Mortgage interest rates have slightly decreased today, although the dip is not significant. The average interest rate for a 30-year fixed-rate mortgage is now at 6.11% APR, which is five basis points lower than yesterday and remains unchanged from last week. This subtle shift may not have a major impact on the market, but for those in the process of buying a home or considering refinancing, it could signal a good time to start monitoring rates more closely. Even if rates are not decreasing daily, a downward trend may provide the confidence needed to make a move.
Average mortgage rates, last 30 days
Watch: How will December’s Fed meeting affect mortgage rates?
š When will mortgage rates drop?
Mortgage rates are constantly changing, influenced by various factors such as inflation reports, job numbers, Federal Reserve meetings, and global news. Even minor fluctuations in the bond market can impact mortgage rates significantly.
As the Federal Reserve prepares for its upcoming meeting, uncertainty prevails due to the recent government shutdown affecting data collection and conflicting views among Fed governors regarding rate adjustments. While some indicators suggest a rate cut might be imminent, others argue for caution.
Recent economic data, including lackluster employment figures and steady inflation rates, have added to the debate. The decision on whether to cut rates will likely be influenced by the overall health of the labor market and the Fed’s projections for economic growth.
While the Fed’s decision may not have a direct impact on mortgage rates, additional information expected to be released could lead to market movements. Key events to watch include Federal Reserve Chair Jerome Powell’s press conference and the release of the Summary of Economic Projections for the upcoming year.
š Should I refinance?
If current rates are at least 0.5 to 0.75 percentage points lower than your existing rate, refinancing could be a viable option, especially if you plan to stay in your home long enough to recoup closing costs. With rates where they are now, considering a refinance when your rate is around 6.61% or higher might be beneficial.
When contemplating a refinance, it’s essential to evaluate your objectives. Whether you aim to reduce monthly payments, shorten the loan term, or leverage home equity, understanding your goals will help determine the best refinancing option for your financial situation.
Before making a decision, utilize BW’s refinance calculator to estimate savings and assess the time needed to recover refinancing costs.
Timing is crucial when it comes to refinancing, and while waiting for lower rates is tempting, ensuring you can comfortably afford a mortgage at current rates is paramount. Getting preapproved, comparing lender offers, and determining a monthly payment that aligns with your budget are key steps in the refinancing process.
BW’s affordability calculator can assist in estimating potential monthly payments and planning for future homeownership. If buying a new home is not feasible at the moment, focusing on debt reduction and saving for a down payment can improve your financial standing and increase your chances of securing a better interest rate in the future.
š Should I lock my rate?
If you have received a rate quote that meets your expectations, consider locking in your mortgage rate, especially if your lender offers a float-down option. Rate locks protect you from rate increases during the loan processing period and provide peace of mind amid market fluctuations.
š¤ Nerdy Reminder: Mortgage rates can fluctuate daily and even hourly. If you are satisfied with the terms offered, committing to a rate is a prudent decision.
š§ Why is the rate I saw online different from the quote I got?
The advertised rate is usually a sample rate for borrowers with ideal credit scores, substantial down payments, and willingness to pay mortgage points. Individualized quotes take into account various factors, including location, property type, and the borrower’s overall financial profile.
Even individuals with similar credit scores may receive different rates based on their unique financial circumstances.
š If I apply now, can I get the rate I saw today?
While it is possible to secure the rate you viewed initially, personalized rate quotes can fluctuate until you lock in a specific rate. Lenders adjust pricing multiple times a day in response to market changes, so it’s essential to stay informed and act promptly when ready to commit.