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Average mortgage rates were mostly down compared to a week ago, according to data compiled by Bankrate. Average rates for 30-year fixed, 5/1 ARMs and jumbo loans decreased, while rates for 15-year home loans increased.
Mortgage rates could gradually come down this year, according to Greg McBride, CFA, Bankrate chief financial analyst. Rates drifted downward in November and December of 2023 as the Federal Reserve held off on raising rates further. The central bank now forecasts rate cuts in 2024 — a move that would have broad economic impact, including on the 10-year Treasury, the main driver of fixed mortgage rates.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says McBride. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.96% | 6.98% | -0.02 |
| 15-year fixed | 6.50% | 6.45% | +0.05 |
| 5/1 ARM | 6.12% | 6.13% | -0.01 |
| 30-year fixed jumbo | 6.98% | 7.00% | -0.02 |
Rates as of January 30, 2024.
The rates listed here are Bankrate's overnight average rates and are based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, January 30th, 2024 at 7:30 a.m.
30-year mortgage falls, -0.02%
The average rate you'll pay for a 30-year fixed mortgage today is 6.96 percent, down 2 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.05 percent.
At the current average rate, you'll pay a combined $662.62 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $1.34 lower.
15-year fixed mortgage rate increases, +0.05%
The average rate for a 15-year fixed mortgage is 6.50 percent, up 5 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $871 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 adjustable rate mortgage declines, -0.01%
The average rate on a 5/1 ARM is 6.12 percent, down 1 basis point from a week ago.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.12 percent would cost about $607 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.
Jumbo mortgage rate dips, -0.02%
The average jumbo mortgage rate is 6.98 percent, a decrease of 2 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was higher, at 7.12 percent.
At the average rate today for a jumbo loan, you'll pay a combined $663.96 per month in principal and interest for every $100,000 you borrow. That represents a decline of $1.34 over what it would have been last week.
Mortgage refinance rates
Current 30 year mortgage refinance rate increases, +0.01%
The average 30-year fixed-refinance rate is 7.15 percent, up 1 basis point since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 7.21 percent.
At the current average rate, you'll pay $675.41 per month in principal and interest for every $100,000 you borrow. That's up $0.68 from what it would have been last week.
Where are mortgage rates heading?
The Federal Reserve has signaled that it intends to cut rates in 2024, depending on inflation and employment data and other factors. The Fed meets again on Jan. 31.
As of mid-January, the average 30-year fixed rate mortgage sits at just under 7 percent. As the year progresses, expect rates to slowly trend downward, says McBride.
“Mortgage rates will spend the bulk of the year in the 6s, with movement below 6 percent confined to the back half of the year,” says McBride.
The rates on 30-year mortgages mostly follow the 10-year treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. Your rate might be higher or lower than what trends show, depending on your credit score and other factors.
What today's rates mean for your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent any time soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
"All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, senior economic analyst for Bankrate. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
- Expert poll: Mortgage rate trend predictions for this week
- The latest mortgage news for this week
- Compare current mortgage rates for today
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Introduction
As an expert and enthusiast, I have access to a vast amount of information on various topics, including finance and mortgage rates. I can provide you with accurate and up-to-date information based on the search results provided by You.com.
Bankrate's Promise and Key Principles
Bankrate is a trusted financial resource that has been helping people make smart financial decisions since 1976. They follow a strict editorial policy to ensure that their content is objective, accurate, and trustworthy [[1]].
Bankrate's key principles include:
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Editorial Integrity: Bankrate's award-winning editors and reporters create honest and accurate content to help readers make the right financial decisions. Their editorial team maintains a firewall between advertisers and themselves, and they do not receive direct compensation from advertisers [[1]].
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Editorial Independence: Bankrate's editorial team writes on behalf of the readers, and their goal is to provide the best advice to help readers make smart personal finance decisions. They follow strict guidelines to ensure that their editorial content is not influenced by advertisers [[1]].
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How Bankrate Makes Money: Bankrate.com is an independent, advertising-supported publisher and comparison service. They are compensated in exchange for the placement of sponsored products and services, or when readers click on certain links posted on their site. However, this compensation does not impact the objectivity and accuracy of their content [[1]].
Mortgage Rates According to Bankrate
According to the data compiled by Bankrate, here are the average mortgage rates as of January 30, 2024:
- 30-year fixed: 6.96% (decreased by 0.02% compared to the previous week)
- 15-year fixed: 6.50% (increased by 0.05% compared to the previous week)
- 5/1 ARM: 6.12% (decreased by 0.01% compared to the previous week)
- 30-year fixed jumbo: 6.98% (decreased by 0.02% compared to the previous week) [[2]]
Bankrate's chief financial analyst, Greg McBride, CFA, predicts that mortgage rates could gradually come down in 2024. He expects the 10-year Treasury yield, which serves as a baseline for fixed mortgage rates, to have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Federal Reserve gets closer to cutting rates. This portends a general downtrend in mortgage rates in 2024, albeit with fits and starts [[2]].
Mortgage Refinance Rates
Bankrate also provides information on mortgage refinance rates. As of the same date, the average 30-year fixed-refinance rate is 7.15%, which is an increase of 0.01% compared to the previous week [[2]].
Mortgage Rate Trends and Predictions
The Federal Reserve has signaled its intention to cut rates in 2024, depending on inflation, employment data, and other factors. Bankrate's chief financial analyst, Greg McBride, predicts that mortgage rates will spend the bulk of the year in the 6s, with movement below 6 percent confined to the back half of the year. However, it's important to note that mortgage rates change daily and can be influenced by various factors, including economic conditions and individual credit scores [[2]].
Importance of Shopping Around for Mortgage Rates
Bankrate emphasizes the importance of shopping around for the best mortgage rates. By getting at least three loan offers, borrowers can potentially save a significant amount of money on interest. Bankrate recommends considering different types of mortgage lenders, including online-only and local lenders, to find the best rate or lowest cost on a mortgage [[3]].
In conclusion, Bankrate is a trusted financial resource that provides objective and accurate information on mortgage rates and other financial topics. They follow a strict editorial policy and strive to help readers make smart financial decisions.
