Today saw a slight uptick in mortgage rates after a period of stability.
The average interest rate for a 30-year fixed-rate mortgage rose to 6.14% APR, based on data from Zillow provided to BW. This represents a 15 basis point increase from yesterday and a 24 basis point increase from a week ago. (Refer to the chart below for more details.) One basis point equals one one-hundredth of a percentage point.
It’s important to note that while rates have gone up today, it doesn’t necessarily indicate a trend towards higher rates. Taking a broader view, such as examining a graph showing at least a month’s worth of rate data, can provide insight into the overall direction.
Average mortgage rates, last 30 days
📉 When will mortgage rates drop?
Mortgage rates are constantly changing, influenced by reactions to various factors like new inflation reports, job numbers, Fed meetings, global news, and more. Even small shifts in the bond market can impact mortgage rates.
This week, attention is on the December jobs report set to be released on Friday.
The end of 2025 experienced challenges with missing and delayed federal economic data, leading to analysts relying on alternative sources and outdated figures to estimate the nation’s financial status. The start of 2026 brings timely data, offering economists a real-time view of employment numbers.
If the jobs report indicates a rise in unemployment for December, mortgage rates are likely to decrease further. Conversely, a drop in unemployment could lead to a slight rate increase. The Federal Reserve plays a role in this, as they may adjust borrowing rates based on unemployment trends to manage inflation.
In January of the prior year, President Trump announced intentions to increase tariffs on major trade partners, impacting the economy throughout 2025.
Currently, the focus is on plans for a U.S.-backed regime change in Venezuela. While the outcome remains uncertain, it highlights the ongoing influence of international relations on financial markets.
🔁 Should I refinance?
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 recoup closing costs).
Given the current rates, it might be worth considering a refinance if your existing rate is around 6.64% or higher.
Consider your objectives: Do you aim to reduce your monthly payment, shorten your loan term, or leverage home equity for 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 if you retained your original mortgage and opted for a HELOC or home equity loan.
If you seek a lower rate, use BW’s refinance calculator to estimate savings and gauge the time needed to recover refinancing costs.
The key is not to focus excessively on potentially missing out on lower rates in the future. If you can comfortably manage a mortgage at current rates, that’s what matters. You can always consider refinancing later. Prioritize getting preapproved, comparing lender offers, and determining a monthly payment that aligns with your budget.
BW’s affordability calculator can assist in estimating your potential monthly payment. If purchasing a new home isn’t immediate, focus on reducing existing debts and building your down payment savings. This not only enhances cash flow for future mortgage payments but can also lead to a better interest rate when you’re ready to buy.
🔒 Should I lock my rate?
If you have a rate quote that satisfies you, consider locking your mortgage rate, especially if your lender offers a float-down option. This feature allows you to benefit from a lower rate if the market shifts during your lock period.
Rate locks shield you from rate hikes while your loan is processed, providing peace of mind amid market fluctuations.
🤓 Nerdy Reminder: Rates are subject to daily, even hourly changes. If you’re content with your current offer, feel confident in committing to it.
🧐 Why is the rate I viewed online different from the quote I received?
The advertised rate serves as a general rate — typically for a borrower with excellent credit, making a substantial down payment, and paying for mortgage points. This won’t align with every buyer’s specific situation.
In addition to external market influences, your personalized quote is based on factors like your:
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Location and property type
Even with similar credit scores, two individuals may receive different rates based on their overall financial profiles.
👀 If I apply now, can I get the rate I viewed today?
Possibly — however, even personalized rate quotes are subject to change until you lock. Lenders adjust pricing multiple times a day in response to market movements.