Today’s Mortgage Rates Rise Again – December 14, 2024

Navigating the current housing market requires an understanding of today's mortgage rates, which are pivotal for anyone looking to buy a home or refinance. On December 14, 2024, mortgage rates have increased slightly, highlighting the influence of economic fluctuations and upcoming Federal Reserve decisions. The 30-year fixed-rate mortgage has climbed to 6.42%, while the 15-year fixed rate is at 5.79%. This post will delve into these rates, the factors influencing them, and their implications for buyers and homeowners alike.

Today's Mortgage Rates Rise Again – December 14, 2024

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 adjustable-rate mortgage	7.07%
7/1 adjustable-rate mortgage	7.22%
30-year VA mortgage	5.89%
15-year VA mortgage	5.57%
5/1 VA mortgage	6.05%

Today's Mortgage Rates in Detail

As of today, 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. The fluctuations can be attributed to the rebound in the 10-year Treasury yield, as well as anticipation surrounding the Federal Reserve's rate decisions scheduled for December 18, 2024. While many predict a modest 25 basis point reduction, this has led to uncertainty about how it will impact the overall mortgage market moving forward.

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. This difference is influenced by the perceived risk associated with refinanced loans compared to new mortgages. Given the current environment, refinancing might still be an option worth considering for many homeowners, depending on their current mortgage terms.

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	– Rates are generally higher than shorter-term loans
15-Year Fixed Mortgage	– Lower interest rates	– Higher monthly payments
	– Pay off mortgage quicker, saving interest	– Less flexibility in budget due to higher payment amount
Adjustable-Rate Mortgage (ARM)	– Initial low interest rates	– Payments can become unpredictable after initial term
	– Potentially lower starting costs if you sell early	– Risk of significantly higher payments down the line

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. This trend continues with the 15-year fixed mortgage, which carries higher monthly payments but a significantly lower total interest cost over time.

On the contrary, an adjustable-rate mortgage (ARM) might begin with a lower rate, thus reducing initial monthly payments. However, the risk comes as rates can vary after the introductory period, leading to potentially higher payments in the future. For individuals planning to relocate before the ARM adjusts, this option can yield great savings. However, if you plan to stay long-term, the unpredictability may not be worth it.

Understanding the Impacts of Economic Factors on Today's Mortgage Rates

Several influencing factors contribute to the movement of mortgage rates. One primary driver is the performance of the 10-year Treasury yield, which impacts overall borrowing costs. As this yield rises, mortgage rates typically follow suit, reflecting higher investor risk premiums.

Additionally, the outlook surrounding the Federal Reserve's monetary policy plays an essential role. As the Fed prepares for potential meetings and updates, expectations of interest rate changes can lead to fluctuations in mortgage rates. Even minor adjustments, such as a predicted 25 basis point cut, can create ripples across the housing market, signaling potential future trends (Zillow).

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:

Consideration	Details
Comparing 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.

FAQs About Today's Mortgage Rates

• What is the current 30-year mortgage rate? The national average for a 30-year mortgage is 6.42% according to Zillow.
• Are interest rates expected to decrease? Mortgage rates are unlikely to drop significantly before the end of 2024, despite minor fluctuations.
• How to secure the lowest refinance rate? Improving your credit score and reducing your debt-to-income ratio can aid in securing lower rates.