Best Mortgage Rates For 2024 & Predictions For 2023-24

Mortgage interest rates December 2024

Mortgage interest rates are caught between rising inflation, which pushes rates up, and the Federal Reserve's efforts to keep inflation low, which indirectly pushes mortgage interest rates down.

The Federal Reserve raised the benchmark interest rate for the first time in March and in July increased it by 75 basis points, the largest increase since 1994.

According to a July 20 estimate by Freddie Mac economists, "The Federal Reserve raised the benchmark federal funds rate by 1.5 percentage points through the first half of 2024, and markets have priced in further aggressive rate hikes." As a result, mortgage rates have fluctuated in recent weeks.

Most housing market analysts believe that rates will fluctuate widely through the end of the year due to these market factors and Fed policies. For example, according to Freddie Mac, average rates on 30-year fixed-rate mortgages reached 5.81 percent at the end of June, but have since stabilized at 5.55 percent. However, this rate is still double the 2.86 percent recorded a year earlier.

Experts forecast that the 30-year fixed rate will fluctuate between 5 percent and 6 percent in 2024:

• Mortgage Bankers Association (MBA): "We continue to forecast a 50 percent risk of a mild recession in the next 12 months, given the poor GDP forecast. In such a case, employment is expected to rise to 5.5 percent by the end of 2023 and mortgage rates would fall about 30 basis points from the projected base level [of 5.2 percent].
• Lawrence Yun, chief economist of the National Association of Realtors (NAR): "The peak of mortgage rates for this year may have already been reached in mid-June, around 6 percent. In a climate of uncertain inflation, rates have since been exceeded. As gasoline prices continue to fall, consumer price inflation may have already peaked. As a result, the 30-year mortgage rate may stabilize around 5.5 percent for the rest of the year.
• Danielle Hale, Chief Economist at Realtor.com: "As for mortgage rates, we expect upward pressure, but with much less vigor. Mortgage interest rates are currently near 5.5 percent. And until the end of 2024, we expect them to be between 5.5 percent and 6 percent."
• According to Freddie Mac, 30-year fixed rates will generally be 5 percent in 2024 and drop to 5.1 percent in 2023.

Mortgage refinance rates - Is it still possible to refinance?

Americans regularly monitor mortgage rates; if they fall even a little, more people will try to get a mortgage. According to MBA data, rates are still significantly higher than a year ago, but applications are hovering around the lowest point in 20 years.

Although some refinancing solutions can reduce monthly repayments, not all of them result in lower overall interest costs. For example, if you go from a 26-year mortgage at 5 percent to a 30-year mortgage at 4 percent, you will pay more than $13,000 more in interest.

Because closing costs can deplete your funds if you sell your home shortly after refinancing, you must also consider how long you intend to stay in your home. Depending on the lending institution, closing costs for a refinance range from 2 percent to 5 percent of the loan amount. Therefore, you should aim to keep your home long enough to cover these costs and benefit from better refinance rates.

Remember that in addition to your credit rating, debt-to-income (DTI) ratio, loan-to-value (LTV) ratio, and proof of regular income, the rate for which you qualify depends on a number of other criteria.

As average rates for 30- and 15-year fixed-rate mortgages have risen, refinancing has become somewhat more expensive today. If you are considering switching to a 10-year mortgage, be aware that average rates have also increased.

Here are the current refinance rates:

Mortgage refinance rates

Current Mortgage Rates - Trends

The average APR for the benchmark 30-year fixed-rate mortgage rose from 6.37% yesterday to 6.42% today. Last week, the 30-year APR was 6.14 percent. The 15-year fixed-rate mortgage currently has an average APR of 5.73%. The APR for a 15-year fixed-rate mortgage was 5.47% at the same time last week. The APR is used for rate quotation.

The 30-year fixed-rate jumbo mortgage has an average APR of 6.42%. The average APR for a 5/1 adjustable-rate mortgage. Last week, the average APR for a 5/1 ARM was 6.30%.

Citizens Mortgage Rates.

Meridian mortgage rates

First Tech Mortgage Rates

Mortgage rates Security Service

Forecast for 2023 mortgage rates

Although mortgage rates are expected to decline in 2023, potential buyers should not necessarily postpone their purchase because of the possibility of lower financing costs.

• According to a new estimate released by state lender Fannie Mae, borrowers will learn that "mortgage rates are falling" in the coming year. The rate on a 30-year fixed-rate mortgage is expected to fall to an average of 4.5 percent in 2023.
• This dynamic would suit would-be homebuyers who have seen mortgage rates soar this year.
• The Federal Reserve began raising interest rates in March to combat persistently high inflation. As a result, it has raised consumer borrowing costs, which will likely see a boost after 2020 when rates stabilize at historically low levels.
• According to Fannie Mae, average rates will rise from 5.2 percent in the second quarter of this year. They are expected to fall to 4.7 percent and 4.4 percent in the first and fourth quarters of 2023.
• However, Keith Gumbinger, vice president of market research firm HSH, advises consumers to "take the estimates with a grain of salt."
• According to Gumbinger, interest rates are important, but they may not be the most determining factor for those in the market.

Mortgage delinquency rates 2024

According to the latest national delinquency survey published by the Mortgage Bankers Association, delinquency rates hit an all-time low in the second quarter of 2024, standing at a seasonally adjusted rate of 3.64 percent of all outstanding residential loans (MBAs).

Default rates 2024 were down 47 basis points from the first quarter 2024 and down 183 basis points year-on-year.

What will mortgage rates be in 2024?

Here are the most accurate predictions from several economists:

Mortgage Bankers Association (MBA): "As spreads tighten, mortgage rates are expected to end 2024 at 4.8 percent and gradually decline to 4.6 percent by 2024."

According to NAR's Yun, the 30-year fixed mortgage rate is expected to reach 5.3%-5.5% by the end of the year. By the end of the year, some consumers may opt for a five-year adjustable-rate mortgage (ARM) at 4 percent.

According to Matthew Speakman, senior economist at Zillow, "competing factors suggest there will be little reason for mortgage rates to fall soon."

How can I get the best mortgage rates and the best lender?

Comparing lenders online is not much different from comparing banks or credit unions with a physical branch. Before making a decision, borrowers should compare mortgage lenders by looking at the features that are most important to them.

The most important factors for most borrowers to consider are mortgage rates, fees, types of loans, and creditworthiness. You can start by reading reviews and doing research on the Internet, but many lenders do not list their fees or interest rates on their website, so you may have to fill out an application or call to get a quote.

Mortgage discounts, borrower requirements, and other unique features that distinguish a lending institution are other elements that can be found on a lending institution's website. For example, rate matching guarantees or specialized technology simplify the application process.

In addition, lenders will offer you a higher interest rate the better your credit. So do your best to improve your credit rating by doing as much as you can to pay off credit card balances and other personal debts.

Current mortgage rates for December 2024

According to Bankrate.com, the average rate for a 30-year fixed mortgage is 6.41%, while the average rate for a 15-year mortgage is 5.71%. The average rate for a 5/1 ARM is 4.85%, while the average rate for a 30-year jumbo mortgage is 6.42%.

Interest rate for a 30-year fixed mortgage

Today the average rate for a 30-year fixed-rate mortgage is 6.41%, up 0.28% from the previous week. One of the best mortgage rates, or the lowest in 52 weeks, was 5.26 percent, while the highest was 6.41 percent.

The annual percentage rate of charge (APR) for 30-year fixed mortgages, which includes interest and financing costs, is 6.42 percent. Last week the APR was 6.14 percent.

To get an idea of how much interest you might be paying, consider that a 30-year fixed-rate mortgage at 6.41% for a $100,000 loan costs $626 per month in principal and interest (excluding taxes and fees), according to Forbes Advisor's mortgage calculator. Over the life of the loan, interest payments totaling $125,418 will accumulate.

15-year mortgage interest rate.

The average interest rate on a 15-year fixed-rate mortgage is 5.71 percent. Although the interest rate was 5.44 percent on the same date last week, the current rate exceeds the 52-week low of 4.62 percent.

The APR for a 15-year fixed-rate mortgage is 5.73 percent. At this time last week it was 5.47%.

For every $100,000 borrowed at an interest rate of 5.71%, you will have to pay $828 per month in principal and interest. In total you will have to pay $48,089 in interest over the life of the loan.

Interest rates for jumbo mortgages

Today the average interest rate on a 30-year fixed-rate jumbo mortgage increased 0.29 percent from the previous week to 6.42 percent. Compared to the 52-week low of 5.19%, this represents an increase of 1.23%.

With a 30-year fixed-rate jumbo mortgage at the current 6.42 percent interest rate, borrowers will pay $627 in principal and interest for every $100,000 borrowed. The monthly principal and interest payment for a $750,000 jumbo mortgage would be about $4,701.

Today's variable-rate mortgage interest rate of 5/1

Today the typical interest rate for a 5/1 adjustable-rate mortgage is 4.85 percent, up 0.25 percent from the previous week. Over the past 52 weeks, the lowest rate for a 5/1 adjustable-rate mortgage has been 4.11 percent, while the highest rate has been 4.85 percent.

With a mortgage interest rate of 4.85 percent, borrowers will pay $528 per month in interest and principal on a $100,000 loan.

Current mortgage interest rates

Today's mortgage interest rate