Unlock Today’s Mortgage Rates: December 3, 2024 Insights!
Today’s Mortgage Rates: What You Need to Know!
As we dive into December, mortgage rates are hovering below last week’s levels, making it an intriguing time for homebuyers and refinancers alike. It’s the perfect moment to seize opportunities in the housing market!
Current economic indicators and market dynamics are maintaining a steady influence on mortgage rates, providing a stable environment in the short term. Are you ready to explore your options?
Latest Mortgage and Refinance Rates
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| Program | Mortgage Rate | APR* | Change |
|---|---|---|---|
| Conventional 30-year fixed | 6.905% | 6.957% | Unchanged |
| Conventional 20-year fixed | 6.687% | 6.752% | Unchanged |
| Conventional 15-year fixed | 6.18% | 6.263% | Unchanged |
| Conventional 10-year fixed | 6.153% | 6.238% | Unchanged |
| 30-year fixed FHA | 6.659% | 6.702% | Unchanged |
| 30-year fixed VA | 6.646% | 6.687% | Unchanged |
| 5/1 ARM Conventional | 6.683% | 7.424% | Unchanged |
| Rates are supplied by our network partners and may not reflect the current market. Your rate could vary. Click here for a personalized rate quote. To understand our rate assumptions, see our rate assumptionshere. | |||
>Related: 7 Tips for Securing the Best Refinance Rate
30-Year Fixed Rate Mortgage
As of today, the average 30-year fixed mortgage rate stands at 6.91%. This popular loan option offers affordability but comes with a trade-off: more interest paid over the life of the loan compared to shorter-term mortgages.
Historical context? The 30-year fixed rate mortgage hit a historic low of 2.65% on January 7, 2021, and peaked at 8.89% on December 16, 1994.
15-Year Fixed Rate Mortgage
Today’s average for the 15-year fixed mortgage rate is 6.19%. This option allows for a quicker payoff with less interest accrued over time, but be prepared for steeper monthly payments.
Remember, this rate has seen lows of 2.1% on July 29, 2021, and highs of 18.63% on September 10, 1981.
5/1 Adjustable-Rate Mortgage (ARM)
The 5/1 ARM is averaging a competitive 6.52% today. These loans start with lower initial rates and adjust after five years based on market conditions. If you plan on selling or refinancing in the near term, this could be a smart choice!
Market Forces Shaping Today’s Mortgage Rates
Here’s a snapshot of the market landscape as of now, revealing the dynamics that could impact mortgage rates:
- 10-Year Treasury Yield: Rose to 4.215% from 4.21%. This typically signals a potential increase in mortgage rates.
- Stock Indexes: Mixed bag out there. When investors flock to stocks, bonds often take a hit, nudging yields—and mortgage rates—upward.
- Oil Prices: Climbed to $68.93 from $68.88 a barrel. This increase can lead to inflationary pressures, slightly negative for mortgage rates.
- Gold Prices: Dropped to $2,662 from $2,666 an ounce. Falling gold prices can signal economic worries, which usually isn’t great for mortgage rates.
- CNN Business Fear & Greed Index: Fell to 64 from 66. A less greedy market is often favorable for bond prices, indicating potential support for lower mortgage rates.
*Keep in mind, minor fluctuations in gold and oil prices may not significantly impact mortgage rates, so we focus on substantial changes only.
Navigating Market Uncertainties
In today’s unpredictable environment, predicting mortgage rates based on market data is more challenging than ever. We still analyze the data and offer insights daily, but remember: expect fluctuations and be prepared for the possibility of upward nudges in rates.
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What’s Influencing Mortgage Rates Today?
This Week’s Insights
Keep an eye out for insights from three Federal Reserve executives today. Their words could hint at potential rate cuts during the December meeting.
Also, the Job Openings and Labor Turnover Survey (JOLTS) report releases at 10 AM ET. If job openings exceed expectations, we could see upward pressure on mortgage rates.
Recent Trends
Freddie Mac’s latest report on November 27 indicated the average 30-year fixed mortgage rate at 6.81%, a slight dip from the previous week. While this data may lag, it’s valuable for spotting trends!
Expert Forecasts for Mortgage Rates
Looking ahead, Fannie Mae and the Mortgage Bankers Association (MBA) have economists monitoring the economy, housing sector, and mortgage rates closely. Here’s what they project for the final quarter of 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% |
According to Freddie Mac, they expect economic growth to continue, albeit at a slower pace. They predict inflation will trend lower, with further rate cuts anticipated in 2024 and 2025.
With so many variables at play, remember that these forecasts are more speculative than usual, and past accuracy hasn’t been stellar.
Time to make a move? Let us find the right mortgage for you!
Understanding Our Mortgage Rate Methodology
We gather daily mortgage rates based on selected criteria from a variety of lending partners. Our methodology combines these rates to provide an average for each loan type, giving you an accurate snapshot of the market. This approach helps you understand what rates you might expect to find.
Current Mortgage Rates Methodology
We receive daily updates on mortgage rates from a network of lenders offering home purchase and refinance loans. The rates displayed are based on sample borrower profiles that vary by loan type. For detailed loan assumptions, please see here.
FAQs on Today’s Mortgage Rates
A good mortgage rate corresponds to current market trends and your financial circumstances. As of November 27, 2024, the average rate for a 30-year fixed mortgage is 6.81%, while the 15-year fixed mortgage averages 6.1%.
Mortgage rates are shaped by multiple factors, including the economy, your credit score, loan term, and the housing market. Lenders will also consider the loan amount, down payment, and whether your loan is conventional or government-backed.
To find the lowest mortgage rates, it’s crucial to explore various lenders, such as banks, credit unions, and online providers. By comparing multiple quotes, you can identify the most competitive rates and terms suited to your financial goals.
The choice between fixed and adjustable-rate mortgages largely depends on your financial goals and risk tolerance. If you value stability and plan to stay in your home long-term, a fixed-rate mortgage may be ideal. Conversely, if you’re comfortable with some risk and plan to refinance before any adjustments, an adjustable-rate mortgage may be beneficial.
Many forecasts suggest a gradual decrease in mortgage rates throughout 2024 and 2025, with the 30-year fixed rate likely dipping below 6.5% by the fourth quarter. While short-term increases are possible, locking in your rate could provide stability if you’re closing soon. Trust your instincts regarding whether to float or lock your rate.
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