Mortgage Rates 9/19/24: What You Need to Know About Current Rates and Economic Factors

As of September 19th, 2024, the current average 30-year fixed mortgage rate is 6.5%, which is a slight increase from the previous week.

The Federal Reserve has been raising interest rates to combat inflation, and this has had a ripple effect on mortgage rates.

This rate increase will likely impact the affordability of homes, making it more challenging for buyers to qualify for a mortgage.

The good news is that some mortgage options, such as adjustable-rate mortgages, may offer lower rates, but they come with the risk of rate hikes in the future.

The average 30-year fixed-rate mortgage rate has climbed 10 basis points to 5.99%. This is a slight reversal after sinking to 5.89% Tuesday, the cheapest 30-year average since September 2022.

Rates on 30-year mortgages are still more than a full percentage point below July's high of 7.08%. They're also more than 2 percentage points below the historic 23-year peak of 8.01% reached in October 2023.

Take a look at this: Bank 5 Mortgage Rates

Here's a snapshot of current mortgage rates:

Rates on 15-year mortgages had also sunk to a two-year low point on Tuesday but have now risen 12 basis points to a 5.09% average.

The current mortgage rates on September 19, 2024, are a topic of interest for many homebuyers and refinancers.

The average 30-year fixed mortgage rate is 6.32%.

A 1% difference in mortgage rate can result in thousands of dollars in savings over the life of a loan.

The 15-year fixed mortgage rate is 5.83%, which is significantly lower than the 30-year rate.

Homeowners who refinance to a lower rate can save money on their monthly payments.

A 20% down payment can help homeowners qualify for better mortgage rates.

Take a look at this: 30-year Fixed Mortgage Rates with 800 Credit Score

Saving money on your mortgage is a top priority for many homeowners, and refinancing can be a great way to do just that.

Refinancing to a lower 30-year mortgage rate can lead to significant savings. For example, on a $350,000 home with a 20% down payment, opting for a 5.59% interest rate instead of 6.09% can save you $32,421 in interest over the life of the loan.

Discover more: Mortgage Refinancing Activity Rises as Rates Drop.

If you're looking for the lowest mortgage rate available, consider your credit score. A higher credit score can lead to even more savings – in this case, boosting your score from 620-639 to 760-850 could save you an extra $1,996.

Here are the estimated savings from refinancing to different interest rates:

Mortgage rates are influenced by the Federal Reserve's decisions on interest rates, which can impact the overall economy. The Fed raised interest rates in March 2022 to combat inflation.

The 30-year fixed mortgage rate was 6.31% in 2022, the highest in over 15 years. This rate is significantly higher than the 3.22% rate seen in 2021.

A 1% increase in mortgage rates can reduce a borrower's purchasing power by 10%. This means that with higher rates, buyers may need to adjust their budgets or consider different loan options.

The 5-year Treasury yield, a key indicator of mortgage rates, has been steadily increasing since 2020. This increase is partly due to the Fed's efforts to control inflation.

A 0.25% increase in mortgage rates can save a borrower $20 per month on a $200,000 mortgage. This may not seem like a lot, but it can add up over the life of the loan.

Curious to learn more? Check out: Inflation Report Mortgage Rates Today

You can lock in a mortgage rate to guarantee your interest rate won't increase. Some lenders lock your rate upfront, but you might need to request it from others.

You can also let your rate float for now if you think rates will drop. If you think the Fed is likely to lower the federal funds rate, waiting a bit after the meeting to lock in your rate might be a good idea.

You'll usually have 30, 45, or 60 days to complete the transaction after locking in your rate. If you lock your rate, you won't have to worry about interest rates going up.

It's a good idea to ask your lender about its rate lock extension and rate float-down policies before locking in your rate. This way, you'll know if there's an option to lower your rate if rates drop after you lock.

Explore further: Does Rocket Mortgage Have Good Rates

The weekly average of 30-year mortgage rates fell 11 basis points to 6.09% this week, the lowest since February 2023.

This reading is based on Freddie Mac's calculation, which blends five previous days of rates, and is different from our daily reading, which offers a more precise and timely indicator of rate movement.

Freddie Mac's average last October reached a historic 23-year peak of 7.79%, a stark contrast to this week's reading.

The Weekly Freddie Mac Average is a key indicator of mortgage rate trends. It's published every Thursday by Freddie Mac, a government-sponsored buyer of mortgage loans.

The current average is 6.09%, which is the lowest weekly average since February 2023. This reading fell 11 basis points from the previous week.

Freddie Mac's average is different from the rates we report because it's a weekly average that blends five previous days of rates. In contrast, our daily reading provides a more precise and timely indicator of rate movement.

The criteria for included loans also varies between Freddie Mac's methodology and our own. This means the rates we publish won't compare directly with teaser rates you see advertised online.

Teaser rates are often cherry-picked as the most attractive, but they may involve paying points in advance or be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan.

Curious to learn more? Check out: Quicken Loans Refi Rates

Economic factors play a significant role in determining market trends, and understanding these factors can help you make informed decisions.

Inflation is a key economic factor that affects interest rates. The Federal Reserve aims to keep inflation in check by influencing interest rates, and when yearly inflation exceeds 2%, the Fed raises the federal funds rate to slow spending and curb inflation.

Low unemployment can contribute to inflation as it gives workers more power to command higher wages, which can drive prices up and lead to higher interest rates.

Global events, such as disease outbreaks, political unrest, and extreme weather, can impact the availability of goods and labor, leading to higher prices and potentially higher interest rates.

Loan demand can also impact interest rates, as high demand for mortgages can overwhelm lenders, causing them to increase their interest rates.

Interest rates can vary by state due to differences in regulations and business costs, with lenders charging more in certain states to offset higher expenses.

Related reading: Canadian Bond Yields Impact Mortgage Rates

Here are some key economic factors to consider: