As we close out 2024, mortgage rates remained unchanged and steady from last week, marking a stable end to a year of ups and downs in the housing market. For buyers and homeowners alike, this consistency offers a moment to reflect and plan as we transition into the opportunities of the new year.
Why Are Rates Steady This Week?
This week’s rate stability is due to a lack of major economic surprises. With no significant shifts in inflation data, employment figures, or Federal Reserve announcements, the market has settled into a steady rhythm to close out the year.
For real estate professionals, this consistency can encourage more buyers to act, knowing rates remain favorable compared to historical averages.
What to Expect for Mortgage Rates in 2025
As we look ahead to the new year, several factors could influence mortgage rates:
Federal Reserve Policies
The Federal Reserve’s approach to interest rates will remain a key driver. While 2024 saw the Fed pause rate hikes, their next steps could influence borrowing costs significantly.
Economic Indicators
Keep an eye on key data such as inflation rates and job reports. Positive economic trends could drive rates higher, while signs of a slowdown might lead to rate declines.
Seasonal Demand
The spring housing market often brings increased activity. As more buyers enter the market, demand could affect rates, particularly in competitive areas.
What Does This Mean for Buyers and Homeowners?
- For Buyers:
Now is a good time to get pre-approved and prepare for 2025’s market. A steady rate environment gives you clarity as you plan your budget.
- For Homeowners:
Consider refinancing or tapping into your home’s equity if rates remain favorable.
Thank you for staying connected with us throughout 2024. Your dedication to staying informed about mortgage rates, trends, and opportunities is key to navigating the real estate market confidently.
As we turn the page to 2025 and a new year, we look forward to bringing you timely updates, expert insights, and valuable strategies to help you succeed in your real estate goals. Wishing you a happy and prosperous New Year!
| Product | Rate | Last Week | Change |
| 30-year fixed | 6.375% | 6.375% | +/- 0.0 |
| 15-year fixed | 5.49% | 5.49% | +/- 0.0 |
| 30-year FHA | 5.874% | 5.874% | +/- 0.0 |
| 30-year VA | 5.874% | 5.874% | +/- 0.0 |
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 6.375%, reflecting a rise/drop of 0 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 5.49%, showcasing an increase/decrease of 0 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.
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