The average rate for a 30-year fixed-rate mortgage is 6.85% today, down 0.07% from last week. For a 15-year fixed mortgage, the average rate is 6.29%, down 0.12% from the previous week. A 5/1 adjustable-rate mortgage (ARM) has an average rate of 6.43%.
When choosing a mortgage, consider the term and type. A 30-year fixed mortgage has higher interest rates but lower monthly payments. A 15-year fixed mortgage has higher monthly payments but lower interest rates, meaning you pay less interest over the life of the loan.
ARMs offer lower initial rates, but the rate adjusts annually after the fixed period ends, which carries the risk of higher payments. Mortgage rates surged from near-record lows at the pandemic’s start to current levels due to aggressive interest rate hikes by the Federal Reserve to curb inflation. The high rates, steep home prices, and stagnant wage growth have tightened budgets for many prospective homebuyers.
Experts predict mortgage rates will gradually decrease over the coming months, but this relies on upcoming economic data, including inflation and labor figures.
Mortgage rates decrease预计
Some analysts anticipate the Fed could begin lowering rates in September or November 2024, potentially bringing mortgage rates to around 6.5% by year-end.
To find the best mortgage rates, save for a bigger down payment, boost your credit score, pay off debt, and research loans and assistance programs. Shopping around and comparing offers from multiple lenders can also help you find the most competitive rate. If you plan on buying a home shortly after the Fed meeting, experts recommend shopping around for rates now and revisiting them after the meeting, working on improving your credit score, and determining which mortgage product you plan to use.
Whether locking in a mortgage rate now is wise depends on your financial situation. If you can afford a mortgage at today’s rates, it might be prudent to secure a rate now to avoid potential increases. However, some experts believe mortgage rates might fall by 0.25% to 0.75% as the market anticipates a Fed rate cut.
Ultimately, the decision to buy a new home shouldn’t be tied to the Fed. If you are considering a purchase now and it fits your budget, experts advise going ahead. Even if rates fall after you purchase a home, you can always consider refinancing.
