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• Mortgage rates on November 17, 2024 hover around 6.60%.
• Rates have been elevated thanks to strong economic data, changing expectations for Fed cuts and the election.
• The next move in rates depends on how the economy develops in the coming months.

Mortgage Rates began rising rapidly in October, and for most of November they remained in the mid-to-high 6% range, according to Zillow data.

Strong economic data, shifting expectations for future Federal Reserve rate cuts and the bond market’s response to the presidential election have kept rates high. Where they go next depends on the job market, inflation and how the Fed responds to new economic data.

The Fed has cut the federal funds rate twice this year, and another cut could come in December. However, in a recent speech, Fed Chairman Jerome Powell said that the Fed can afford to take their time with future discounts.

“The economy is not sending any signals that we need to hurry to lower rates,” Powell said. “The strength we are seeing in the economy right now gives us the ability to approach our decisions with caution.”

The labor market still appears to be resilient and inflation remains slightly above the Fed’s 2% target. Additionally, many economists worry that some of President-elect Donald Trump’s proposed policies could reignite inflation and send Treasury yields higher. This could lead to higher mortgage rates in 2025.

What are the current mortgage rates?

What are the current refinancing rates?

Mortgage calculator

Use our free mortgage calculator to see how current interest rates will affect your monthly payments.

By clicking on ‘More details’ you will also see how much you will pay over the life of your mortgage, including how much goes towards principal versus interest.

Current 30-year mortgage rates

Average 30-year mortgage rates oscillate around 6.60%, according to Zillow data. Rates have increased significantly over the past month, averaging around 6.24% in October.

The 30-year fixed-rate mortgage is the most popular home loan. With that type of mortgageyou’ll repay what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

The long 30-year term allows you to spread your payments over a longer period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would get with shorter terms, such as a 15-year mortgage.

Current 15-year mortgage rates

Average 15-year mortgage rates are about 6%, according to Zillow data. In October, 15-year rates averaged 5.56%, but they have been higher in recent weeks.

If you want the predictability of a fixed rate, but are looking to spend less on interest over the life of your loan, a 15-year fixed rate mortgage could be right for you. Since these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than if you had a longer term.

Current Mortgage Refinancing Rates

Refinancing rates are also high. As of October, 30-year refinance rates averaged 6.35%, while 15-year refinance rates were around 5.67%. They are even higher this month.

How much do mortgage rates have to go down to refinance?

If you’re wondering if you should refinance now, you’ll need to crunch the numbers to see if it makes sense. Some experts advise only refinancing if you can lower your rate by a percentage point or more, but it really depends on whether it’s right for your personal situation.

If you can save enough each month by refinancing to recoup your costs in a reasonable amount of time, it might be worth it. You can calculate this by dividing your closing costs by the amount you save on your monthly payment mortgage payment. So, if you paid $3,000 for a refinance and were able to lower your monthly payment by $200, it would take you 15 months to break even on your refinance.

5-year mortgage rate trends

Here’s how 30- and 15-year mortgage rates have changed over the past five years, according to data from Freddie Mac.

What factors influence mortgage rates?

Mortgage rates are determined by a variety of different factors, including broader economic trends, Federal Reserve policy, your current state mortgage ratesthe type of loan you get and your personal financial profile.

Although many of these factors are beyond your control, you can work on improve your credit scorepay off your debts and save for a larger down payment to ensure you get the best possible rate.

How does the Fed rate affect mortgage rates?

The Fed increased the federal funds rate dramatically in 2022 and 2023 in an attempt to slow economic growth and control inflation. Inflation has since slowed considerably, but it still remains slightly above the Fed’s 2% target rate.

Mortgage rates are not directly affected by changes in the federal funds rate, but they often tend to rise or fall ahead of Fed policy decisions. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often influenced by how investors expect Fed policy to affect the economy in its entirety.

Fed officials lowered rates at their September and November meetings, and they are expected to continue cutting them at future meetings. This should help mortgage rates fall.

Will mortgage rates drop in November 2024?

Mortgage rates rose last month, but where they move next depends on many unknowns. We will therefore need more data to see the evolution of inflation and the labor market. So far this month, rates have remained relatively stable. Don’t expect substantial declines in November unless the economic outlook changes.

How low will mortgage rates go?

Mortgage rates are unlikely to fall back to the historic lows of 2020 and 2021, when 30-year fixed rates fell below 3%. But rates are expected to continue to fall over the next couple of years, and it’s possible they will eventually stabilize closer to 5% in a few years.

Will mortgage rates fall in 2025?

Most major forecasts predict mortgage rates will fall throughout 2025 as the Fed continues to lower its benchmark rate. But because mortgage rates are influenced by the economy, this forecast could change depending on how the economy performs in 2025.