Unlock Savings: Discover Today’s Mortgage Rates for December 6, 2024!

Some of the products featured on this page are linked through affiliate partnerships, which means we might receive a commission if you make a purchase through our links (for further details, check out our advertiser disclosure). Rest assured, our views are entirely our own. Discover how we evaluate mortgage lenders to ensure you get honest and informative reviews.

• As of December 6, 2024, mortgage rates sit at approximately 6.30%, dipping slightly from last month’s average of 6.56%.
• Keep an eye on next week’s CPI release—it could sway rates depending on November’s inflation trends.
• Expect rates to soften next year as the Federal Reserve aims to lower its benchmark rate, although persistent inflation could complicate this outlook.

Mortgage rates have seen a slight drop this month, but the direction they take next hinges on the evolving economic landscape.

With the Federal Reserve’s commitment to reducing the federal funds rate, mortgage rates are projected to decline in the upcoming year. However, recent robust economic indicators and a slight uptick in inflation in October may lead the Fed to hold off on rate cuts, which could, in turn, affect mortgage rates.

Next week, the Bureau of Labor Statistics will unveil the consumer price index data for November. According to the Federal Reserve Bank of Cleveland’s inflation nowcast, this inflation metric is estimated to have risen by 2.70% year over year in November, signaling another increase from the prior month. Depending on the actual data, we could witness some fluctuations in mortgage rates upon its release.

Current Mortgage Rates

Current Refinance Rates

Mortgage Calculator

Use our free mortgage calculator to explore how today’s mortgage rates will influence your monthly payments. By entering various rates and term lengths, you can see how much you’ll pay over the entire mortgage duration.

Click “More details” for tips on how to save money on your mortgage in the long run.

30-Year Mortgage Rates Today

The average 30-year mortgage rate sits at around 6.30%, according to data from Zillow, down from an average of 6.56% last month.

The 30-year fixed-rate mortgage remains the go-to choice for many homebuyers. This mortgage type allows you to pay back the borrowed amount over 30 years with a consistent interest rate throughout the loan’s life.

With this extended term, your monthly payments remain lower and more manageable. However, bear in mind that this usually comes with a higher interest rate compared to shorter terms, like a 15-year mortgage.

15-Year Mortgage Rates Today

Average 15-year mortgage rates are currently in the upper-5% range, based on Zillow’s data, which showed rates averaging 5.91% in November.

If you prefer the stability of a fixed rate but want to minimize your interest payments, a 15-year fixed-rate mortgage could be your best bet. These terms generally feature lower rates compared to 30-year fixed-rate mortgages, potentially saving you tens of thousands in interest over time. However, keep in mind that your monthly payment will be higher with this option.

Average Mortgage Refinance Rates Today

Refinance rates have dipped slightly compared to last month. In November, 30-year refinance rates averaged 6.62%, while 15-year refinance rates hovered around 5.96%.

How Much Do Mortgage Rates Need to Drop to Refinance?

Thinking about refinancing? Do the math to determine if it’s the right move for you. Many experts suggest refinancing only if you can lower your rate by at least a percentage point, but it ultimately depends on your unique situation.

If refinancing allows you to save enough monthly to recoup costs within a reasonable timeframe, it might be worthwhile. To calculate this, divide your closing costs by the amount you’ll save on your monthly mortgage payment. For example, if you spend $3,000 to refinance and save $200 monthly, you’ll break even in 15 months.

5-Year Mortgage Rate Trends

Here’s how 30-year and 15-year mortgage rates have changed over the past five years, according to Freddie Mac data.

What Factors Influence Mortgage Rates?

Mortgage rates are influenced by a myriad of factors, including broader economic trends, Federal Reserve policy, your state’s current mortgage rates, loan type, and your individual financial profile.

While many of these factors are beyond your control, you can take steps to boost your credit score, manage debt, and save for a larger down payment to secure the most favorable rates.

How Does the Fed Rate Affect Mortgage Rates?

The Fed made significant increases to the federal funds rate in 2022 and 2023 to slow down economic growth and combat inflation. While inflation has noticeably decreased, it still hovers above the Fed’s 2% target rate.

Although mortgage rates don’t directly correlate with changes to the federal funds rate, they typically adjust in anticipation of Fed policy. This is largely driven by investor demand for mortgage-backed securities, influenced by how investors project Fed policy will impact the economy.

In its November meeting, the Fed decreased rates by 25 basis points, following a previous 50-basis-point cut in September. This recent cut did not significantly affect mortgage rates, but we can expect rates to trend down in the forthcoming year as the Fed continues its cuts.

How Low Will Mortgage Rates Go?

With uncertainty surrounding the economy’s trajectory in the coming months and years, pinpointing exact future mortgage rate levels is challenging. However, they may not fall as significantly as previously expected in 2025.

Even if rates decline substantially, it’s unlikely they’ll revert to the historic lows we saw in 2020 and 2021, when 30-year fixed rates dipped below 3%. We anticipate rates will continue to decrease over the next year or two, possibly stabilizing in the 6% range.

How Do Mortgage Interest Rates Work?

Your mortgage interest rate determines the cost of borrowing funds for your home purchase or refinance. Each month, you’ll make a payment that includes both loan repayment and interest costs.

Through a process known as amortization, the portion of your monthly payment allocated to interest decreases over time as you pay down your mortgage. For instance, if you take out a $300,000 mortgage at a 6.5% interest rate, your monthly payment would be around $1,896. Initially, only $271 of that goes toward the principal, with $1,625 going toward interest. Fast forward 20 years, and $992 would go toward the principal, while about $905 would be interest.

For a detailed breakdown of your payments throughout the loan’s life, request an amortization schedule from your lender or utilize an online amortization calculator.

How Often Do Mortgage Rates Change?

Mortgage rates are highly dynamic, changing throughout the day based on economic conditions. In stable times, rates may not fluctuate significantly; however, uncertainty or anticipated economic changes can spur shifts in rates.

How to Shop for Mortgage Rates

Mortgage lenders offer varying rates, so exploring your options can lead to significant savings.

Experts suggest obtaining quotes from multiple lenders—aim for at least three—to gauge the range of available rates. If you’re in the early stages, consider applying for preapproval to get a sense of potential rates while house hunting. If you’re already under contract, applying for regular approval will provide a clearer picture of the costs with a specific lender.

When evaluating offers, consider the overall package. If lower rates come with hefty fees, it might not be worthwhile. Also, factor in other important aspects, such as customer service and down payment assistance.