Mortgage Rates Today, Friday, September 12: A Little Higher

Yes, mortgage interest rates are slightly higher today compared to yesterday.

The average interest rate on a 30-year, fixed-rate mortgage is now at 6.5% APR, as reported by Zillow to BW. This is an increase of three basis points from yesterday but a decrease of six basis points from last week. Keep in mind that a basis point is equal to one one-hundredth of a percentage point.

If you are closely monitoring mortgage rates in hopes of a decrease, don’t lose hope. Lenders constantly adjust their rates throughout the day, responding quickly to any news or market changes. It’s important to look at the overall trend rather than focusing on daily fluctuations.

While the economy operates around the clock, markets are closed on weekends. Any rates you see on a Friday are unlikely to change significantly until the following Monday.

Mortgage rates are constantly fluctuating, influenced by various factors such as inflation reports, job numbers, Federal Reserve meetings, and global events. Even small changes in the bond market can impact mortgage rates.

The BW team is keeping an eye on the upcoming Federal Reserve monetary policy committee meeting scheduled for September 16-17. The Fed is expected to lower the overnight lending rate to stimulate job growth, indicating a greater focus on employment rather than inflation. If inflation were a major concern, the Fed would likely leave the federal funds rate unchanged.

There is no one-size-fits-all answer to when to start house hunting. The key is to determine if you can comfortably afford a mortgage at current rates.

If the answer is yes, don’t fret too much about potential rate drops in the future. You can always refinance later on. Focus on getting preapproved, comparing lender offers, and figuring out a monthly payment that aligns with your budget.

Utilize BW’s affordability calculator to estimate your monthly payment. If buying a new home isn’t feasible right now, work on paying off existing debts and building your down payment savings. Not only will this improve your financial profile for a future mortgage, but it can also help you secure a better interest rate down the line.

If you have a rate quote that you’re satisfied with, consider locking it in, especially if your lender offers a float-down option. This allows you to take advantage of a lower rate if the market shifts during your lock period.

Rate locks shield you from rate increases while your loan is being processed. Given the market’s volatility, having that peace of mind can be invaluable.

Consider refinancing 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 recoup the closing costs. With rates currently where they are, it might be worth looking into refinancing if your current rate is 7% or higher.

Think about your objectives: Do you want to lower your monthly payment, shorten your loan term, or tap into your home equity? For instance, you might be willing to accept a higher rate for a cash-out refinance than for a rate-and-term refinance, as long as the overall costs are lower than if you were to keep your original mortgage and add a HELOC or home equity loan.

If you’re aiming for a lower rate, use BW’s refinance calculator to estimate potential savings and understand the break-even point for refinancing costs.

The advertised rate is typically a sample rate for a borrower with excellent credit, a sizable down payment, and payment of mortgage points. This may not align with every borrower’s specific circumstances.

In addition to external market factors, your personalized quote is influenced by your location, property type, and overall financial profile. Even individuals with similar credit scores can receive different rates based on their financial situation.

There is a possibility, but keep in mind that even personalized rate quotes can change until you lock in. Lenders adjust pricing multiple times a day in response to market fluctuations.