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It’s not exactly a pot of gold, but mortgage interest rates are a little lower today.
The average interest rate on a 30-year, fixed-rate mortgage ticked down to 6.13% APR, according to rates provided to BW by Zillow. This is nine basis points lower than yesterday but 22 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
While rates are lower today compared to yesterday, mortgage rates have generally been trending upward since the start of the war in Iran. The conflict sparked new inflation fears, with hikes in mortgage rates mirroring increasing oil prices. While borrowers enjoyed rates below 6% earlier this year, we likely won’t see that again until oil prices come down.
Average mortgage rates, last 30 days
📉 When will mortgage rates drop?
This week, all eyes are on the Federal Reserve. Central bankers at the Fed are scheduled to meet today and tomorrow, when they’re widely expected to keep the federal funds rate as-is in the face of economic uncertainty. (The federal funds rate indirectly influences mortgage rates.) The Fed is tasked with balancing inflation with the employment situation, which looks weaker than expected: February’s jobs report showed the U.S. lost 92,000 jobs last month, compared to a projected gain of 50,000.
Meanwhile, we got two major inflation reports last week. The Consumer Price Index (CPI) showed that inflation remained steady in February at 2.4%. The Personal Consumption Expenditures (CPE) — the Fed’s preferred measure — showed core inflation at 2.8% and signs of weaker consumer spending in January.
After attacks on ships in the Strait of Hormuz, a key oil shipping route, nervous markets have already sent oil prices surging. When oil supply drops, unemployment and inflation can go up — rippling through the economy to disrupt those steady near-6% mortgage rates we’d all gotten accustomed to since January.
Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).
With rates where they are right now, you may want to start considering a refi if your current rate is around 6.63% or higher.
🏡 Should I start shopping for a home?
There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.
🔒 Should I lock my rate?
Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.
🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay to commit.
🧐 Why is the rate I saw online different from the quote I got?
Not every buyer’s circumstances will align with the customized quote you receive. Market factors beyond your control play a role, as well as your individual financial profile. Even individuals with similar credit scores may end up with different rates based on their overall financial situation.
If you’re wondering if the rate you see today will still apply if you apply now, there’s a chance it could change until you lock it in. Lenders adjust pricing multiple times a day in response to market fluctuations.
Please note that the information provided in this article was sourced from reliable and reputable sources, including peer-reviewed studies, government websites, academic research, and interviews with industry experts. Our content is thoroughly fact-checked for accuracy and relevance. If you’d like to learn more about our editorial guidelines, feel free to explore further.
About the author:
Taylor Getler is a home and mortgages writer for BW. Her work has been featured in various outlets such as MarketWatch, Yahoo Finance, MSN, and Nasdaq. Taylor is passionate about promoting financial literacy and helping consumers make informed decisions about their finances.