Weekly Rate Plunge: Discover the Best Deals Now!

Feeling like mortgage rates are on an endless upward climb? You’re not alone! Just a few months back, many hoped for a dip in rates, yet here we are. But hold on a second—there’s a silver lining!

Surprisingly, rates have taken a downward turn week-over-week! According to recent data, the 30-year fixed mortgage rate has dropped by 15 basis points to an appealing 6.45%. The 15-year fixed rate is down 12 basis points to 5.80%, and the 5/1 ARM rate has plummeted by an impressive 62 basis points to 6.59%.

Now might be the perfect moment to consider purchasing a home! If you’ve got a solid credit score, a low debt-to-income ratio, and enough savings for a down payment and closing costs, you’re in a prime position to seize the opportunity.

Discover more: How to secure the best mortgage rate possible

Here’s the lowdown on today’s mortgage rates, based on fresh data:

• 30-year fixed: 6.45%

• 20-year fixed: 6.35%

• 15-year fixed: 5.80%

• 5/1 ARM: 6.59%

• 7/1 ARM: 6.53%

• 30-year VA: 5.87%

• 15-year VA: 5.44%

• 5/1 VA: 6.08%

• 30-year FHA: 5.58%

Keep in mind, these numbers represent national averages rounded to the nearest hundredth.

Want to know about today’s mortgage refinance rates? Here they are:

• 30-year fixed: 6.47%

• 20-year fixed: 6.44%

• 15-year fixed: 5.82%

• 5/1 ARM: 6.04%

• 7/1 ARM: 6.18%

• 30-year VA: 5.91%

• 15-year VA: 5.82%

• 5/1 VA: 5.49%

Again, these reflect national averages rounded to the nearest hundredth. Keep in mind, refinance rates can often be higher than those for purchasing a home, but that’s not always the case.

Curious? Should you refinance your mortgage now?

Make the most of your finances by utilizing the free mortgage calculator. This tool will help you see how different mortgage terms and interest rates affect your monthly payments.

Our calculator takes into account essential factors like property taxes and homeowners insurance, providing a clearer picture of your total monthly payment!

The prevailing average for a 30-year mortgage today is 6.45%. This long-term option remains a favorite among homeowners, allowing you to spread out payments over 360 months for a more manageable monthly payment.

Meanwhile, the average 15-year mortgage rate stands at 5.80%. Choosing between a 15-year and a 30-year mortgage requires some thought—are you leaning towards short-term gains or long-term stability?

With a 15-year mortgage, you enjoy a lower interest rate and pay off your loan in half the time. Just remember, your monthly payments will be higher since the total amount is amortized over a shorter term.

Consider this: if you secure a $300,000 mortgage at a 30-year term with a 6.45% rate, your monthly payment for principal and interest would be roughly $1,886, culminating in $379,086 in interest over the life of the loan! That’s on top of the original amount!

Now, if you opted for a 15-year term at 5.80%, your monthly payment would rise to $2,499, but you’d only fork out $149,869 in interest over the years. What a difference!

Choosing a fixed-rate mortgage locks in your rate for the entire term of your loan. When refinancing, you’ll receive a new rate, but the security of a fixed rate can be a comforting choice!

Alternatively, an adjustable-rate mortgage offers a fixed rate for an initial period, after which your rate can fluctuate based on various factors. This could mean lower initial payments, but don’t forget to check what happens once that period ends! A 7/1 ARM locks in your rate for seven years before adjusting yearly thereafter.

Adjustable rates may start lower than fixed rates, but they carry their own risks. Lately, some fixed rates even beat the adjustable ones! Make sure to discuss your options with your lender to find the best fit for you.

Explore further: Understanding fixed-rate vs. adjustable-rate mortgages

To snag the best mortgage rates, lenders typically favor those with higher down payments, solid credit scores, and low debt-to-income ratios. If you’re aiming for a lower rate, focus on saving more, boosting your credit score, or reducing debt before diving into the homebuying process!

Waiting for rates to drop might not be your best strategy, especially if you have no urgency and are okay with waiting until 2024 or beyond. If you’re ready to dive in, concentrating on your personal financial health is your best bet for snagging a lower rate!

For those on the hunt for the best mortgage lender, apply for mortgage preapproval with several companies. Be sure to submit your applications within a short period to ensure accurate comparisons and minimize the impact on your credit score.

When selecting a lender, don’t just focus on interest rates. Check out the annual percentage rate (APR)—this gives you a clearer picture of the total cost of borrowing, including any fees and discount points. This is the number that truly matters when comparing lenders!

As of now, the national average for a 30-year mortgage hovers around 6.45%, and for a 15-year mortgage, it’s at 5.80%. However, your local averages may vary—areas with higher home prices often see elevated rates, while more affordable regions enjoy lower rates.

So, while the average 30-year fixed mortgage stands at 6.45% today, with stellar credit and a solid down payment, you might score an even better deal!

While significant drops in mortgage rates are unlikely toward the end of 2024, keep your eyes peeled for possible gradual decreases in 2025. Stay informed and ready to make your move!