In early February, average mortgage rates surpassed 7% for the first time since early December.

The increase was fueled by strong labor data and suggestions from the Federal Reserve that rate cuts may come later than many expected. However, rates have still made significant downward progress since their peak of 8.01% last October.

If you're planning to buy a home, compare loan offers from multiple lenders to find the best rate for you.

See more information: Mortgage Rate Forecast: Experts Say Rates Could Fall Below 6% This Year

Most mortgage analysts predict rates will fall closer to 6% throughout 2024. But how mortgages move depends on economic data — particularly how much inflation slows — and when the Fed decides to start implementing rate cuts. interest.

During the January 30-31 meeting, the Fed opted to keep interest rates stable for the fourth time in a row. Although the Fed does not directly set mortgage rates, adjustments to the federal funds rate influence rates on consumer loans, including for home equity loans.

The Fed could potentially cut rates at its next meeting in March, but many experts anticipate a more cautious approach, especially as recent employment data has been stronger than expected. The central bank may not start cutting interest rates until early summer.

“If all goes well, by 2025 we could see mortgage rates closer to 6%, or perhaps even lower,” he said. Jacó Channelsenior economist at online lending marketplace LendingTree.

Current Mortgage and Refinance Rates

What are the current mortgage rates?

As of February 8, the average 30-year fixed mortgage rate was 7.10%, with an annual percentage rate of 7.11%. The average 15-year fixed mortgage rate is 6.52% with an APR of 6.55%. And the average 5/1 adjustable rate mortgage is 6.11% with an APR of 7.27%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

Current Mortgage Rates


products Interest rate APRIL
30-year fixed rate 7.16% 7.18%
30-Year Fixed-Rate FHA 6.40% 7.09%
30-Year Fixed Rate VA 6.65% 6.77%
30-Year Fixed-Rate Jumbo 7.22% 7.24%
20-year fixed rate 7.00% 7.02%
15-year fixed rate 6.56% 6.59%
15 Year Fixed Rate Jumbo 6.64% 6.65%
5/1 ARM 6.13% 7.27%
Jumbo 5/1 ARM 5.95% 7.01%
7/1 ARM 6.36% 7.24%
Jumbo ARM 7/1 6.10% 6.92%
10/1 ARM 7.18% 7.73%
30-Year Fixed-Rate Refinance 7.19% 7.21%
30-Year Fixed-Rate FHA Refinance 6.43% 7.14%
30-Year Fixed-Rate VA Refinance 6.57% 6.77%
30-Year Fixed-Rate Jumbo Refinance 7.24% 7.26%
20-Year Fixed-Rate Refinance 7.05% 7.07%
15-Year Fixed-Rate Refinance 6.57% 6.60%
15-Year Fixed-Rate Jumbo Refinance 6.63% 6.65%
5/1 ARM refinance 6.06% 7.15%
01/05 Jumbo ARM Refinance 5.98% 6.97%
ARM Refinance 01/07 6.29% 7.14%
Jumbo ARM 7/1 Refinance 6.08% 6.90%
ARM Refinance 01/10 7.21% 7.73%

Updated February 12, 2024.

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track daily trends in mortgage rates. The table above summarizes the average rates offered by lenders across the country.

What is a mortgage rate?

Your mortgage rate is the percentage of interest a lender charges for granting the loan needed to purchase a home. Several factors determine the rate offered. Some are specific to you and your financial situation, and others are influenced by macro market conditions such as inflation, the Fed's monetary policy, and general demand for loans.

What factors determine my mortgage rate?

While the overall economy plays a key role in mortgage rates, a few key factors within your control affect your rate:

  • Your credit score: Lenders offer the lowest rates available to borrowers with excellent credit scores of 740 and higher. Because lower credit scores are considered riskier, lenders charge higher interest rates to compensate.
  • The size of your loan: The size of your loan can affect the interest rate you qualify for.
  • The loan term: The most common mortgage is a 30-year fixed-rate loan, which spreads your payments over three decades. Shorter loans, like 15-year mortgages, typically have lower rates but higher monthly payments.
  • The type of loan: The type of mortgage you choose affects your interest rate. Some loans have a fixed rate for the life of the loan. Others have an adjustable rate that features lower rates at the beginning of the loan but can result in higher payments later on.

What is the annual percentage rate for mortgages?

The annual percentage rate, or APR, is generally higher than the loan's interest rate and represents the true cost of the loan. It includes the interest rate and other costs, such as lender fees or prepaid points. So while you might be tempted by an offer of “interest rates as low as 6.5%,” look at the APR to see how much you're really paying.

Pros and cons of getting a mortgage

Pros

  • You will build equity in the property instead of paying rent without equity.

  • You'll build your credit by making payments on time.

  • You may be able to deduct your mortgage interest on your annual tax bill.

Cons

  • You will take on considerable debt.

  • You'll pay more than the list price – potentially much more over the course of a 30-year loan – due to interest charges.

  • You'll have to budget for mortgage closing costs, which run into the tens of thousands of dollars in some states.

How does APR affect principal and interest?

Majority mortgage loans are based on an amortization schedule: you will pay the same amount every month for the life of the loan, but the interest generated will be higher at first and will decrease as the principal (the amount you borrowed) decreases. Your amortization schedule will show how much of your monthly payment goes toward interest and how much pays off principal. Most borrowers find a fixed, predictable monthly payment more convenient.

Mortgage lenders often publish their rates for different types of mortgages, which can help you research and determine where you will apply for pre-approval. But an advertised rate isn't always the rate you'll get. When shopping for a new mortgage, it's important to compare not only mortgage rates, but also closing costs and any other fees associated with the loan. Experts recommend researching and contacting multiple lenders to get quotes without rushing the process.

Common questions

Most conventional loans require a credit score of 620 or higher, but Federal Housing Administration and other loan types may accommodate borrowers with scores as low as 500, depending on the lender.

Your credit score isn't the only factor that affects your mortgage rate. Lenders will also look at your debt-to-income ratio to assess your risk level based on other debts you are paying off, such as student loans, car payments, and credit cards. Additionally, the loan-to-value ratio plays a key role in the mortgage rate.

A rate lock means your interest rate will not change between the offer and the time you close on the home. For example, if you lock in a rate of 6.5% today and your lender's rates rise to 7.25% in the next 30 days, you'll get the lower rate. A common rate lock period is 45 days, so you're still on a tight schedule. Be sure to ask lenders about rate lock windows and the cost to secure your rate.

Mortgage rates are always changing and it is impossible to predict the market. However, most experts believe that mortgage rates will gradually decline throughout 2024. Fannie Mae predicts that the average rate for a 30-year fixed mortgage will end the year at 5.8%.

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