Rate Rollercoaster: Discover What’s Rising and What’s Dropping!

Today’s mortgage rates are making waves! If you’re considering diving into homeownership, here’s the scoop: the 30-year fixed rate is steady at 6.45%, while the 15-year fixed rate has dipped just a smidge to 5.80%. Meanwhile, if you’re eyeing a 20-year fixed mortgage, brace yourself for an increase to 6.35%. And for those interested in an adjustable-rate mortgage (ARM), the 7/1 ARM has seen a significant drop to 6.53%.

In this fluctuating rate environment, it’s absolutely vital to shop around with multiple mortgage lenders to snag the best rates and fees. Explore various mortgage types and loan terms to discover which option fits your financial goals perfectly. The right choice can make all the difference!

Want to know more? Check out: How to get mortgage preapproval from a lender

Here’s a snapshot of today’s mortgage rates, based on the latest data:

• 30-year fixed: 6.45%

• 20-year fixed: 6.35%

• 15-year fixed: 5.80%

• 5/1 ARM: 6.59%

• 7/1 ARM: 6.53%

• 30-year VA: 5.87%

• 15-year VA: 5.44%

• 5/1 VA: 6.08%

• 30-year FHA: 5.58%

Remember, these figures represent national averages and are rounded to the nearest hundredth. Your local rates might be different!

Looking to save more? Discover: 5 strategies for getting the lowest mortgage rates

If you’re considering refinancing your mortgage, here are the current refinance rates you should know:

• 30-year fixed: 6.47%

• 20-year fixed: 6.44%

• 15-year fixed: 5.82%

• 5/1 ARM: 6.04%

• 7/1 ARM: 6.18%

• 30-year VA: 5.91%

• 15-year VA: 5.82%

• 5/1 VA: 5.49%

As always, these are averages rounded to the nearest hundredth. Just a heads-up: refinancing rates can often be higher than rates for purchasing a new home. Make sure to check with your lender for the best options!

Try our free mortgage calculator to see how different rates and terms impact your monthly payments. This tool also helps you factor in the home price and down payment—essential details for your financial planning!

Our calculator even includes estimates for homeowners insurance and property taxes, ensuring a more precise monthly payment estimate. If applicable, you can input costs for private mortgage insurance (PMI) and homeowners’ association dues. Knowing all the costs involved can save you from surprises down the road!

A 30-year fixed mortgage has two major perks: lower payments and predictable monthly costs.

By spreading your repayments over a longer timeline, your monthly bills stay manageable. Plus, unlike adjustable-rate mortgages, your rate remains unchanged, providing peace of mind against unexpected spikes. The only factors that may shift your monthly payment are your homeowners insurance and property taxes!

However, don’t forget that the higher the rate, the more you’ll pay in interest over the life of your loan. A 30-year fixed mortgage typically has a higher rate than shorter terms or introductory rates on ARMs, which means you could end up paying a lot more in the long run.

Conversely, a 15-year fixed mortgage offers lower rates, allowing you to pay off your home faster and save a ton on interest in the end. However, your monthly payments will be higher—so it’s all about what fits your budget!

Curious about the differences? Explore more: 15-year vs. 30-year mortgages

Looking into adjustable-rate mortgages? These loans can offer a lower initial rate for a set period, but be cautious as rates will adjust periodically after that period ends. A 5/1 ARM, for instance, locks in your rate for 5 years before it starts to fluctuate annually.

The upside? You’ll likely enjoy lower payments at the onset. Just remember that once the introductory period is over, your rate—and payments—could rise. If you expect to move before that happens, an ARM might be a smart choice.

Need more info? Check this out: Adjustable-rate vs. fixed-rate mortgage

Right now is a favorable time to step into the housing market compared to the frenzy of previous years. Mortgage rates are lower than they were last November, and the wild price surges we saw during the pandemic have cooled off significantly. If you’re ready to buy, seize this moment!

That said, rates have been on an upward trajectory since September, so if you’re not in a rush, you might consider waiting until 2025. But keep in mind that predictions show a gradual decrease, rather than a dramatic drop. Plus, if rates do slide down, expect increased competition and potentially higher prices due to demand.

Get the full picture: Which is more important, your home price or mortgage rate?

Currently, the national average for a 30-year mortgage stands at 6.45%, but keep in mind that local averages may differ—especially in high-cost cities.

Looking ahead, rates may not decrease much in 2024, but there’s speculation about potential drops in 2025, influenced largely by the economic landscape and upcoming policies.

Overall, while mortgage rates have seen a drop over the past year, the recent weeks have been a mixed bag, with some rates going up and others coming down. Stay informed to make the best decision for your financial future!

Just like when you purchased your home, obtaining a low mortgage refinance rate requires strategy! Focus on improving your credit score and lowering your debt-to-income ratio (DTI). Remember, refinancing to a shorter term can lead to a lower rate, even if it means higher monthly payments.