Mortgage rates have decreased today due to positive developments: The U.S. and Iran are making progress in their discussions to end the conflict.
The average interest rate on a 30-year fixed-rate mortgage is now at 6.4% APR, as reported by Zillow to BW. This is a six basis points drop from yesterday and five basis points lower than a week ago. (Refer to the chart below for more details.) A basis point equals one one-hundredth of a percentage point.
Average mortgage rates, last 30 days
🤓 From the Nerds: Kate on Rates
📈 What influences mortgage rates?
This week, the progress in peace talks with Iran is being closely monitored. Inflation was already high before the war began on Feb. 28, and disruptions in oil shipments have added to inflationary pressures. While a peace agreement may not immediately solve inflation, it could help alleviate some of the existing pressures.
On Thursday, the Personal Consumption Expenditures Price Index (PCE) from the Bureau of Economic Analysis, which includes the Federal Reserve’s preferred inflation measure, will be released. This data is crucial ahead of the next Fed meeting, the first under incoming Chair Kevin Warsh.
If the PCE shows a resurgence in inflation, it could lead to concerns at the upcoming Fed meeting. The possibility of rate hikes not being completely ruled out has been raised by some officials at the Fed’s April meeting. Even a hint of a rate hike could cause mortgage rates to rise.
Refinancing may be a good option if today’s rates are significantly lower than your current rate, typically by 0.5 to 0.75 of a percentage point (and if you plan to stay in your home long enough to recoup closing costs).
Given the current rates, considering a refinance could be beneficial if your current rate is at or above 6.9%.
🏡 Should I start shopping for a home?
There isn’t a definitive “right” time to begin house hunting; what matters is whether you can comfortably afford a mortgage at today’s rates.
🔒 Should I lock my rate?
Rate locks shield you from rate hikes during the loan processing period, providing peace of mind amidst market fluctuations.
🤓 Nerdy Reminder: Mortgage rates can change daily, even hourly. If you’re content with your current offer, committing to it is acceptable.
🧐 Why is the rate I saw online different from the quote I received?
If you are considering applying for a loan, keep in mind that the rate you see today may change until you lock it in. Lenders adjust their pricing multiple times a day in response to market fluctuations.
About the author:
Abby Badach Doyle has been writing about homeownership and mortgages for BW since 2022. Her work has been featured in various outlets, including The Associated Press, The Washington Post, and The Seattle Times. Abby is dedicated to providing practical advice and tools to help make the homebuying journey less stressful, especially for first-time buyers. She is also passionate about writing on innovative housing solutions and personal stories that highlight how homeownership fosters community and belonging.
Abby is based in Pittsburgh and when she’s not writing about personal finance, she enjoys playing music, raising chickens, and tending to her garden at her urban homestead.