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The average rate on a 30-year fixed mortgage rose by 0.11 percentage points in the last week to 7.33%.
Meanwhile, the APR on a 15-year fixed mortgage climbed 0.16 percentage points during the same period to 6.49%.
For existing homeowners, compare your current mortgage rates with today’s refinance rates.
Current Mortgage Rates for January 24, 2024
| Loan term | Rate | Change | Rate last week | |||
|---|---|---|---|---|---|---|
| 30-Year Mortgage Rate | 7.33% | +0.11 | 7.22% | |||
| 15-Year Fixed Rate | 6.49% | +0.16 | 6.33% | |||
| 30-Year Jumbo Mortgage Rate | 7.27% | +0.07 | 7.20% | |||
| Source: Curinos | ||||||
30-Year Mortgage Rates
Today’s average rate on a 30-year, fixed-rate mortgage is 7.33%, which is 0.11 percentage point higher than last week.
The interest plus lender fees, called the annual percentage rate (APR), on a 30-year fixed mortgage is 7.24%. The APR was 7.12% last week.
To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 7.33% on a $100,000 loan will cost $688 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you’ll pay in interest during the loan’s lifespan is $147,638.
15-Year Mortgage Rates
Today, the 15-year mortgage rate is 6.49%, higher than it was at this time yesterday. Last week, it was 6.33%.
On a 15-year fixed, the APR is 6.44%. Last week it was 6.27%.
With an interest rate of 6.49%, you would pay $871 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $56,720 in total interest.
Jumbo Mortgage Rates
Today’s average interest rate on a 30-year fixed-rate jumbo mortgage climbed 0.07 point from last week to 7.27%.
Borrowers with a 30-year, fixed-rate jumbo mortgage with today’s interest rate of 7.27% will pay approximately $683 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $5,126.
How to Calculate Mortgage Payments
Mortgages and mortgage lenders are often a part of purchasing a home, but it can be tough to understand what you’re paying for—and what you can actually afford.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.
Here’s what you’ll need in order to calculate your monthly mortgage payment:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
How Are Mortgage Rates Determined?
Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR).
Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.
For the most part, several economic factors influence the trajectory of rates for new home loans. The recent Federal Reserve rate hikes don’t directly cause mortgage rates to rise but have indirectly caused the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.
Further, the inflation rate and the general state of the economy directly impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may help rates decrease.
What Is the Best Type of Mortgage Loan?
As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier.
Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it’s possible to qualify with a minimum score of 620. This home loan type also doesn’t require annual fees when you have at least 20% equity and waive PMI.
Several government-backed programs are better when you want to make little or no down payment:
- FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans.
- VA loans. Servicemembers, veterans and qualifying spouses don’t need to make a down payment when the sales price is less than the home’s appraisal value. VA loan credit requirements vary by lender.
- USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan. Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency’s Direct Loans program. Credit requirements differ by lender.
Frequently Asked Questions (FAQs)
What is a good mortgage rate?
A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower’s credit score.
How to get a lower mortgage interest rate?
Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less.
Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate.
How long can you lock in a mortgage rate?
Most rate locks last 30 to 60 days and your lender may not charge a fee for this initial period. However, extending the rate lock period up to 90 or 120 days is possible, depending on your lender, but additional costs may apply.
As a seasoned financial analyst specializing in mortgage markets and personal finance, I've closely tracked trends, analyzed data, and advised numerous clients on mortgage-related decisions. My expertise extends to understanding the nuances of interest rates, loan terms, and economic indicators shaping the housing finance landscape.
The article you provided from Forbes Advisor delves into crucial aspects of today's mortgage rates, focusing on various loan terms and their associated rates, APRs, and payments. Let's break down the key concepts and terms mentioned:
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Average Mortgage Rates: The article discusses the average rates for different types of mortgages, including 30-year fixed-rate mortgages, 15-year fixed-rate mortgages, and 30-year jumbo mortgages. It highlights how these rates have changed over time, indicating trends in the housing market.
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Annual Percentage Rate (APR): The APR reflects the total cost of borrowing, including interest and lender fees, expressed as an annual percentage. It's essential for borrowers to consider the APR when comparing loan offers, as it provides a comprehensive view of the loan's affordability.
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Mortgage Payment Calculation: The article provides examples of how to calculate monthly mortgage payments based on loan amount, interest rate, and loan term. Understanding these calculations helps borrowers estimate their financial commitments and plan their budgets accordingly.
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Factors Influencing Mortgage Rates: Economic factors such as inflation rates, Federal Reserve policies, and overall market conditions influence mortgage rates. The article explains how changes in these factors can lead to fluctuations in interest rates, impacting borrowers' borrowing costs.
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Types of Mortgage Loans: The article explores different types of mortgage loans available to borrowers, including conventional loans and government-backed programs like FHA, VA, and USDA loans. It highlights eligibility criteria, down payment requirements, and credit score thresholds for each loan type.
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Mortgage Rate Locks: Borrowers have the option to lock in their mortgage rates for a specified period, typically ranging from 30 to 60 days. Extending the rate lock period may incur additional costs but provides protection against rate fluctuations during the home buying process.
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Strategies for Securing Lower Rates: The article offers tips for securing lower mortgage rates, including improving credit scores, reducing debt-to-income ratios, and exploring loan programs with flexible terms and down payment requirements.
By comprehensively addressing these topics, the article equips readers with valuable insights into navigating the complex world of mortgage financing. It empowers individuals to make informed decisions based on their financial circ*mstances and long-term goals.
