Published February 15, 2024 at 9:24 AM UTC
Editor's Note: Blueprint may earn commission from affiliate partner links featured on this site. This committee does not influence the editor's opinions or ratings. See our full Advertiser Disclosure Policy.
Getty Images
Mortgage interest rates are on the rise across the board. Current average mortgage interest rates are:
- Fixed for 30 years: 7.50%
- Fixed for 15 years: 6.71%
- 30 year jumbo: 7.33%
*Accurate data at the moment February 14, 2024, latest data available.
30 year fixed mortgage rate
The current 30-year fixed mortgage rate is 7.50%, higher than last week's rate of 7.26%, according to data from Kyrinos. This is a significant increase from last month's 7.12%. At the same time last year, the 30-year fixed rate was 5.98%, and current rates are significantly higher than they were a year ago.
At the current 30-year fixed rate, you'll pay about $701 a month for every $100,000 you borrow, up from about $689 last week.
Ready to buy? Compare the best mortgage lenders
15 year fixed mortgage rate
The current 15-year fixed mortgage rate is 6.71%, slightly up from 6.45% last week. This is an increase from 6.27% last month. At the same time last year, the 15-year fixed rate was 5.35%, and current rates are significantly higher than they were a year ago.
At the current 15-year fixed rate, you'll pay about $886 a month for every $100,000 you borrow, up from about $872 last week.
30 year jumbo mortgage rate
The current 30-year jumbo mortgage rate is 7.33%, higher than last week's rate of 7.21%. This is an increase from 7.08% last month. The 30-year jumbo rate at the same time last year was 5.77%, and the current rate is about 2 percentage points higher than it was a year ago.
At the current 30-year jumbo rate, you'll pay about $693 per month for every $100,000 you borrow, up from about $686 last week.
methodology
To determine average mortgage rates, Curinos uses a standardized set of parameters. For a conventional mortgage, the loan amount is calculated based on his $350,000 owner-occupied one-unit property. For jumbo mortgages, the loan amount is $766,550. These calculations assume an 80% loan-to-value ratio, a credit score of 740 or higher, and a 60-day lock period.
Frequently asked questions (FAQ)
On May 3, 2023, the Federal Reserve announced third rate hike For the year, this time it will increase by 25 basis points. Although the Federal Reserve does not set mortgage interest rates, the recent hike in the federal funds rate could cause private financial institutions to raise their mortgage rates as well.
If you already have a mortgage, how this will affect your monthly payments will depend on whether your loan has a fixed or variable interest rate. Fixed interest rates remain the same over the life of your loan, so your payments will never change. However, adjustable interest rates can fluctuate based on market conditions, which can increase your monthly payments.
For example, if you take out a $250,000 ARM with an interest rate of 5.5%, your first monthly payment will be $1,719. However, after the initial period ends and your ARM converts to a variable rate, your payments may increase if interest rates rise. For example, if your interest rate increases by just 25 basis points (5.75%), your payment will increase to $1,750.
If you don't plan on keeping your home for a long time, an ARM may be a better option, especially if the interest rates on fixed-rate loans are much higher at the time. This is because ARMs tend to have lower starting interest rates than fixed-rate mortgages, but the interest rates can rise over time.
A fixed rate loan has the same interest rate throughout its term, whereas an ARM starts with a fixed rate for a certain period of time and then switches to a variable rate that can be changed for the remainder of the loan term. For example, a 5/1 ARM will have a fixed rate for five years (the “5” in 5/1), after which it will switch to a variable rate (the “1” in 5/1) that he can change once per year.
Whether a mortgage rate buydown is the right choice for you depends on your personal situation and financial goals. If you plan to live in the home for a long time and can afford the purchase price, it may make sense. However, if you know you'll move or refinance your mortgage before you break even on mortgage purchase costs and monthly payment reductions, it may not be worth buying down your interest rate. yeah.
Price buybacks can be permanent or temporary and affect your overall costs. A permanent buydown is also known as a purchase of mortgage discount points. Typically, for each point you pay 1% of the loan amount in exchange for a 0.25% discount on your interest rate.
On the other hand, with a temporary purchase, the interest rate drops to a certain point and then increases every year until it reaches the original interest rate. Common temporary options have 2-1 and 1-0 terms, where the first number is the amount of the interest rate reduction in the first year and the second number is the amount of the reduction in the following year. Unlike discount points, which are paid by the buyer, this type of buydown can be paid by the lender, seller, or home builder.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and you are encouraged to seek individual advice from a qualified professional regarding your specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. Any opinions, analyses, reviews, or recommendations expressed in this article are solely those of Blueprint editorial staff. Blueprint adheres to strict editorial integrity standards. Information is accurate as of the date of publication, but please always check the provider's website for the most up-to-date information.
