today's mortgage interest rate
Mortgage rates fell slightly today following the Federal Reserve's rate cut in November. However, this reduction was anticipated and accounted for by many lenders.
Today's economic indicators come with various pressures on mortgage rates and are likely to be subject to considerable volatility as the market adjusts and reacts to the impact of the election.
Current mortgage interest rates and refinance rates
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>Related: 7 Tips to Get the Best Refinance Rate
30 year fixed rate mortgage
At the time this article was published, the average interest rate on a 30-year fixed mortgage was 6.894%.
According to Freddie Mac, the average 30-year fixed rate mortgage (FRM) hit a weekly low of 2.65% on January 7, 2021 and hit a weekly high of 8.89% on December 16, 1994. did.
While the 30-year FRM provides an affordable option for borrowers, you will pay more interest over the life of your loan compared to shorter mortgages.
15 year fixed rate mortgage
Currently, the average interest rate for a 15-year fixed mortgage is 6.125%.
According to Freddie Mac, the FRM average over the past 15 years hit a weekly low of 2.1% on July 29, 2021, and hit a weekly high of 18.63% on September 10, 1981.
With a 15-year FRM, borrowers pay less interest over a shorter period of time, but their monthly payments are much higher.
5/1 Floating rate home loan
This morning's 5/1 variable rate mortgage averaged 6.198%.
Adjustable-rate mortgages (ARMs) typically have lower initial interest rates than fixed loans. After that initial period ends, the interest rate will adjust to current market conditions. In this case, the initial period is 5 years, with a maximum of one adjustment per year. Homeowners with short-term financing plans tend to find this advantageous.
Market data influencing today's mortgage rates
Here's a snapshot of how it was playing when this article was published. Most of the data is compared to around the same time on the previous business day, so much of the movement is likely to have occurred in the previous session. The numbers are:
The yield on the 10-year US Treasury note fell to 4.288% from 4.359%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these specific Treasury yields. Major stock indexes were mixed, but rose today. (Having a negative impact on mortgage rates.) When investors buy stocks, they often sell bonds, pushing prices down and raising yields and mortgage rates. The opposite can happen if the index is low. But this is an imperfect relationship Oil prices fell from $72.01 to $70.36 per barrel. (Favourable for mortgage rates*.) Energy prices play a key role in shaping inflation and also signal future economic activity Gold prices fell from $2,704 to $2,696 per ounce. (Although neutral, mortgage rates are going in the wrong direction*.) In general, when gold prices rise, interest rates get better, and when gold prices fall, interest rates get worse. That's because gold tends to rise when investors worry about the economy. CNN Business Fear & Greed Index — Up from 60 to 61 out of 100. (Hard for mortgage rates.) As “greedy” investors leave the bond market and move into the stock market, they drive down bond prices (and raise interest rates). Fearful investors do the opposite. Therefore, a lower reading is often better than a higher reading
*A change of less than $20 in the price of gold or less than 40 cents in the price of oil is a change of less than 1%. Therefore, we only count meaningful differences as good or bad for mortgage rates.
Notes on markets and rates
Before the pandemic, the post-pandemic chaos, and the Ukraine war, you could look at the numbers above and make a pretty accurate guess at what mortgage rates would be on any given day. But that's no longer the case. I still call her every day. And that's usually true. However, until the situation calms down, the accuracy records will not reach the high levels as before.
Therefore, use the market only as a rough guide. Because they need to be very strong or weak for us to depend on them. But even with that in mind, today's mortgage rates are likely to rise little by little or remain largely unchanged. However, note that “intraday fluctuations” (rates changing speed or direction during the day) are a common feature at this time.
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What is driving mortgage rates today?
this week
Two Federal Reserve officials are scheduled to speak today following yesterday's 25 basis point interest rate cut.
Federal Reserve Bank President Michelle Bowman will address banking regulation at 11 a.m. ET, and St. Louis Fed President Alberto Moussallem will open the meeting at 2:30 p.m. ET. They will likely comment on the latest Fed decisions, the overall economy, and what to expect after the election.
Looking ahead, the next monthly edition of the Consumer Price Index will be released on Wednesday, November 13th. This report shows trends in the annual inflation rate, so it is important as an economic indicator and, by extension, mortgage interest rates.
recent trends
Freddie Mac's Nov. 7 report showed that the weekly average 30-year fixed mortgage rate was 6.79%, an increase of 7 basis points from the previous week. However, please note that Freddy's data is most often not the most up-to-date at the time it releases its weekly numbers. Still, it's a good way to track trends.
Expert predictions on mortgage interest rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each have teams of economists dedicated to monitoring and predicting what will happen to the economy, the housing sector, and mortgage rates.
And here are the interest rate forecasts for the last quarter of 2024 and the first three quarters of 2025 (Q4 2024, Q1 2025, Q2 2025, and Q3 2025).
The figures in the table below are for a 30-year fixed rate mortgage. Fannie was updated on September 10th and MBA was updated on September 23rd.
“We expect economic growth to continue, albeit at a slower pace. In our base case, inflation is expected to cool further,” Freddie Mac said in its September 23 mortgage market outlook. Debates over the timing and pace of potential future rate cuts are more likely to drive the near-term path of interest rates than the actual policy decisions themselves.
Of course, given that there are so many unknowns, these predictions may be even more speculative than usual. And because of the volatile nature of interest rates, its past record on accuracy has been less than impressive.
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Mortgage interest rate methodology
The Mortgage Report receives daily interest rates from multiple lending partners based on the criteria you select. Determine the average interest rate and annual percentage rate for each loan type to display on the chart. We average out different prices so you can get a better idea of what you can find on the market. Additionally, we average out interest rates for the same loan type. For example, FHA fixed and FHA fixed. The end result is a nice snapshot of daily rates and how they change over time.
Current mortgage interest rate method
We receive current mortgage rates daily from our network of mortgage lenders who offer home purchase loans and refinance loans. The mortgage rates shown here are based on a sample of borrower profiles that vary by loan type. See full financing prerequisites here.
Frequently asked questions about current mortgage rates
A good mortgage rate is one that is consistent with current market trends and your financial situation. According to Freddie Mac, as of November 7, 2024, the average interest rate for a 30-year fixed mortgage is 6.79% and for a 15-year fixed mortgage is 6%.
Mortgage interest rates are influenced by several factors, including the economy, the borrower's credit score, the loan term, and overall housing market conditions. Lenders will also consider the loan amount, down payment, and whether the loan is a conventional or government-backed loan.
When looking for the lowest possible mortgage rate, it's essential to cast a wide net. Take the time to research the services offered by different lenders, including banks, credit unions, and online mortgage providers. Gathering multiple quotes increases your ability to identify the most competitive rates and terms that align with your financial goals.
Your choice often comes down to your financial goals and risk tolerance. If you prioritize predictability and plan to stay in your home for a long time, a fixed-rate mortgage may be a solid option. However, if you are willing to accept some risk and plan to sell or refinance before the interest rate adjustment begins, an adjustable rate mortgage may offer a lower initial interest rate that better suits your needs.
Most forecasts predict that mortgage rates will decline gradually from 2024 to 2025, with 30-year fixed rates likely falling below 6.5% by the fourth quarter. However, this decline may be gradual and may result in interest rates rising in the short term. If you want to settle quickly, locking the rate can provide stability, but trust your instincts and risk tolerance when deciding whether to float or lock.
