This page includes information about these cards, currently unavailable on BW. The information has been collected by BW and has not been provided or reviewed by the card issuer.
It feels like everyone’s breathing a tentative sigh of relief this morning, and that includes mortgage rates. Rates are down a smidge, but given how markets are reacting (relief that’s not so much tentative as exuberant), we may see mortgage rates go lower.
The average interest rate on a 30-year, fixed-rate mortgage ticked down to 6.19% APR, according to rates provided to BW by Zillow. This is four basis points lower than yesterday and 15 basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
What we’ll see from mortgage rates going forward will depend on the outlook both overseas and on the home front. For more, keep reading below the chart.
Average mortgage rates, last 30 days
📉 When will mortgage rates drop?
Even though the Fed does not set mortgage rates, its actions ripple out through the economy. We often see mortgage rates head higher or lower on expectations of action from the Federal Reserve. If it doesn’t look like the central bankers will be in a rate cutting mood — and for this month’s meeting, it most certainly does not — we shouldn’t expect downward pressure on mortgage rates.
“This labor market data is not showing any impact of the war in Iran, yet. Should the conflict continue, we will likely begin to see those effects on the labor market around May or June,” says Elizabeth Renter, BW Senior Economist.
“So this and the next jobs report will probably look like many of those in the recent past: mediocre — neither alarming nor impressive.”
This week we’re getting two major inflation reports — the Personal Consumption Expenditures Price Index (PCE) tomorrow and the Consumer Price Index (CPI) on Friday.
PCE is the Fed’s preferred inflation measure, but since the Bureau of Economic Analysis is still playing catch-up after last fall’s government shutdown, that data’s from February. At this point, February feels like ancient history. I couldn’t tell you what gas cost back then and honestly, I don’t want to remember.
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 could start considering a refi if your current rate is around 6.69% 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.
To improve your chances of securing a mortgage, focus on getting preapproved, comparing lender offers, and determining a monthly payment that fits your budget. BW’s affordability calculator can assist you in estimating your potential monthly payment. If purchasing a new home isn’t feasible at the moment, you can still enhance your buyer profile by paying off existing debts and increasing your down payment savings. This will not only increase your cash flow for future mortgage payments but also help you secure a better interest rate when you’re ready to buy.
If you have received a favorable mortgage quote, consider locking in your rate, especially if your lender offers a float-down option. Rate locks protect you from rate increases during the loan processing period, providing you with peace of mind amidst market fluctuations.
It’s important to note that advertised rates are typically sample rates for borrowers with excellent credit, substantial down payments, and who are willing to pay for mortgage points. Your personalized quote will vary based on factors such as credit score, financial profile, and other individual circumstances.
Even if you receive a personalized rate quote, it can still change until you lock it in, as lenders adjust pricing multiple times a day in response to market changes. Remember that rates can fluctuate daily, so if you’re satisfied with the deal you’ve been offered, don’t hesitate to commit.
About the author:
Kate Wood, a lending expert and certified financial health counselor, joined BW in 2019. With a background in sociology, Kate is passionate about addressing issues like homeownership inequality and higher education. She enjoys simplifying government programs and previously wrote about home remodeling and maintenance for This Old House.