Unlock Today’s Mortgage Rates: Dec. 6, 2024 – Find Your Best Deal!
Today’s Mortgage Rates: What You Need to Know
This morning, we saw a shift in mortgage rates, with most climbing up after a week of declines. Interestingly, the average 30-year fixed mortgage rate took a slight dip. So, what’s really going on in the market?
Despite an impressive November job report that surpassed expectations, today’s economic indicators suggest short-term downward pressure on mortgage rates. Buckle up, because this could be good news for your wallet!
Current Mortgage and Refinance Rates
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| Program | Mortgage Rate | APR* | Change |
|---|---|---|---|
| Conventional 30-Year Fixed | 6.779% | 6.829% | -0.02 |
| Conventional 20-Year Fixed | 6.529% | 6.585% | -0.03 |
| Conventional 15-Year Fixed | 6.102% | 6.181% | -0.03 |
| Conventional 10-Year Fixed | 5.986% | 6.06% | -0.01 |
| 30-Year Fixed FHA | 6.589% | 6.635% | -0.01 |
| 30-Year Fixed VA | 6.528% | 6.573% | -0.08 |
| 5/1 ARM Conventional | 6.385% | 7.128% | -0.07 |
| Rates are sourced from our trusted network of partners and may not reflect the current market. Your specific rate could vary. Get a personalized rate quote here. Discover our rate assumptions Learn about our rate assumptions here. | |||
>Related: 7 Tips to Secure the Best Refinance Rate
30-Year Fixed Rate Mortgage Insights
As of today, the average 30-year fixed mortgage stands at 6.78%. For context, it hit an all-time low of 2.65% on January 7, 2021, and soared to a peak of 8.89% on December 16, 1994. A 30-year FRM is budget-friendly but remember, you’ll likely pay more in interest over time compared to shorter-term loans.
15-Year Fixed Rate Mortgage at a Glance
Currently, the average 15-year fixed mortgage rate is 6.1%. This product reached a historic low of 2.1% on July 29, 2021, and peaked at 18.63% back in September 1981. Opting for a 15-year FRM can save you on interest but expect higher monthly payments.
Understanding the 5/1 Adjustable-Rate Mortgage
This morning, the average 5/1 adjustable-rate mortgage comes in at 6.39%. ARMs generally offer lower initial rates compared to fixed loans, but after the first five years, rates can adjust based on market conditions. This flexibility can be a win for homeowners with plans to move or refinance within a few years.
Market Data Influencing Today’s Mortgage Rates
As of the latest updates, here’s how key market indicators are shaping the landscape:
- The yield on 10-year Treasury notes dropped to 4.163% from 4.201%. (Good news for mortgage rates!) Typically, mortgage rates mirror these Treasury bond yields.
- Major stock indexes kicked off the morning on a positive note. (Not ideal for mortgage rates.) Investor interest in stocks can push bond prices down, which may elevate yields and mortgage rates.
- Oil prices fell to $67.27 from $68.36 per barrel. (Positive impact on mortgage rates.) Energy prices can influence inflation and signal future economic health.
- Gold prices edged up to $2,662 from $2,661 an ounce. (Neutral but trending positively for mortgage rates.) Rising gold prices often indicate investor concerns about the economy.
- The CNN Business Fear & Greed index dipped to 54 from 58 out of 100. (Favorable for mortgage rates.) Lower readings often suggest a cautious investor mood, which can stabilize bond prices.
*Minor fluctuations of less than $20 in gold or 40 cents in oil are considered negligible and won’t significantly impact mortgage rates.
Caveats Regarding Markets and Rates
In this era of unprecedented economic shifts, traditional indicators may not reliably predict daily mortgage rate movements. While we continue to analyze the data and generally arrive at accurate conclusions, keep in mind that the market’s volatility calls for caution. Today, mortgage rates could nudge upward or stay steady, with “intraday swings” becoming a common occurrence.
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What’s Impacting Mortgage Rates Today?
This Week’s Economic Landscape
This week is pivotal, featuring the monthly U.S. Employment report from the Bureau of Labor Statistics—a considerable influence on interest rates and Federal Reserve policy.
In November, the economy added 227,000 jobs, surpassing the forecast of 214,000. Meanwhile, the unemployment rate nudged up to 4.2% from 4.1% in October. Hourly wages remained steady, rising 0.4% compared to the expected 0.3%.
While this data suggests a robust job market—which normally nudges mortgage rates up—it also paints a nuanced picture. “Although payroll employment rebounded in November, the overall report indicates some softening in the labor market,” notes an expert. It seems that while job creation is stable, new job seekers are facing challenges.
As the Federal Reserve navigates these trends, they have emphasized their data-driven approach to future rate decisions. The prevailing outlook suggests a potential rate cut might be on the horizon, with further adjustments expected into 2025.
Stay tuned as Federal Reserve officials share insights on the jobs report throughout the day—starting at 9:15 AM ET!
Recent Trends in Mortgage Rates
According to the latest report, the weekly average for 30-year fixed mortgage rates stands at 6.69%, down 12 basis points from the prior week. Keep in mind that these figures can lag behind real-time trends, but they provide valuable insights into overall market behavior.
Expert Insights: What Lies Ahead?
Looking ahead, both Fannie Mae and the Mortgage Bankers Association have dedicated teams forecasting economic movements and mortgage rates. Their predictions for the end of 2024 and the first three quarters of 2025 indicate a steady decline in the 30-year fixed mortgage rates.
| 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% |
In its latest outlook, experts anticipate economic growth, albeit at a slower pace, and a gradual decrease in inflation. The Fed is expected to implement further cuts to the federal funds rate in 2024 and beyond.
Of course, given the unpredictability of the market, these forecasts should be considered with some caution. The nature of interest rates means that even the best predictions can be off-mark.
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Mortgage Rate Methodology
We receive rates based on selected criteria from a network of lending partners each day. Our average rate and APR for each loan type offer a comprehensive view of what borrowers might find in the marketplace. This averaging process ensures you get a solid snapshot of current rates and trends.
Current Mortgage Rates Methodology
Our current mortgage rates are sourced daily from multiple lenders offering home purchase and refinance loans. These rates reflect sample borrower profiles specific to each loan type. For detailed loan assumptions, click here.
Today’s Mortgage Rates: Frequently Asked Questions
A good mortgage rate is one that aligns with current market trends and your financial situation. As of December 5, 2024, the average rate for a 30-year fixed mortgage is 6.69%, while the 15-year fixed mortgage averaged 5.96%.
Mortgage rates are influenced by various factors—including the economy, the borrower’s credit score, the loan term, and overall housing market conditions. Lenders also take the loan amount, down payment, and whether the loan is conventional or government-backed into account.
To find the best mortgage rates, explore a variety of lenders—banks, credit unions, and online mortgage providers. Comparing multiple quotes helps you identify the most competitive rate and terms tailored to your financial goals.
The choice between the two often depends on your financial goals and risk tolerance. If you want predictability and plan to stay in your home long-term, a fixed-rate mortgage may be the way to go. Conversely, if you’re comfortable with some risk and expect to sell or refinance before rates adjust, an adjustable-rate mortgage could be beneficial.
Experts predict a gradual decline in mortgage rates through 2024 and 2025, with the 30-year fixed rate likely dropping below 6.5% by late 2024. While locking in your rate may ensure stability, consider your instincts and risk tolerance before deciding whether to lock or float.
