Unlock Today’s Mortgage Rates: December 27, 2024 Secrets Revealed!
Today’s Mortgage Rates
This morning, mortgage rates have taken a turn upward, continuing a recent trend. But don’t despair just yet! Today’s market data brings a glimmer of hope for borrowers, potentially applying downward pressure on rates in the short term. So, let’s dive into the details!
Current Mortgage and Refinance Rates
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| Program | Mortgage Rate | APR* | Change |
|---|---|---|---|
| Conventional 30-Year Fixed | 6.985% | 7.032% | -0.02 |
| Conventional 20-Year Fixed | 6.793% | 6.85% | -0.09 |
| Conventional 15-Year Fixed | 6.352% | 6.426% | +0.06 |
| Conventional 10-Year Fixed | 6.213% | 6.292% | +0.13 |
| 30-Year Fixed FHA | 6.858% | 6.905% | -0.71 |
| 30-Year Fixed VA | 6.732% | 6.777% | -0.71 |
| 5/1 ARM Conventional | 6.496% | 7.186% | +0.33 |
| Rates are provided by our partner network and may not reflect current market conditions. Your individual rate may vary. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here. | |||
>Related: 7 Tips to Secure the Best Refinance Rate
30-Year Fixed Rate Mortgage
As of today, the average rate for a 30-year fixed mortgage has reached 6.99%. This type of mortgage offers borrowers a stable, long-term option, but it comes at a cost: you’ll pay more interest over the life of the loan compared to shorter loans. Remember, the historical average for this mortgage peaked at a staggering 8.89% back in December 1994.
15-Year Fixed Rate Mortgage
Today’s average rate for a 15-year fixed mortgage is now at 6.35%. This loan provides a shorter repayment term with less interest, but be prepared for higher monthly payments. The lowest recorded rate for this mortgage was an astonishing 2.10% in July 2021.
5/1 Adjustable-Rate Mortgage
This morning, the average for the 5/1 adjustable-rate mortgage stands at 6.5%. ARMs usually start with lower initial rates, which adjust after the first five years based on market conditions. For those planning to move or refinance within a few years, this can be an appealing option.
Market Data Affecting Today’s Mortgage Rates
Let’s look at how the current market landscape is shaping our mortgage rates. Here’s a snapshot of today’s key indicators:
- The yield on 10-year Treasury notes has decreased to 4.588% from 4.638%. (This is good news for mortgage rates!) Mortgage rates often closely follow these yields.
- Major stock indexes have all dipped this morning. (Another positive for mortgage rates!) When stocks fall, bond prices can rise, which typically leads to lower mortgage rates.
- Oil prices have fallen to $70.11 from $70.69 a barrel. (Good for mortgage rates!) Lower energy prices help combat inflation and signal a slowing economy.
- Gold prices have decreased to $2,631 from $2,643 an ounce. (Neutral, but not ideal for mortgage rates.) Rising gold prices usually indicate economic worries, which can benefit mortgage rates.
- The CNN Business Fear & Greed index has dropped to 33 from 34 out of 100. (Favorable for mortgage rates!) A lower index suggests that investors are more cautious, which typically supports bond prices and keeps rates down.
*Note: A shift of less than $20 in gold prices or 40 cents in oil prices usually doesn’t impact mortgage rates significantly.
Caveats about Markets and Rates
In the aftermath of the pandemic and ongoing global uncertainties, predicting mortgage rates has grown more complex. While we make daily forecasts with reasonable accuracy, recent events have made it difficult to rely on past trends. Today’s changes could see rates nudge upward or remain stable, so be prepared for potential “intraday swings” as the market shifts!
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What’s Driving Mortgage Rates Today?
This Week
The key economic report for today is the Advance Economic Indicators Report, which reveals insights into international trade and inventory levels. The trade deficit hit $102.9 billion in November, marking a 4.7% increase from October. Meanwhile, retail inventories saw a slight rise of 0.3% to $827.5 billion.
Recent Trends
According to a recent report from Freddie Mac, the weekly average for a 30-year fixed mortgage rate is currently at 6.85%, an increase of 13 basis points from last week. Keep in mind, this data lags behind the market, making it useful primarily for spotting trends.
Expert Forecasts for Mortgage Rates
Looking ahead, major institutions like Fannie Mae and the Mortgage Bankers Association are closely monitoring the economy’s trajectory and its impact on housing and mortgage rates. Here’s a peek at their forecasts for Q4 2024 and the first three quarters of 2025:
| Forecaster | Q4/24 | Q1/25 | Q2/25 | Q3/25 |
| Fannie Mae | 6.0% | 5.9% | 5.7% | 5.6% |
| MBA | 6.3% | 6.2% | 6.0% | 5.9% |
In its recent Mortgage Market Outlook, Freddie Mac indicated expectations of continued economic growth, albeit at a slower pace, with inflation on a downward trend. The forecast includes potential cuts to the federal funds rate in the coming years.
However, given the unpredictable nature of the economic landscape, these forecasts come with a degree of uncertainty. While history provides a guide, it’s always wise to approach these predictions with caution.
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Mortgage Rate Methodology
We gather rates from a network of mortgage lenders daily to provide a comprehensive overview of the market. By averaging these rates, we aim to give you a reliable snapshot of what to expect. Each loan type is evaluated in a consistent manner, ensuring you have the most accurate information available.
Current Mortgage Rates Methodology
We compile current mortgage rates from a wide array of lenders, reflecting various borrower profiles based on loan type. This helps to create a clear picture of what rates are available today. To view full loan assumptions, click here.
Today’s Mortgage Rates FAQ
A good mortgage rate aligns with current market trends and your financial situation. As of December 26, 2024, the average rate for a 30-year fixed mortgage is 6.85%, with the 15-year fixed averaging 6%.
Mortgage rates depend on several factors, including the economy, your credit score, the loan term, and the overall housing market. Lenders also factor in the loan amount and down payment, along with whether it’s a conventional or government-backed loan.
To secure the lowest mortgage rates, it’s vital to shop around. Explore offerings from various lenders—banks, credit unions, and online providers—collecting multiple quotes to pinpoint the best rates and terms tailored to your financial goals.
Choosing between fixed and adjustable-rate mortgages hinges on your financial goals and risk tolerance. Fixed-rate mortgages provide stability for long-term homeowners, while ARMs can offer lower initial rates for those planning to move or refinance before adjustments kick in.
While forecasts suggest a gradual decrease in rates through 2024 and 2025, short-term fluctuations are possible. If your closing date is approaching, locking in your rate can offer peace of mind, but trust your judgment and risk tolerance when deciding.
