This week, the mortgage rate market has given homeowners and prospective buyers something to smile about. After a slight decrease, mortgage rates have continued to hover near their 15-month lows, providing an excellent opportunity for those looking to purchase a new home or refinance their existing mortgage. With rates at these favorable levels, now is a prime time to lock in a low rate and secure long-term savings.
What’s Driving the Dip in Mortgage Rates?
Several factors have contributed to the slight decrease in mortgage rates this week. The most significant factor is ongoing economic data that continues to show stability in key areas like inflation and employment. When economic indicators point to a stable environment, lenders are more likely to offer lower rates, which we’ve seen reflected in the mortgage market this week. Another contributing factor is the Federal Reserve’s current monetary policy stance. With the Fed maintaining a cautious approach and signaling that they will not be raising interest rates aggressively in the near future, the mortgage market has responded with stability, allowing rates to remain low.
Why This Matters for Homebuyers
For prospective homebuyers, this decrease in mortgage rates is particularly significant. Lower rates directly translate into significantly saving on monthly payments, which can increase your purchasing power. For example, even a small reduction in interest rates can lead to saving thousands of dollars over the life of a 30-year mortgage. This means you might be able to afford a more expensive home or enjoy more manageable monthly payments on the home you’ve had your eye on. If you’ve been considering buying a home, now is an excellent time to take action and lock in your rate. The combination of low rates and potentially lower monthly payments can make homeownership more accessible and affordable.
Why Refinancing Now Makes Sense
Homeowners, or prospective refinancers, have their existing mortgage and should take note of this week’s dip in rates. Refinancing at a lower rate can reduce your monthly mortgage payments, shorten your loan term, or even allow you to tap into your home’s equity at a lower cost. With rates at 15-month lows, the potential savings from refinancing are substantial. If you’re currently locked into a higher interest rate, refinancing could be the key to freeing up more of your monthly income and achieving greater financial flexibility. However, it’s essential to act quickly. While rates are favorable now, the mortgage market can be unpredictable, and waiting too long could result in missing out on these low rates.
Looking Ahead
As we move into next week, the focus will shift to new economic data releases that could impact mortgage rates. While the current trend suggests that rates may remain low, any significant economic shifts or prospective changes in Federal Reserve policy could lead to fluctuations in the market. For now, the outlook remains optimistic, offering a great opportunity to lock in your rate as mortgage rates hold steady at 15-month lows. This is good news for both homebuyers and homeowners looking to refinance, as it suggests a stable and favorable environment in the mortgage market.
| Product | Rate | Last Week | Change |
| 30-year fixed | 5.874% | 5.942% | ⇩ 0.068 |
| 15-year fixed | 4.99% | 5.124% | ⇩ 0.134 |
| 30-year FHA | 5.249% | 5.49% | ⇩ 0.241 |
| 30-year VA | 5.249% | 5.624% | ⇩ 0.375 |
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 5.874%, reflecting a drop of 6.8 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 4.99%, showcasing a decrease of 13.4 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.