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avigating today's housing market requires an understanding of current mortgage rates, which play a pivotal role in buying or refinancing a home. As of December 14, 2024, mortgage rates have increased slightly due to economic fluctuations and upcoming Federal Reserve decisions. The 30-year fixed-rate mortgage has reached 6.42%, while the 15-year fixed rate stands at 5.79%. This article will delve into these rates, their influencing factors, and implications for buyers and homeowners.
Key Takeaways:
* Mortgage Type: Current Rate (%)
+ 30-year fixed mortgage: 6.42%
+ 20-year fixed mortgage: 6.20%
+ 15-year fixed mortgage: 5.79%
+ 5/1 ARM: 7.07%
+ 7/1 ARM: 7.22%
+ 30-year VA mortgage: 5.89%
+ 15-year VA mortgage: 5.57%
+ 5/1 VA: 6.05%
Today's Mortgage Rates in Detail:
Mortgage rates are edging upward, influenced by multiple economic factors. According to Zillow, the national averages for mortgage rates are as follows:
* Mortgage Type: Current Rate (Fixed)
+ 30-year fixed mortgage: 6.42%
+ 20-year fixed mortgage: 6.20%
+ 15-year fixed mortgage: 5.79%
+ 5/1 ARM: 7.07%
+ 7/1 ARM: 7.22%
+ 30-year VA mortgage: 5.89%
+ 15-year VA mortgage: 5.57%
+ 5/1 VA: 6.05%
These rates reflect an increase compared to earlier benchmarks this month, attributed to the rebound in the 10-year Treasury yield and anticipation surrounding the Federal Reserve's rate decisions scheduled for December 18, 2024.
Current Mortgage Refinance Rates:
For homeowners considering refinancing, here are today's average refinance rates:
* Refinance Type: Current Rate (%)
+ 30-year fixed refinance: 6.51%
+ 20-year fixed refinance: 6.23%
+ 15-year fixed refinance: 5.84%
+ 5/1 ARM refinance: 7.76%
+ 7/1 ARM refinance: 7.18%
+ 30-year VA refinance: 5.80%
+ 15-year VA refinance: 5.58%
+ 5/1 VA refinance: 5.24%
Refinance rates tend to hover slightly higher than initial purchase rates, influenced by the perceived risk associated with refinanced loans compared to new mortgages.
Fixed vs. Adjustable Mortgage Rates:
When considering which mortgage option to pursue, understanding the differences between fixed and adjustable-rate mortgages (ARMs) is critical:
* Mortgage Type: Pros/Cons
+ 30-Year Fixed Mortgage: Lower monthly payments, higher overall interest costs due to longer term, predictable payment structure.
+ 15-Year Fixed Mortgage: Lower interest rates, higher monthly payments, pay off mortgage quicker, saving interest.
+ Adjustable-Rate Mortgage (ARM): Initial low interest rates, payments can become unpredictable after initial term, potentially lower starting costs if you sell early.
Fixed-rate mortgages provide stability in monthly payments, making budgeting easier. With a 30-year fixed mortgage, the borrower enjoys lower payments spread across a longer timeline. On the contrary, an ARM might begin with a lower rate, thus reducing initial monthly payments, but the risk comes as rates can vary after the introductory period.
Understanding the Impacts of Economic Factors on Today's Mortgage Rates:
Several influencing factors contribute to the movement of mortgage rates, including the performance of the 10-year Treasury yield and the outlook surrounding the Federal Reserve's monetary policy. As the Fed prepares for potential meetings and updates, expectations of interest rate changes can lead to fluctuations in mortgage rates.
Buying Considerations in the Current Market:
Given the current state of mortgage rates, this is a crucial time for potential homebuyers. Here are key aspects to consider:
* Considering Historical Rates: Current rates are lower than last December.
* Reduced Competition: Winter months often see less buyer activity.
* Future Rate Predictions: Rates are expected to remain stable, if not higher.
Overall, the market appears favorable for buyers relative to the past couple of years. With relatively stable mortgage rates compared to historical highs, the winter months may offer advantageous purchasing conditions as competition can wane during this season.
