Mortgage Rates Update: September 30, 2024 - Stability in Rates with Minor Fluctuations

As of September 30, 2024, mortgage rates have shown slight fluctuations, maintaining a relatively steady trend. According to Curinos, the average rate for a 30-year fixed mortgage has increased by 0.02 percentage points, now standing at 6.67%. In contrast, the APR for a 15-year fixed mortgage has decreased by 0.05 percentage points to 5.69%.

For homeowners considering refinancing, it’s essential to compare your current mortgage rates with today’s refinance rates. The average rate on a 30-year fixed mortgage has decreased from 6.69% yesterday to 6.67% today, while just a week ago, it was at 6.65%. The APR for the 30-year fixed mortgage is currently at 6.69%, up from 6.63% last week, highlighting the importance of understanding APR when evaluating mortgage options.

With the current interest rate of 6.67%, borrowers taking out a 30-year fixed-rate mortgage of $100,000 can expect to pay approximately $643 per month in principal and interest, excluding taxes and fees. Over the life of the loan, this would amount to around $131,560 in total interest.

On the other hand, the 15-year fixed-rate mortgage is currently at 5.69%, down from 5.74% last week. The APR for this mortgage type is 5.72%, slightly up from 5.69% a week earlier. Borrowers opting for a 15-year fixed-rate mortgage at this interest rate will pay about $827 monthly on a $100,000 loan, resulting in a total interest payment of approximately $48,877.

For jumbo loans, the average interest rate for a 30-year fixed-rate jumbo mortgage has risen to 6.75%, an increase of 0.06 percentage points from the previous week. This rate has seen a 52-week low of 5.50% and a high of 10.50%. A 30-year jumbo mortgage at the current rate will incur a monthly payment of $648 for every $100,000 borrowed. For a $750,000 jumbo mortgage, the monthly payment would be around $4,863.

When considering homeownership, budgeting is crucial. A mortgage calculator can help prospective buyers estimate their monthly payments and total costs associated with homeownership. Factors influencing how much you can afford include your income, debt, and various financial metrics.

Mortgage interest rates are influenced by several factors, including:

• Federal Reserve Actions: Changes in the Fed's rates directly impact the benchmark interest rates that banks offer.
• Bond Market Trends: Mortgage rates are loosely tied to long-term bond yields, particularly the 10-year U.S. Treasury Bond.
• Economic Conditions: A robust economy may lead to higher rates due to increased consumer demand, while a weakening economy may result in lower rates.
• Inflation: Rising inflation can prompt lenders to increase rates to maintain profitability.

To secure a lower mortgage rate, borrowers should focus on improving their financial profiles by considering:

• Credit Score: A score of 670 or higher typically qualifies for better rates, while a minimum score of 620 is often required.
• Debt-to-Income (DTI) Ratio: A DTI below 43% is advisable for better loan terms.
• Loan-to-Value (LTV) Ratio: Keeping your LTV below 80% can help avoid private mortgage insurance (PMI).
• Loan Term: Shorter loan terms generally come with lower rates.
• Type of Residence: Primary residences often have lower rates compared to second homes or investment properties.

When comparing lenders, it’s beneficial to obtain quotes for various loan programs, as they may offer different rates and requirements. Conventional mortgages typically provide competitive rates for those with credit scores between 670 and 850, while government-backed programs like FHA, VA, and USDA loans offer options for those with lower down payments.

In summary, while mortgage rates have seen minor fluctuations, understanding the factors that influence these rates can empower borrowers to make informed decisions about their home financing options.