Having reached their highest point since 2000, mortgage interest rates recently experienced their most substantial weekly decline since July 2022. This significant drop, the most pronounced in over a year, resulted in the first uptick in mortgage demand in a month.
As per the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume increased by 2.5% last week compared to the previous week. Specifically, applications for home purchase mortgages rose by 3%. Joel Kan, the vice president and deputy chief economist at the MBA, attributed the rate decrease last week to factors such as the U.S. Treasury’s issuance update, the Federal Reserve adopting a dovish tone in the November FOMC statement, and data indicating a slower job market.
Applications to refinance a home loan experienced a 2% increase for the week but remained 7% lower than the same week one year ago. The Federal Reserve’s decision to pause its rate hike in the latest meeting, coupled with the Bureau of Labor Statistics’ October jobs report indicating fewer jobs added than expected, bodes well for mortgage rates. If the Fed continues its rate pause (or even considers a rate drop) in the upcoming meetings, and if the job market remains cool, there is potential for a continued downward trend in mortgage rates. The Fed’s last rate-setting meeting of the year is scheduled for December 12-13.
Mortgage rates experienced a dip midweek until slightly rising again across all loan products except for the 30-Year VA loan type.
| Product | Rate | Mid Week | Change |
| 30-year fixed | 7.56% | 7.46% | ⇧ – 0.10 |
| 15-year fixed | 6.92% | 6.85% | ⇧ – 0.07 |
| 30-year jumbo | 7.87% | 7.82% | ⇧ – 0.05 |
| 5/1 ARM | 7.21% | 7.19% | ⇧ – 0.02 |
| 30-year FHA | 6.91% | 6.82% | ⇧ – 0.09 |
| 30-year VA | 6.74% | 6.83% | ⇩ – 0.11 |
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.
30-year fixed-rate mortgages
Presently, the 30-year fixed-rate mortgage sits at 7.46%, reflecting a drop of 42 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.
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15-year fixed-rate mortgages
The current interest rate for a 15-year fixed-rate mortgage is 6.85%, showcasing a decrease of 39 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.
30-year jumbo mortgages
The interest rate for a 30-year jumbo loan has decreased by 19 basis points, currently resting at 7.82%. Jumbo loans generally carry higher interest rates due to their larger loan amounts. Nevertheless, the current rate aligns with the average for a 30-year fixed-rate mortgage.
5/1 adjustable-rate mortgages
Right now the interest rate for a 5/1 adjustable-rate mortgage (ARM) is 7.19%, indicating a 5 basis point decline from the preceding week. Generally, adjustable-rate mortgages feature lower interest rates in contrast to fixed-rate mortgages, with the current margin being to 27 basis points in relation to a 30-year fixed-rate mortgage.
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