Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
In 2024, prospective home buyers watched house prices rising, falling, then rising again. Many expected that the housing market will open when Federal Reserve they finally started lowering interest rates in September.
However, the mortgage prices They have remained high due to a shift in key economic factors: economic data and concerns that President-elect Donald Trump may raise rates. Home prices rose in the past two months but got off to a good start in December.
Today’s Average Mortgage Rates
| 30 years fixed – rate | 6.79% | (-0.01) ↓ |
|---|---|---|
| Fixed rate of 15 years | 6.11% | (-0.03) ↓ |
| 30-year fixed-rate jumbo | 6.96% | (0.00) |
| 5/1 ARM | 6.43% | (+0.04) ↑ |
| Fixed rate for 10 years | 6.02% | (+0.02) ↑ |
Today’s interest rate on Dec. 17, 2024, compared to one week ago. We use Bankrate’s collected data as a benchmark for U.S. lending. See all of today’s mortgage rates
The average 30-year fixed rate is 6.79% today, down from -0.01% last week. The average fixed rate of 15 years is 6.11%, which is a decrease of -0.03% compared to the previous week.
Due to low inflation and a weak job market, the Fed is set to raise interest rates by another 0.25% at its policy meeting on Dec. 18. Experts say it could be the last cut we see for a while. Depending on the economic policies of the next administration, house prices it could still fall in 2025, though rates are unlikely to drop below 6% for a while.
Check out CNET Money’s weekly interest rate for an in-depth look at the impact of the Fed’s rate cuts, unemployment and inflation.
Recent interest rate changes
Although the Fed affects the flow of credit, it it does not set it directly. Instead, interest rates tend to move ahead of the Fed, fluctuating daily based on various economic indicators, including inflation and employment data, changes in the bond market, investor expectations and global risks.
Late this summer, house prices it fell when economic indicators (increasing unemployment) led investors to believe that the Fed would start cutting rates aggressively. Until the central bank’s decline on Sept. At 18 percent, mortgage rates hit their lowest level in two years.
But shortly after the Fed’s September policy meeting, rates began to rise sharply due to strong economic indicators and the election of Donald Trump, whose economic policies could lead to a significant deficit and high inflation.
The prospect of higher interest rates for the government doesn’t bode well for long-term interest rates, such as 30-year mortgages, he said. Nicole RuethSVP of Rueth Group Supported by Movement.
While the 0.25% rate cut this month looks good, it won’t bring a similar or immediate drop in interest rates. In addition, the Fed is expected to delay rate hikes through 2025, he said Sam Williamsoneconomist at First American Financial Corporation, which could cause interest rates to rise.
To see the movement of housing costs over the past four years, see the chart below.
Will house prices fall this year?
Today’s homebuyers have less room in their budget to pay for a home due to high mortgage rates and low mortgage rates. Minimum home inventory and lower wages also help ability problems and reduce credit demands.
Where the rent comes in depends on how the economy fares in the coming weeks and months. Strong economic data often means higher housing prices. The opposite is true when we get weak data, such as rising unemployment or slowing inflation.
In ours 2025 mortgage predictionsexperts explained the amount of mortgage loans based on the economic conditions.
If the inflation rate decreases and the labor market is weakLoan rates will have a chance to fall, perhaps in 5%. But if Trump’s economic policies cause inflation to return, it could cause the Fed to delay further rate cuts. In this situation, mortgage rates can remain high or exceed 7%.
This is where some of the biggest mortgage brokers expect mortgages to come.
How do I choose a rental period?
Every loan has a loan period, or repayment period. Most mortgages are for 15 and 30 years, although 10, 20 and 40 year mortgages are also available. With fixed interest, the interest rate is fixed over the entire term of the loan, providing stability. With variable interest, the interest rate is fixed for a long period of time (usually five, seven or 10 years), after which the rate changes every year depending on the market. Fixed income mortgages are a better option if you want to stay in your home for a long time, but mortgage loans can offer you a lower interest rate up front.
30 year fixed lease
The 30 year fixed rate mortgage is 6.79% today. A 30-year fixed-term loan is the most common loan term. It usually has a higher interest rate than a 15-year mortgage, but you will have lower monthly payments.
15 year fixed lease
Today, the average 15-year interest rate is 6.11%. Although you will have a higher monthly payment than a 30-year fixed-rate loan, a 15-year loan often comes with a lower interest rate, which allows you to pay less interest in the end and pay off your loan sooner.
5/1 adjustable rate mortgages
A 5/1 ARM has a rate of 6.43% today. You will receive a low starting interest rate with a 5/1 ARM for the first five years of the home loan. But you may end up paying more after that, depending on how the rate changes each year. If you want to sell or renovate your home within five years, an ARM may be a good option.
Calculate your monthly payments
Getting a loan should always depend on your finances and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help home buyers plan their monthly payments.
How can I find the cheapest mortgage rates?
Although housing prices are high, the housing market will not be unaffordable forever. It’s always a good time to save up for a down payment and improve your credit score to help you get a competitive mortgage when the time comes.
- Save for more cashback: Although a 20% down payment is not required, a larger payment means taking out a smaller loan, which can help you save on interest.
- Boost your interest rate: You may qualify for a conventional loan with a credit score of 620, but a higher score of at least 740 will get you better rates.
- Pay off debt: Experts recommend a loan-to-income ratio of 36% or less to help you qualify for the best rates. Not taking out other loans will help you to pay your monthly bills.
- Loan search and assistance: Government-backed loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help you pay and close your accounts.
- Sell tenants: Researching and comparing multiple mortgages from different lenders can help you secure the lowest interest rate on your balance.
