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National mortgage rates were mostly up versus last week, according to data collected by Bankrate. Average rates for 30-year fixed, 15-year fixed and jumbo loans increased, while 5/1 ARM rates decreased.
Mortgage rates could gradually come down this year, according to Greg McBride, CFA, Bankrate chief financial analyst. As the Federal Reserve stopped raising rates in 2023, mortgages rates started to drop at the end of Q4. The central bank now anticipates rate cuts in 2024 — a reversal that would touch all corners of the economy, including on the 10-year Treasury, the main driver of fixed mortgage rates.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says McBride. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.03% | 7.00% | +0.03 |
| 15-year fixed | 6.48% | 6.33% | +0.15 |
| 5/1 ARM | 6.13% | 6.36% | -0.23 |
| 30-year fixed jumbo | 7.06% | 7.05% | +0.01 |
Rates last updated January 24, 2024.
The rates listed here are Bankrate's overnight average rates and are based on the assumptions shown here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, January 24th, 2024 at 7:30 a.m.
Current 30 year mortgage rate climbs, +0.03%
Today's average rate for the benchmark 30-year fixed mortgage is 7.03 percent, up 3 basis points over the last week. Last month on the 24th, the average rate on a 30-year fixed mortgage was lower, at 6.93 percent.
At the current average rate, you'll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That's an increase of $2.02 over what you would have paid last week.
Use the loan widgets on this page or head to our primary rates page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.
15-year mortgage rate moves up, +0.15%
The average rate for a 15-year fixed mortgage is 6.48 percent, up 15 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $870 per $100,000 borrowed. That's clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate trends down, -0.23%
The average rate on a 5/1 ARM is 6.13 percent, ticking down 23 basis points since the same time last week.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.13 percent would cost about $608 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.
Jumbo mortgage rate moves up, +0.01%
The average jumbo mortgage rate today is 7.06 percent, up 1 basis point since the same time last week. A month ago, the average rate for jumbo mortgages was lower, at 6.97 percent.
At today's average jumbo rate, you'll pay a combined $669.34 per month in principal and interest for every $100,000 you borrow. That's $0.68 higher compared with last week.
Mortgage refinance rates
Today's 30-year mortgage refinance rate moves higher, +0.02%
The average 30-year fixed-refinance rate is 7.18 percent, up 2 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.09 percent.
At the current average rate, you'll pay $677.43 per month in principal and interest for every $100,000 you borrow. That's an additional $1.35 per $100,000 compared with last week.
Where are mortgage rates heading?
The Federal Reserve has signaled that it intends to cut rates in 2024, depending on inflation and employment data and other factors. The Fed meets again on Jan. 31.
The average 30-year fixed mortgage rate is hovering just under 7 percent as of mid-January. As the year progresses, expect rates to slowly trend downward, says McBride.
“Mortgage rates will spend the bulk of the year in the 6s, with movement below 6 percent confined to the back half of the year,” says McBride.
The rates on 30-year mortgages mostly follow the 10-year treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. Your rate might be higher or lower than what trends show, depending on your credit score and other factors.
What these rates mean for your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent any time soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
Keep in mind: You could save thousands over the life of your mortgage by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
"All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, senior economic analyst for Bankrate. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
- Mortgage rate trend predictions for this week
- The latest mortgage news for this week
- Compare today's mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
As an expert in finance and mortgage markets, with a background in financial analysis and economic trends, I can provide comprehensive insights into the concepts and information presented in the article you've shared. My expertise extends to understanding financial products, market movements, and the factors influencing interest rates.
Firstly, let's delve into the concepts and terms used in the article:
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Bankrate: Bankrate is a trusted source for financial information, known for its commitment to providing accurate and unbiased guidance to consumers. Established in 1976, it has a long-standing reputation in the finance industry.
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Editorial Policy: Bankrate adheres to a strict editorial policy, ensuring that the content it publishes is objective, accurate, and trustworthy. This policy involves employing highly qualified professionals and subject matter experts to create and review content.
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Mortgage Rates: The article discusses various mortgage rates, including 30-year fixed, 15-year fixed, 5/1 ARM, and jumbo loans. These rates represent the interest charged on mortgages of different terms and sizes.
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Federal Reserve: The Federal Reserve, often referred to as the Fed, plays a crucial role in influencing interest rates through its monetary policy decisions. Changes in the Fed's policy, such as rate cuts or hikes, can impact mortgage rates and the broader economy.
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10-Year Treasury Yield: The 10-year Treasury yield serves as a benchmark for fixed mortgage rates. Changes in the yield reflect investor sentiment and economic conditions, influencing mortgage rates accordingly.
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Economic Factors: Economic indicators such as inflation, employment data, and overall market conditions also influence mortgage rates. Understanding these factors is essential for predicting future rate movements.
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Mortgage Types: The article discusses various mortgage types, including fixed-rate and adjustable-rate mortgages (ARMs). Each type has its pros and cons, and borrowers must consider their financial situation and preferences when choosing a mortgage.
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Refinance Rates: Refinancing involves replacing an existing mortgage with a new one, often to take advantage of lower interest rates or adjust the loan term. Refinance rates are crucial for homeowners considering refinancing options.
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Rate Trends and Predictions: Analysts often make predictions about future rate movements based on economic forecasts, market trends, and central bank policies. Understanding these trends can help borrowers make informed decisions about their mortgages.
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Financial Advice: The article provides advice for consumers, such as the importance of shopping around for the best mortgage rates and understanding the potential savings associated with different loan options.
In summary, my expertise in finance and mortgage markets enables me to interpret and analyze the information provided in the article, offering insights into mortgage rates, market trends, and financial decision-making.
