What is the average 30-year mortgage interest rate right now?
Originally Answered: Is 3.25 A good mortgage rate? That graph shows the mortgage rates since 1972. A 3.25% interest rate is near the all time low. So yes, you have a good rate, assuming you are talking about a 30 year fixed rate loan.
| Product | Today | Last Week |
|---|---|---|
| 30 Year Fixed Average | 6.67% | 6.57% |
| Conforming | 6.87% | 6.76% |
| FHA | 5.96% | 5.89% |
| Jumbo | 4.00% | 4.02% |
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.31% | 7.32% |
| 20-Year Fixed Rate | 7.16% | 7.19% |
| 15-Year Fixed Rate | 6.61% | 6.64% |
| 10-Year Fixed Rate | 6.49% | 6.52% |
Originally Answered: Is 3.25 A good mortgage rate? That graph shows the mortgage rates since 1972. A 3.25% interest rate is near the all time low. So yes, you have a good rate, assuming you are talking about a 30 year fixed rate loan.
30 Year Mortgage Rate in the United States averaged 7.73 percent from 1971 until 2024, reaching an all time high of 18.63 percent in October of 1981 and a record low of 2.65 percent in January of 2021.
The bottom line. Sure, mortgage rates could fall to 3% at some point, but chances are that's not going to happen anytime soon. Moreover, waiting for rates to drop before you buy your home could backfire. Instead, consider buying your house now and refinancing your mortgage when rates improve.
The National Association of Realtors expects mortgage rates will average 6.8% in the first quarter of 2024, dropping to 6.6% in the second quarter, according to its latest Quarterly U.S. Economic Forecast. The trade association predicts that rates will continue to fall to 6.1% by the end of the year.
- Better: 3.89%
- Bank of America: 4.20%
- Citibank: 4:23%
- Amerisave: 4.31%
- PNC Bank: 4.33%
- DHA Mortgage Company: 4.41%
- Home Point Financial: 4.42%
- JP Morgan Chase: 4.43%
As inflation comes down, mortgage rates will recede as well. Most major forecasts expect rates to go down throughout 2024.
Inflation and Fed hikes have pushed mortgage rates up to a 20-year high. 30-year mortgage rates are currently expected to fall to somewhere between 5.8% and 6.1% in 2024. Instead of waiting for rates to drop, homebuyers should consider buying now and refinancing later to avoid increased competition next year.
What if I lock in a rate and it goes down?
If interest rates go up after you've locked in your rate, you get to keep the lower rate. On the other hand, if you lock your rate and interest rates fall, you can't take advantage of the lower rate unless your rate lock includes a float-down option.
Ideally, you'll be able to buy when both interest rates and home prices are low. If that's not possible, calculate both the short- and long-term costs of a lower interest rate versus a lower purchase price. Make your move when the numbers make the most sense.
- Shop for mortgage rates. ...
- Improve your credit score. ...
- Choose your loan term carefully. ...
- Make a larger down payment. ...
- Buy mortgage points. ...
- Lock in your mortgage rate. ...
- Refinance your mortgage.
Spurred by the Great Inflation, the 30-year fixed mortgage rate reached a pinnacle of 18.4 percent in October 1981, according to Freddie Mac. Once the Fed reined in inflation, the 30-year rate seesawed down to the 9 percent range, closing the decade at 9.78 percent.
Mortgage rates have been historic in their own right during the past few years. The average 30-year fixed rate reached an all-time record low of 2.65% in January 2021 before surging to 7.79% in October 2023, according to Freddie Mac.
2021: The lowest 30-year mortgage rates ever
By July 2020, the 30-year fixed rate fell below 3% for the first time. And it kept falling to a new record low of just 2.65% in January 2021.
Average 30-Year Fixed Rate
After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023. Many experts and industry authorities believe they will follow a downward trajectory into 2024.
A “good” mortgage rate is different for everyone. In today's market, a good mortgage interest rate can fall in the mid-6% range, depending on several factors, such as the type of mortgage, loan term, and individual financial circ*mstances.
Our Chart of the Day is from Goldman Sachs, which plots the firm's expectation that the 30-year mortgage rate will stay above 6% through 2025. Goldman said it expects 30-year mortgage rates will drop to 6.3% by the end of 2024, and fall slightly in 2025 to 6% as the Fed starts to cut interest rates.
You can lock in your interest rate as soon as you've been approved for the mortgage, though you may not always want to do so immediately. Closing on the home could take several weeks, and you want to be sure that you have ample time to complete the homebuying process before your lock-in policy's expiration date.
What will mortgage rates be in May 2024?
May 2024: A Steady Path
May follows a steady path in 15-Year Mortgage Rates, featuring a maximum interest rate of 7.24%, a minimum of 6.82%, and an average for the month at 7.03%.
Legally speaking, there's no limit to how many times you can refinance your mortgage, so you can refinance as often as it makes financial sense for you. Depending on your lender and the type of loan, though, you might encounter a waiting period — also called a seasoning requirement.
Yes, to some degree, mortgage interest rates are negotiable. Mortgage lenders have some flexibility when it comes to the rates they offer. However, in many cases getting a lower rate on your loan will come with a price, such as paying “points” to get a lower rate.
Don't accept the first rate you're quoted — it pays to shop around, a recent Freddie Mac study found. For a $300,000, 30-year mortgage, getting a 6 percent rate instead of a 6.5 percent one, for example, could save you nearly $1,200 a year, and nearly $6,000 over five years.
| Product | Interest Rate | APR |
|---|---|---|
| 20-Year Fixed Rate | 7.14% | 7.16% |
| 15-Year Fixed Rate | 6.62% | 6.65% |
| 10-Year Fixed Rate | 6.42% | 6.45% |
| 5-1 ARM | 6.18% | 7.33% |
