Unlock Today’s Best Mortgage Rates: December 21, 2024 Insights!

Disclaimer: The links you see on this page are affiliate links, meaning we may earn a commission if you make a purchase through them. But don’t worry—our opinions are our own. For more insights, check out our advertiser disclosure and see how we evaluate our recommendations.

• Mortgage rates for December 21, 2024, are roughly 6.70%.
• This week’s updated economic projections from the Fed led to a spike in mortgage rates.
• Only two rate cuts are anticipated next year, suggesting minimal decline in mortgage rates for 2025.

This week kicked off with mortgage rates settling in the mid-6% range, but they’ve crept up following the Federal Reserve’s latest meeting.

The Fed recently cut the federal funds rate by 25 basis points, following similar reductions in September and November. However, new projections indicate fewer cuts ahead, contributing to the uptick in mortgage rates.

While forecasts hint at mortgage rates dipping into the low 6% range by year’s end, if the Fed only implements a couple of cuts, those predictions might prove overly optimistic for 2025.

Current Mortgage Rates

Current Refinance Rates

Mortgage Calculator

Utilize our free mortgage calculator to discover how today’s rates affect both your monthly and long-term payments.

Try adjusting term lengths and interest rates to see how they impact your monthly payment.

30-Year Mortgage Rates

Current average 30-year mortgage rates are about 6.70%, slightly up from 6.56% last month. This popular loan option allows for a long repayment period, keeping monthly payments lower but potentially costing more in interest over time.

While a 30-year term gives you flexibility, consider the trade-offs of higher rates compared to shorter-term products, like 15-year mortgages.

15-Year Mortgage Rates

Average 15-year mortgage rates are hovering around 6%. Their lower rates mean you could save significantly on interest over the life of your loan, albeit with higher monthly payments compared to a 30-year option.

ARM Rates

Adjustable-rate mortgages (ARMs) are currently offering rates similar to fixed mortgages. Last month, the average rate for a 7/1 ARM was 6.82%. With ARMs, your rate is fixed for an initial term, after which it adjusts periodically based on market conditions.

FHA Interest Rates

Last month, FHA interest rates were at 5.41% but are now higher. FHA loans are designed to help those with lower credit scores and down payments, making them an excellent option for first-time buyers.

VA Mortgage Rates

Current VA mortgage rates are about 6%. VA loans, available to veterans and military members, come with no down payment requirements and no mortgage insurance, making them a fantastic choice for eligible borrowers.

Mortgage Refinance Rates

Recent trends show refinance rates aligning closely with purchase rates. Last month, 30-year refinance rates averaged 6.62%.

When Should You Refinance?

Considering refinancing? Experts recommend doing so if you can lower your rate by at least one percentage point. Ultimately, weigh the monthly savings against your closing costs to determine if refinancing is worth your while.

5-Year Mortgage Rate Trends

Take a look at how mortgage rates have shifted over the past five years:

Factors Influencing Mortgage Rates

Many elements dictate mortgage rates today, from economic trends to your personal financial profile. While some factors are beyond your control, improving your credit score and saving for a larger down payment can help secure better rates.

Impact of the Fed on Mortgage Rates

The Fed’s actions heavily influence economic conditions, and while they don’t set mortgage rates directly, these rates often respond to Fed moves. With the Fed projected to slow rate cuts in 2025, expect only minor declines in mortgage rates.

2025 Mortgage Rate Predictions

With recent increases in mortgage rates, slight easing is anticipated next year. However, the economic landscape could shift those predictions dramatically, depending on inflation trends and growth forecasts.