Unlock Today’s Mortgage Rates: December 24, 2024 Insights Revealed!
Current Mortgage Rates: What You Need to Know
The holiday season has brought a surprise twist to mortgage rates, with a noticeable uptick just before Christmas and Hanukkah.
While many borrowers are wishing for the present of lower rates this festive season, today’s market indicators coupled with rising Treasury yields suggest a surge in short-term upward pressure.
Today’s Mortgage and Refinance Rates
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| Program | Mortgage Rate | APR* | Change |
|---|---|---|---|
| Conventional 30-Year Fixed | 6.928% | 6.978% | +0.04 |
| Conventional 20-Year Fixed | 6.803% | 6.86% | +0.15 |
| Conventional 15-Year Fixed | 6.195% | 6.274% | +0.05 |
| Conventional 10-Year Fixed | 6.076% | 6.149% | +0.05 |
| 30-Year Fixed FHA | 6.886% | 6.931% | +0.02 |
| 30-Year Fixed VA | 6.748% | 6.792% | +0.1 |
| 5/1 ARM Conventional | 6.45% | 7.115% | -0.03 |
| Rates are provided by our partner network and may not reflect current market conditions. Your rate might differ. Click here for a personalized rate quote. For our rate assumptions, see them here. | |||
>Related: 7 Tips to Secure the Best Refinance Rate
The 30-Year Fixed Rate Mortgage
As of this publication, the average 30-year fixed mortgage rate is hovering around 7%.
This rate has seen dramatic fluctuations, with a low of just 2.65% on January 7, 2021, and a high of 8.89% recorded on December 16, 1994, according to market data.
A 30-year fixed-rate mortgage offers an attractive pathway for many buyers, allowing manageable monthly payments. However, keep in mind that you’ll end up paying more interest over time compared to shorter-term options.
The 15-Year Fixed Rate Mortgage
Right now, the average 15-year fixed mortgage rate stands at 6.27%.
This product reached its lowest average of 2.1% on July 29, 2021, while it peaked at 18.63% on September 10, 1981.
Choosing a 15-year fixed mortgage means you’ll enjoy less interest accrued, but be prepared for those higher monthly payments.
The 5/1 Adjustable-Rate Mortgage
This morning, the average 5/1 adjustable-rate mortgage is at 6.76%.
ARMs usually start with lower rates than fixed mortgages, but after the initial five-year period, rates adjust based on market conditions. This could be a smart choice if you plan to move or refinance within that time frame.
Market Influences on Today’s Rates
Here’s a quick breakdown of the current market situation impacting rates as this article goes live. Note that these figures mainly reflect changes from the previous business day:
- The yield on 10-year Treasury notes has risen to 4.626%, up from 4.571%. (This is typically unfavorable for mortgage rates.) As mortgage rates generally follow these Treasury yields, expect fluctuations.
- All major stock indexes experienced growth today. (This can also negatively impact mortgage rates.) Investors leaning towards stocks tend to sell bonds, which drives prices down and yields up, affecting mortgage rates.
- Oil prices have increased to $70.36 a barrel, up from $68.97. (Bad news for mortgage rates.) Rising energy prices can lead to increased inflation and impact economic activity.
- Gold prices are steady at $2,627 an ounce. (This is neutral for mortgage rates.) Generally, rising gold prices signal economic concern, potentially benefiting mortgage rates.
- CNN Business Fear & Greed Index has risen to 33 from 26 out of 100. (This trend is unfavorable for mortgage rates.) A “greedy” market often leads to lower bond prices and higher rates, while a “fearful” market does the opposite.
*Please note that only significant changes in gold or oil prices are considered impactful for mortgage rates.
Understanding Market Fluctuations and Rates
In the wake of pandemic shifts, geopolitical events, and economic volatility, accurately predicting mortgage rate movements based on market data has become increasingly complex. While we still provide daily forecasts based on current trends, fluctuations can be sharp and unpredictable.
In essence, today’s rates could either climb slightly or remain steady. Be prepared for those common “intraday swings” where rates fluctuate throughout the day.
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What’s Influencing Mortgage Rates This Week?
This Week’s Economic Landscape
This week is relatively quiet in terms of economic reports, with no major releases expected until Thursday. Keep an eye out for jobless claims data and the preliminary U.S. trade balance figures coming this Friday.
Trends to Watch
According to the December 19 report, the weekly average for a 30-year fixed mortgage rate is now at 6.72%, reflecting an increase of 12 basis points from the prior week. Although these figures may feel slightly dated by publication, they remain a valuable tool for tracking market trends.
What Experts Predict for Mortgage Rates
If you’re looking to the future, organizations like Fannie Mae and the Mortgage Bankers Association (MBA) are continuously analyzing economic conditions and housing forecasts.
Here’s what their projections look like for the last 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% |
In its October 18 Mortgage Market Outlook, it was noted, “we expect the economy to continue growing, albeit at a slower pace.” The Federal Reserve has signaled potential interest rate cuts in the coming years, with expectations for further reductions.
However, given the numerous uncertainties in play, these forecasts should be taken with caution. Past predictions have often missed the mark due to the unpredictable nature of interest rates.
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Understanding Mortgage Rate Methodology
The Mortgage Reports compiles rates daily from a carefully selected range of lending partners. We calculate an average rate and APR for each loan type, providing you with a comprehensive view of current market conditions. Our methodology ensures you’re seeing a reliable snapshot of daily rates and trends over time.
Current Mortgage Rates Methodology
We gather current mortgage rates daily from a network of lenders providing home purchase and refinance loans. These rates are based on varied borrower profiles. For a complete understanding of our loan assumptions, click here.
Your Mortgage Rate FAQs
A good mortgage rate aligns with current market trends and fits your financial profile. As of December 19, 2024, the average for a 30-year fixed mortgage is 6.72%, and 5.92% for a 15-year fixed mortgage.
Mortgage rates depend on several factors, including economic conditions, your credit score, loan term, and housing market dynamics. Lenders also consider loan amount and down payment.
To find the best mortgage rates, be proactive. Investigate various lenders, from banks to online providers. Collect multiple quotes to better identify competitive rates and terms suited for your goals.
Your choice often hinges on financial objectives and risk tolerance. A fixed-rate mortgage offers stability for long-term homeowners, while an adjustable-rate mortgage might provide lower initial rates for those planning to move or refinance soon.
While many experts predict a gradual decline in mortgage rates through 2025, fluctuations are still possible. If you’re nearing closing, locking in your rate may provide security, but trust your instincts based on your financial comfort.
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