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Current Mortgage Interest Rates

Mortgage rates today: Wednesday, January 24, 2024

As of Wednesday, January 24, 2024, mortgage interest rates have experienced changes across various loan types. These rates are provided by Zillow and are subject to fluctuations based on economic factors. Here’s a breakdown of the current rates:

  • 30-Year Fixed-Rate Mortgage:
    • Average Interest Rate: 6.697% APR
    • Change: +16 basis points
    • Compared to one week ago: +15 basis points
    • Compared to one year ago: +35 basis points
  • 15-Year Fixed-Rate Mortgage:
    • Average Interest Rate: 5.927% APR
    • Change: +13 basis points
  • 5-Year Adjustable-Rate Mortgage:
    • Average Interest Rate: 7.79% APR
    • Change: +5 basis points

These mortgage rates are expressed as an annual percentage rate (APR), and a basis point represents one one-hundredth of one percent. The fluctuations in mortgage rates are influenced by various economic factors, including changes in inflation expectations, job creation, and overall economic growth.

Why mortgage rates change every day:

Mortgage rates exhibit daily fluctuations based on the broader economic landscape. Factors such as changes in inflation expectations, job creation, and overall economic growth contribute to the movement of mortgage rates. Generally, rates rise during periods of economic strength and fall during economic downturns.

These daily mortgage rates provide an average of published APRs with the lowest points from major national lenders. The APR includes mortgage origination fees and discount points, offering a comprehensive view of the total costs associated with obtaining the loan.

Personalized versus average interest rates:

The interest rate you receive on your mortgage may differ from the rates advertised on lenders’ websites. Advertised rates often assume specific conditions, such as buying a primary home, a single-family house, a substantial down payment, and out-of-pocket payment of closing costs. Your personalized rate considers your unique circumstances, such as refinancing, property type, down payment amount, and financial details.

Lenders determine personalized rates during the mortgage preapproval process, taking into account various factors to provide an estimate tailored to your situation.

How your credit score affects your rate:

Your credit score is important for determining your mortgage interest rate. Lenders use a risk-based pricing approach, where a higher credit score indicates lower default risk, resulting in a better interest rate. Contrastingly, a lower credit score may lead to a higher interest rate.

When you should lock your mortgage rate:

Securing a mortgage rate lock involves your lender committing to uphold a designated interest rate until the loan concludes, provided there are no alterations to your application. Opting for a rate lock is prudent when you find the monthly payments acceptable at the agreed-upon rate, effectively contributing to your goal of saving money. Keep in mind that rate locks come with expiration dates, and not closing before the lock expires may lead to a higher interest rate, potentially impacting your saving money-saving efforts.

Today’s rates for specific kinds of mortgages:

Mortgages come in various terms and types, including conventional, FHA, VA, and jumbo loans. The most common terms are the 30-year fixed-rate mortgage, the 15-year fixed, and the 5-year adjustable-rate mortgage. Each type has its unique characteristics, offering different durations and interest rate structures.

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