for mortgage points. This may not align with every individual’s financial situation.
In addition to external market factors, your custom quote is influenced by factors like your:
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Location and type of property
Even individuals with similar credit scores may receive different rates based on their overall financial profiles.
👀 If I apply now, can I secure the rate I saw today?
Possibly, but even personalized rate quotes are subject to change until you finalize the lock-in.