Following a welcome slide in August and September, mortgage rates resurged over the course of October and into November.
Rates began their descent in late summer in anticipation of the Federal Reserve finally cutting its key policy rate at its September meeting. At its November meeting, the Fed cut the federal funds rate by 25 basis points. One basis point is one one-hundredth of a percentage point. More Fed rate cuts are widely anticipated, which could, once again, indirectly influence mortgage rate declines. However, the frequency and size of cuts will depend on economic and employment data.
To help you stay informed, Forbes Advisor delivers the latest average weekly and daily rates on the most popular mortgages, empowering you to make the best financial decisions on your home-buying journey.
What Are Today’s Average Mortgage Rates?
30-year fixed-rate mortgage:
- Today. The average APR for the benchmark 30-year fixed mortgage fell to 7.24%.
- Last week. 7.24%.
15-year fixed-rate mortgage:
- Today. The average APR on a 15-year fixed mortgage is 6.38%.
- Last week. 6.33%
30-year fixed-rate jumbo mortgage:
- Today. The average APR on the 30-year fixed-rate jumbo mortgage is 7.32%.
- Last week. 7.04%.
Today’s Mortgage Interest Rates by Term
Curinos uses its own standardized parameters, such as a $350,000 conventional mortgage loan. Jumbo mortgage rates are based on $750,000 loans. These daily mortgage rate calculations assume an 80% LTV ratio, a credit score of at least 740 and a 60-day lock period.
| LOAN TERM | INTEREST RATE | APR | MONTHLY P&I PER $100,000 |
|---|---|---|---|
| 30-Year Fixed | 7.22% | 7.24% | $682 |
| 15-Year Fixed | 6.34% | 6.38% | $864 |
| 30-Year Jumbo | 7.29% | 7.32% | $687 |
Weekly Average Mortgage Rate Trends
The Freddie Mac Primary Mortgage Market Survey (PMMS) reflects rates for first-lien, conventional, conforming purchase mortgages with a loan-to-value (LTV) ratio greater than 75 and less than or equal to 80 and a credit score of at least 740 based on applications from lenders across the country submitted to Freddie Mac when a borrower applies for a mortgage.
Forbes Advisor Average Mortgage Rates for November 2024
After a promising downward trend, mortgage rates got spooked in October and began climbing again amid election anxieties and strong economic and jobs data ahead of the next federal interest rate decision in November.
Following its decision to cut its key interest rate by 50 basis points in September, the Federal Reserve lowered the fed funds rate by an additional 25 basis points at its November meeting. Though mortgage rate activity is likely to be volatile in the coming weeks, experts say rates are unlikely to surge to the highs of earlier this year. Compare rates and terms among the best mortgage lenders to find a deal that fits your unique situation.
What should consumers do when mortgage rates go down?
Christy Bunce
Advisory Board Member
Phil Crescenzo
Advisory Board Member
Caroline Basile
Mortgages and Student Loans Deputy Editor
When homeowners see that mortgage rates are decreasing, they should call a trusted loan officer to see if a refinance makes sense for them financially. There are so many variables that are in play when a consumer is contemplating a refinance. For instance, there are a lot of consumers out there today who have amassed a decent amount of revolving debt, so even a very small mortgage rate decrease could help them save a lot of money doing a cash-out refinance and consolidating their debt.
If a consumer is just looking to do a rate-and-term refinance and does not have the need to consolidate debt, a good rule of thumb to consider is if the rate is going down at least 0.25% to 0.50%, they should strongly consider a refinance, assuming the points and fees for that type of rate drop are not exorbitant.
Advisory Board Member
When mortgage interest rates decrease, the first step a consumer should take is to determine how this change may affect their current home-buying experience. Since information is readily available on mobile devices, notifications, online ads, TV, etc. this can cause added anxiety around the process or even a fear of missing an opportunity. An alert over a rate reduction or rate drop for a minimal rate decrease may not be worth changing course or switching an institution (in some cases).
Get the facts and details before making any quick decisions.
Advisory Board Member
If rates drop and you decide to buy a home, there’s another way to get an even lower interest rate: buying discount points. Mortgage discount points are prepaid interest and can help home buyers reduce their rate by paying up front. Each point typically lowers an interest rate by 0.25 percentage points. For example, purchasing one point would lower a mortgage rate of 6% to 5.75%. The cost of a point is usually 1% of the total mortgage amount.
Mortgages and Student Loans Deputy Editor
Insights From Economists: Detailed Predictions for Interest Rates in November 2024
- Bright MLS chief economist Lisa Sturtevant. “Mortgage rates will fall further during the second half of the year, but it will not be a steady decline through year’s end. There will be some ups and downs.”
- William Raveis Mortgage regional vice president Melissa Cohn. “The peak in mortgage rates is behind us, but mortgage rates are not going to decline as fast as everyone would like them to”
- First American deputy chief economist Odeta Kushi. “Mortgage rates are notoriously difficult to forecast because they’re tied to the wider economy and global geopolitical events. However, there are indications that mortgage rates could gradually decline through the remainder of the year.”
- Zillow Home Loans chief economist Orphe Divounguy. “At this point, I don’t expect to see significant declines in mortgage rates through the end of the year. However, we are likely to see some more volatility. While inflation is expected to keep moderating, any unexpected changes in labor market conditions could trigger more mortgage rate volatility as investors reassess their forecasts for economic growth and the path of Fed policy.”
Read more
How Today's Interest Rates Affect Your Monthly Payments
If you know how much you’re borrowing, what type of loan you’re getting and how many years you have to pay it back, you can use a mortgage calculator to check your monthly payment at different interest rates.
For instance, if you have a starting loan balance of $425,000 on a 30-year fixed-rate mortgage, here’s approximately what you can expect to pay in principal and interest every month, excluding taxes, mortgage insurance, homeowners insurance and HOA fees:
- At a 5% interest rate. $2,281 in monthly payments (excluding taxes, mortgage insurance, homeowners insurance and HOA fees)
- At a 6% interest rate. $2,548 in monthly payments (excluding taxes, mortgage insurance, homeowners insurance and HOA fees)
- At a 7% interest rate. $2,828 in monthly payments (excluding taxes, mortgage insurance, homeowners insurance and HOA fees)
- At an 8% interest rate. $3,119 in monthly payments (excluding taxes, mortgage insurance, homeowners insurance and HOA fees)
How To Get the Best Mortgage Rate Today
Though lenders decide your mortgage rate, there are some proactive steps you can take to ensure the best rate possible. For example, advanced preparation and meeting with multiple lenders can go a long way. Even lowering your rate by a few basis points can save you money in the long run.
Here are some other ways you can improve your chances of getting the best deal:
- Take stock of your financial situation. Before you fall in love with your dream home, you better make sure you can afford the monthly payments and other homeownership costs. For instance, start by looking at your debt-to-income (DTI) ratio—aka your total monthly debts against your monthly earnings—to determine how much home you can afford.
- Review your credit score. Lenders look at your credit score to evaluate the risk you pose as a borrower. A higher score gives you a better chance at scoring favorable mortgage terms. Paying down balances, limiting new credit cards and loans and checking your credit report for errors can all work towards raising your score.
- Meet with several lenders. You don’t have to go with the first lender quote you receive. You can shop around to find the best loan to fit your needs—research various mortgage lenders and different loans you might qualify for to put yourself in a stronger position once you are ready to buy a home.
- Crunch the numbers with a mortgage calculator. Once you know which type of loan you qualify for, you can estimate your monthly payments by punching your numbers into various mortgage calculators, such as a 30-year fixed mortgage calculator or mortgage amortization calculator.
- Save money. The more you put down on a home, the less you’ll need to borrow from a lender. This means lower monthly payments and more savings over the life of the loan.
What Affects Current Mortgage Rates?
- Federal Reserve monetary policy. Mortgage rates are indirectly influenced by the Federal Reserve’s monetary policy. When the central bank raises the federal funds target rate, as it did throughout 2022 and 2023, that has a knock-on effect by causing short-term interest rates to go up. In turn, interest rates for home loans tend to increase as lenders pass on the higher borrowing costs to consumers.
- Lenders. A lender with physical locations and a lot of overhead may charge higher interest rates to cover its operating costs and make a profit on its mortgage business. On the other hand, lenders that operate solely online tend to offer lower mortgage rates because they have less fixed costs to cover.
- Your credit. Your individual credit profile also affects the mortgage rate you qualify for. Borrowers with a strong credit history and good score (at least 680) usually receive a lower interest rate, while borrowers with a poor credit score—whom lenders consider high risk—are typically charged a higher interest rate.
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How To Compare Current Mortgage Rates
Comparison shopping often leads to finding the lowest rates. To get started, you can compare rates and different lender offerings online. Pay attention to the fine print on the websites to see how those rates are determined. For the most accurate quote, you’ll need to apply for a mortgage through various lenders or go through a mortgage broker.
Applying for a mortgage on your own is straightforward and most lenders offer online applications, so you don’t have to drive to a physical location. Additionally, applying for multiple mortgages in a short period of time won’t affect your credit score as each application is counted as one query within a 45-day window.
Finally, when you’re comparing rate quotes, be sure to look at the APR, not just the interest rate. The APR reflects the total cost of your loan on an annual basis and any discount points being charged.
Forbes Advisor's Insight on Current Mortgage Rates and the Housing Market
Predictions indicate that home prices will remain elevated throughout 2024 while new construction continues to lag behind. This will put buyers in tight housing situations for the foreseeable future.
To cut costs, that could mean some buyers would need to move further away from higher-priced cities into more affordable metros. For others, it could mean downsizing, or foregoing amenities or important contingencies like a home inspection. However, be careful about giving up contingencies because it could cost more in the long run if the house has major problems not fixed by the seller upon inspection.
Another important consideration in this market is determining how long you plan to stay in the home. People buying their “forever home” have less to fear if the market reverses as they can ride the wave of ups and downs. But buyers who plan on moving in a few years are in a riskier position if the market plummets. That’s why it’s so important to shop at the outset for a realtor and lender who are experienced housing experts in your market of interest and who you trust to give sound advice.
Frequently Asked Questions (FAQs)
What’s the difference between APR and interest rate?
The interest rate is the cost of borrowing money whereas the APR is the yearly cost of borrowing as well as the lender fees and other expenses associated with getting a mortgage.
The APR is the total cost of your loan, which is the best number to look at when you’re comparing rate quotes. Some lenders might offer a lower interest rate but their fees are higher than other lenders (with higher rates and lower fees), so you’ll want to compare APR, not just the interest rate. In some cases, the fees can be high enough to cancel out the savings of a low rate.
When will mortgage rates go down?
In April 2024, the Mortgage Bankers Association (MBA) forecast mortgage rates to hit 6.4% this year. However, rates currently average a few basis points above MBA’s forecast. The average weekly mortgage rate reached 6.79% for the week ending November 7, according to Freddie Mac, surging weekly over the course of October and into November but remaining lower than October 2023, when they peaked at 7.79%.
The MBA expects rates to hit 5.9% in 2025 and 5.5% in 2026, which home buyers and homeowners haven’t experienced since mid-2022.
Why are mortgage rates so high?
Mortgage rates are so high due to a number of economic factors. Supply chain shortages related to the pandemic and Russia’s war on Ukraine caused inflation to shoot up in 2021 and 2022. A resilient economy and robust job market also drive inflation higher and increase demand for mortgages.
When inflation increases, the U.S. Federal Reserve raises its interest rate target for overnight lending between banks, and interest rates throughout the financial sector typically follow suit. From March 2022 to July 2023, the Fed raised its policy rate 11 times, leading to a surge in mortgage rates. A change in demand for 10-year Treasury bonds and mortgage-backed securities also contributed to 2023’s higher rates.
However, on September 18, the Federal Reserve cut the benchmark rate by 50 basis points for the first time in four years. Expect to see lower mortgage rates as we move toward 2025.
When should you lock in your mortgage rate?
When you receive a mortgage loan offer, a lender will usually ask if you want to lock in the rate for a period of time or float the rate. If you lock it in, the rate should be preserved as long as your loan closes before the lock expires.
If you don’t lock in right away, a mortgage lender might give you a period of time—such as 30 days—to request a lock, or you might be able to wait until just before closing on the home.
Once you find a rate that is an ideal fit for your budget, it’s best to lock in the rate as soon as possible, especially when mortgage rates are predicted to increase. While it’s not certain whether a rate will go up or down between weeks, it can sometimes take several weeks to months to close your loan.
If you don’t lock in your rate, rising interest rates could force you to make a higher down payment or pay points on your closing agreement in order to lower your interest rate costs.
How long can you lock in a mortgage rate?
Locks are usually in place for at least a month to give the lender enough time to process the loan. If the lender doesn’t process the loan before the rate lock expires, you’ll need to negotiate a lock extension or accept the current market rate at the time.
Even if you have a lock in place, your interest rate could change because of factors related to your application such as:
- A new down payment amount
- The home appraisal came in different from the estimated value in your application
- There was a sudden decrease in your credit score because you are delinquent on payments or took out an unrelated loan after you applied for a mortgage
- There’s income on your application that can’t be verified
Talk with your lender about what timelines they offer to lock in a rate as some will have varying deadlines. An interest rate lock agreement will include: the rate, the type of loan (such as a 30-year, fixed-rate mortgage), the date the lock will expire and any points you might be paying toward the loan. The lender might tell you these terms over the phone, but it’s wise to get it in writing as well.
What are points on a mortgage rate?
Mortgage points represent a percentage of an underlying loan amount—one point equals 1% of the loan amount. Mortgage points are a way for the borrower to lower their interest rate on the mortgage by buying points down when they’re initially offered the mortgage.
For example, by paying upfront 1% of the total interest to be charged over the life of a loan, borrowers can typically unlock mortgage rates that are about 0.25% lower.
It’s important to understand that buying points does not help you build equity in a property—you simply save money on interest.