This week brought encouraging news for the mortgage market, as mortgage rates have remained stable, continuing to hover near their 12-month lows. This stability follows the release of a positive Consumer Price Index (CPI) report, which suggests that inflation is cooling—a key factor in maintaining these attractive mortgage rates.
Understanding the CPI Report’s Impact on Mortgage Rates
The CPI report is a critical measure of inflation, tracking changes in the price of goods and services over time. A positive CPI report, like the one we saw this week, indicates that inflation is not rising as quickly as some had feared, making the market remain favorable. This is important because inflation and mortgage rates often move in tandem: when inflation rises, mortgage rates tend to follow suit, as lenders demand higher returns to compensate for the decreased purchasing power of future repayments. Conversely, when inflation cools, as it has recently, it can help keep mortgage rates in check or even lead to slight decreases.
Why This Is Good News for Buyers and Homeowners
For those in the market to buy a home or refinance an existing mortgage, the current environment presents a unique opportunity. With rates showing stability and remaining at or near their lowest levels in a year, locking in a mortgage now could result in significant savings over the life of the loan. Lower rates are a positive, and mean lower monthly payments, which not only makes homeownership more affordable but also increases buying power, allowing buyers to potentially purchase more expensive homes or secure better terms.
Homeowners considering refinancing can benefit from these low rates by reducing their monthly payments, shortening their loan term, or even accessing home equity at a lower cost. The current stability in mortgage rates provides a window of opportunity that might not last indefinitely, making it an ideal time to act.
What to Watch For Next Week
As we look ahead to the coming week, it’s important to stay informed about any further economic reports that could influence the mortgage market. While the recent CPI report has been positive and the market has shown stability, other indicators, such as employment data, consumer spending, or any unexpected global events, could still impact mortgage rates.
Next week, the market will be watching closely for any new data releases or policy announcements that could signal changes in the economic landscape. For now, however, the outlook remains optimistic, with mortgage rates holding steady at these historically low levels.
| Product | Rate | Last Week | Change |
| 30-year fixed | 5.942% | 5.99% | ⇩ 0.048 |
| 15-year fixed | 5.124% | 5.24% | ⇩ 0.116 |
| 30-year FHA | 5.49% | 5.624% | ⇩ 0.134 |
| 30-year VA | 5.624% | 5.74% | ⇩ 0.116 |
DISCLAIMER: ALL LOANS ARE SUBJECT TO CREDIT APPROVAL. INTEREST RATES ARE SUBJECT TO CHANGE DAILY AND WITHOUT NOTICE. CURRENT INTEREST RATES SHOWN ARE INDICATIVE OF MARKET CONDITIONS AND INDIVIDUAL QUALIFICATIONS AND WILL VARY UPON YOUR LOCK-IN PERIOD, LOAN TYPE, CREDIT SCORE, LOAN TO VALUE, PURPOSE, AND LENDING SOURCE.
DISCLAIMER: FOR NEW JERSEY PURPOSES, WE ARE NOT A LENDER AND CANNOT GUARANTEE THESE INTEREST RATES.
30-year fixed-rate mortgages
Presently, the 30-year fixed-rate mortgage sits at 5.942%, reflecting a drop of 4.8 basis points from the preceding week. Despite its interest rate being higher than that of the 15-year mortgage, the 30-year option is favored by many buyers for its advantage of providing more budget-friendly monthly payments.
15-year fixed-rate mortgages
The current interest rate for a 15-year fixed-rate mortgage is 5.124%, showcasing a decrease of 11.6 basis points from the week prior. Choosing a 15-year mortgage enables borrowers to pay back their loan repayment quicker compared to the 30-year option. While this leads to increased monthly payments, it substantially diminishes the total interest paid over the loan’s duration.
Use our free mortgage and amortization calculators to calculate your monthly payment, including insurance, taxes, and interest.