Mortgage Rates Dip: Your Guide to Affordable Home Loans!
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| Current Best Rates for Home Purchases Across the Nation | ||
|---|---|---|
| Loan Type | New Purchase Rates | Daily Change |
| 30-Year Fixed | 6.75% | -0.04 |
| FHA 30-Year Fixed | 6.72% | No Change |
| VA 30-Year Fixed | 6.17% | -0.06 |
| 20-Year Fixed | 6.64% | -0.04 |
| 15-Year Fixed | 5.88% | -0.08 |
| FHA 15-Year Fixed | 6.40% | No Change |
| 10-Year Fixed | 6.00% | No Change |
| 7/6 ARM | 7.21% | -0.06 |
| 5/6 ARM | 7.25% | -0.07 |
| Jumbo 30-Year Fixed | 6.71% | -0.10 |
| Jumbo 15-Year Fixed | 6.65% | -0.17 |
| Jumbo 7/6 ARM | 7.05% | -0.12 |
| Jumbo 5/6 ARM | 7.25% | -0.06 |
| Data sourced through a trusted mortgage API | ||
The Weekly Mortgage Rate Update
Each Thursday, a key player in the mortgage market releases their findings on 30-year mortgage rates. This week, we saw a slight dip of 3 basis points, bringing the average down to 6.81%. Just a few weeks earlier, we hit a two-year low of 6.08% on September 26. Last year, rates peaked at a staggering 7.79%, marking a 23-year high. The rollercoaster continues!
It’s essential to note that the average you see from this source is a blended figure over the last five days, while our daily readings provide a sharper snapshot of current trends. Different criteria are applied in both analyses, which can affect your understanding of today’s rates.
Want to take control of your budget? Discover how much your monthly payments would be across various loan scenarios with our Mortgage Calculator.
The rates we publish here are averages and often differ from the enticing teaser rates you may encounter online. Those promotional rates are typically the most favorable and may require certain conditions, such as points paid upfront or a flawless credit score. Remember, your actual rate will depend on various factors unique to your financial situation, so it could look quite different from these averages.
What Influences Mortgage Rates?
Mortgage rates don’t just fall from the sky—they’re shaped by a variety of economic and industry factors. Here’s what you need to know:
With so many factors in play, it’s tough to pinpoint a specific reason for rate changes.
In 2021, macroeconomic factors kept mortgage rates relatively low. The Federal Reserve’s large-scale bond purchases helped stabilize the market during pandemic pressures. This bond-buying strategy is a significant player in the mortgage rate game.
Starting in November 2021, the Fed began to scale back those purchases, leading to important shifts until net zero was reached in March 2022.
From late 2021 to July 2023, the Fed aggressively raised the federal funds rate to combat soaring inflation. Although this rate doesn’t dictate mortgage rates directly, the ripple effects can be significant, often pushing mortgage rates higher.
The Fed’s rapid increases—with a total rise of 5.25 percentage points in just 16 months—have led to substantial shifts in mortgage rates over the past couple of years.
For nearly 14 months, the federal funds rate remained at its peak. However, on September 18, the Fed initiated the first rate cut, with expectations for more in 2024 and possibly 2025. The initial reduction was by 0.50 percentage points.
On November 7, another rate cut of 0.25 percentage points was announced, lowering the federal funds rate to between 4.5% and 4.75%, the lowest since March 2023.
Stay tuned for the next Fed rate announcement on December 18.
How We Monitor Mortgage Rates
The national and state averages mentioned above are generated via a reliable mortgage API. These figures typically reflect a loan-to-value (LTV) ratio of 80% (meaning a down payment of at least 20%) and a credit score in the 680-739 range. The rates listed here represent what you might expect when receiving quotes from lenders, which can differ significantly from the attractive teaser rates you may see advertised. © Trusted Source, 2024. Terms of use apply.
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