Current Mortgage Rate Trends
On Wednesday, 30-year mortgage rates continued their downward trend, dropping by more than 0.1% from earlier in the week. This decline brings the average rate to 7.32%, offsetting some of the previous week’s climb to the mid-7% range. Most other loan types, whether for new purchases or refinancing, also experienced rate decreases or remained stable.
Best Rates Comparison
It’s crucial to compare rates across lenders as rates can vary significantly. Whether you are looking for a new mortgage or considering refinancing, shopping around for the best mortgage option is always a smart move.
Today’s Mortgage Rate Averages: New Purchase
30-year mortgage rates for new purchases saw a decrease of 2 basis points on Wednesday, further lowering the average to 7.32%. Despite rates remaining higher compared to earlier this year, they are considerably lower than the peak seen in October at 8.45%.
On the same day, 15-year new purchase loan rates also slightly declined to 6.66%. While rates have increased from the lows seen last year, they are still more affordable than the averages observed in the fall of 2023.
Most other new purchase averages remained stable on Wednesday, except for VA 30-year loans, which experienced a slight increase of 6 basis points.
The Weekly Freddie Mac Average
Freddie Mac’s weekly average for 30-year mortgage rates increased by 13 basis points, reaching 6.87% this week. While still elevated compared to earlier in the year, rates have come down significantly from the peak in late October.
Freddie Mac’s average differs from other sources due to their methodology, which includes loans priced with discount points. It’s important to note these distinctions when comparing rates.
Today’s Mortgage Rate Averages: Refinancing
Refinancing rates remained mostly flat or decreased for various loan types on Wednesday. The average for 30-year refinancing loans dropped by 8 basis points, widening the spread between new purchase and refi rates.
While most refinance categories showed stability, VA 30-year refi rates witnessed a slight increase of 2 basis points. Non-jumbo adjustable rate refi rates also saw marginal declines.
Factors Impacting Mortgage Rates
Mortgage rates are influenced by various macroeconomic and industry factors, including the bond market conditions, Federal Reserve policies, and competition among lenders.
Throughout recent years, the Federal Reserve’s actions, such as bond purchases and interest rate adjustments, have played a significant role in shaping mortgage rate trends.
What Influences Rate Changes
Due to the complex nature of mortgage rates, fluctuations can be driven by multiple factors concurrently, making it challenging to pinpoint a single cause.
Recent Fed policies, including tapering bond purchases and rate hikes, have had a notable impact on mortgage rates, leading to an upward trend in recent years.
Future Rate Forecasts
While the Fed has signaled intentions to lower rates in 2024, the exact trajectory remains uncertain. Market conditions, inflation levels, and economic indicators will play a crucial role in shaping future mortgage rate movements.
With upcoming Fed meetings, there is anticipation surrounding potential rate adjustments as policymakers navigate economic conditions and inflation concerns.
Mortgage Rate Tracking Methodology
The national rate averages provided consider various lender offerings, reflecting what borrowers can anticipate based on prevailing market conditions and qualification criteria. It’s important to be mindful of key factors influencing rate differences.
For state-specific rates, the lowest rates observed in each state under specific parameters are highlighted, giving insights into regional rate variations.
Correction – March 28, 2024: The Federal Open Market Committee meeting is scheduled for April 30 to May 1, 2024.
