Mortgage rates this week
- The average rate on a 30-year fixed mortgage is up to 6.62% this week
- The average rate on a 15-year fixed mortgage is down to 5.89% this week
30-year fixed-rate mortgages
The average 30-year fixed mortgage rate increased slightly to 6.62% this week, up from last week's average of 6.61%. A year ago at this time, the 30-year rate averaged 6.48%.
15-year fixed-rate mortgages
The average 15-year mortgage rate decreased to 5.89%, down from an average of 5.93% last week. This time a year ago, the 15-year fixed rate averaged 5.73%.
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Mortgage rate trends
See how mortgage rates have changed over the last 3 months. The average 30-year mortgage rate hit a high of 7.79% the week of October 26th, while the average 15-year mortgage rate topped out at 7.03%, the same week.
| Week of | 30-year mortgage rate | 15-year mortgage rate |
|---|---|---|
| Jan 4, 2024 | 6.62% | 5.89% |
| Dec 28, 2023 | 6.61% | 5.93% |
| Dec 21, 2023 | 6.67% | 5.95% |
| Dec 14, 2023 | 6.95% | 6.38% |
| Dec 7, 2023 | 7.03% | 6.29% |
| Nov 30, 2023 | 7.22% | 6.56% |
| Nov 23, 2023 | 7.29% | 6.67% |
| Nov 16, 2023 | 7.44% | 6.76% |
| Nov 9, 2023 | 7.50% | 6.81% |
| Nov 2, 2023 | 7.76% | 7.03% |
| Oct 26, 2023 | 7.79% | 7.03% |
| Oct 19, 2023 | 7.63% | 6.92% |
| Oct 12, 2023 | 7.57% | 6.89% |
| Oct 5, 2023 | 7.49% | 6.78% |
| Sept 28, 2023 | 7.31% | 6.72% |
| Sept 21, 2023 | 7.19% | 6.54% |
| Sept 14, 2023 | 7.18% | 6.51% |
| Sept 7, 2023 | 7.12% | 6.52% |
| Aug. 31, 2023 | 7.18% | 6.55% |
| Aug. 24, 2023 | 7.23% | 6.55% |
| Aug. 17, 2023 | 7.09% | 6.46% |
| Aug. 10, 2023 | 6.96% | 6.34% |
| Aug. 3, 2023 | 6.90% | 6.25% |
| July 27, 2023 | 6.81% | 6.11% |
| July 20, 2023 | 6.78% | 6.06% |
What’s behind current mortgage rate trends?
Inflation: The current inflation rate is 3.7%, the same as last month. Mortgage lenders often demand higher interest rates to compensate for the eroding purchasing power of money due to inflation.
Federal funds rate: The federal funds rate is set by central bank officials, and it’s the interest rate that banks charge one another for borrowing money. Central banks adjust key interest rates to control inflation or stimulate the economy, and mortgage rates can follow suit. The current federal funds rate is at 5.25% to 5.50%.
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How mortgage rates affect your monthly payments
Say you’re buying a $500,000 property, have a 10% down payment and lock in a 30-year fixed mortgage at today’s average rate of 6.62%. Using a mortgage calculator, your monthly mortgage payment would be $3,931 a month, not including property taxes and insurance.
When buying a home, keep in mind that most lenders want you to keep your housing expenses at or under 30% of your gross income. Based on your income and expenses, use this calculator to find out how much home you could afford at today’s mortgage rates.
Mortgage application demand down
Demand for mortgages decreased 9.4% this week from two weeks earlier, according to the Mortgage Bankers Association (MBA).
Meanwhile, refinance application activity went down by 18% from two weeks ago — and is 15% higher than the same period a year ago.
“Markets continued to digest the impact of slowing inflation and potential rate cuts from the Federal Reserve, helping mortgage rates to stay at levels close to the lowest since mid-2023," said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
"The recent decline in rates has given the housing market some cause for optimism going into 2024, but purchase applications have not yet picked up in response, with the overall level of purchase activity 12 percent lower than a year ago."
Should you buy a home at the current mortgage rates?
With the current 30-year fixed mortgage rate at 6.62%, you might wonder if now is the right time to buy a home. To help you make the best decision, ask yourself a few questions.
Am I financially stable? Reflect on your current financial situation, including your income, job stability, and overall financial health. Use a mortgage income calculator to determine what monthly mortgage payment you could comfortably afford. Remember to factor in property taxes, insurance, and maintenance costs.
Where do I see myself in 5, 10 years? Imagine yourself five, 10, 15 years from now. What does your career look like? Are you in the same city/state? Thinking about your long-term plans can help you determine if buying a home at today’s mortgage rates is a good idea or not.
How’s my credit score? Your credit score plays a significant role in the interest rate you'll be offered. If it’s on the low end, you may want to focus on boosting your score. With a higher credit score, you can qualify for the best mortgage rates available.
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