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Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews. Interest rates for the most popular 30-year fixed mortgage averaged around 6.47% in March 2024, according to Zillow data. Rates for 15-year mortgages, which are also relatively popular, were 5.88%. But rates have been higher in recent weeks. The average monthly mortgage payment is currently $2,883 for a 30-year fixed mortgage, based on recent home price and mortgage rate data. Mortgage rates are always changing, and there are a lot of factors that can sway your interest rate. Some of them are personal factors you have control over and some aren't. Most experts believe that mortgage rates will go down in 2024, though we may not see rates drop until later on in the year. See how mortgage rates are trending today. While average mortgage and refinance rates can give you an idea of where rates are currently at, remember that they're never a guarantee of the rate a lender will offer you. Mortgage interest rates vary by borrower, based on factors like your credit, loan type, and down payment. To get the best rate for you, you'll want to get quotes from multiple lenders. Multiple factors affect the interest rate you'll pay on a mortgage. Some are outside of your control. Others you can influence. Key determining factors that you do have control over include: No matter how good your finances are, you won't be able to get a rate that's dramatically lower than average. Rates are determined in large part by economic trends and how those trends affect investor demand for mortgage-backed securities. When there's a lot of economic growth, mortgage rates typically go up. In recent years, high inflation has pushed mortgage rates up. When growth is cooler, rates often go down. Federal Reserve policy can also influence mortgage rates. When the Fed raises or lowers the federal funds rate, mortgage rates can move up or down as well based on how investors believe Fed changes will impact the broader economy. Here's how the average mortgage interest rate has changed over time, according to data from Freddie Mac. Throughout 2020, the average mortgage rate fell drastically due to the economic impact of the COVID-19 pandemic. Thirty-year fixed mortgage rates hit a historic low of 2.65% in January 2021, according to Freddie Mac. Rates began to rise again in 2022. Most major forecasts expect rates to start dropping throughout the next few years, and they could ultimately end up somewhere in the 5% range. Rates can vary depending on where you live. Check the latest rates in your state at the links below. Alabama Purchase mortgage The rates you'll get on a mortgage used to purchase a home are often better than what you'll be quoted for a refinance. They differ by the loan's length in years, and whether the interest rate is fixed or adjustable. Two of the most popular types include: Mortgage refinance Mortgage refinance rates typically differ somewhat from purchase rates, and may be slightly higher — particularly if you're getting a cash-out refinance, since these are considered riskier. If you're considering a refinance, be sure to shop around with the best mortgage refinance lenders and get multiple rate quotes to be sure you're getting the best deal. Home equity line of credit (HELOC) and home equity loans HELOC rates and home equity loan rates are generally a little higher than rates on first mortgages, but they can still be worth it if you're looking to tap into your home's equity without having to take on a new rate on your main mortgage. As with other types of mortgages, you'll want to shop around and get multiple rate quotes to find the best HELOC lenders or home equity loan lenders. Snagging a lower rate can enable you to borrow more money, boosting your homebuying power. For example, say you can afford to spend $2,000 per month on your mortgage payment (not including taxes and insurance). With a rate of 7%, you could borrow around $300,000. But with a 4% rate, you could afford to borrow as much as $400,000. If you're buying when rates are high, you'll need to adjust your homebuying plans accordingly. You might need to lower your price range or make a larger down payment to achieve an affordable monthly payment. You should also be careful about overspending in a low rate environment. Though you may be able to borrow a larger amount with a low rate, make sure you aren't stretching your budget too far. You don't necessarily need to borrow the full amount the mortgage lender approves you for. One of the best ways to score a good rate is to get approved with two or three different lenders and compare the rates they offer you. If you're having trouble getting a good rate, you might want to work on improving your credit or saving for a larger down payment and reapply later. Your credit score can greatly affect the price you'll pay to borrow a mortgage. See Insider's picks for the best mortgage lenders » The higher your score is, the less you'll pay to borrow money. Generally, 620 is the minimum credit score needed to buy a house, with some exceptions for government-backed loans. Data from credit scoring company FICO shows that the lower your credit score, the more you'll pay for credit. Here's the average interest rate by credit level for a 30-year fixed-rate mortgage of $300,000, as of April 2024: According to FICO, only people with credit scores above 660 will truly see interest rates around the national average. Mortgage rates are expected to trend down eventually, but they likely won't recede until inflation decelerates further. Fannie Mae's latest forecast predicts that 30-year rates will fall to 6.4% by the end of the year. The Mortgage Bankers Association believes rates could drop to 6.1%. Mortgage rates are influenced by economic trends and investor demand for mortgage-backed securities. In March 2024, 30-year mortgage rates averaged 6.47%, and they've trended higher this month. Average mortgage rates nearly reached 8% in October of 2023, but they've since come down a bit. However, rates can vary a lot depending on your finances. If you have a lower credit score, you could still get a rate that's in or near the 8% range. Rates are expected to decrease this year, so we may not see average rates reach 8%. If you're planning to buy a house, you might not want to or be able to wait until rates drop. There can be benefits to buying when rates are high. You can often get a better deal on a home, since you won't be up against as much competition. The better your credit score, the better the rate you'll get on your mortgage. To access the best mortgage interest rates, aim to have a credit score at least in the 700s. Mortgage rates are up compared to where they were a year ago. To get a lower rate, you'll want to have a great credit score, a large down payment, and a low debt-to-income ratio. Mortgage interest rates are expected to fall soon, but when and how much depends on the path of inflation; if price growth continues to slow, rates should fall in the coming months. If inflation remains stubborn, we may have to wait a bit longer.
Liz Knueven Personal Finance Reporter Liz was a personal finance reporter at Insider.
Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma.
She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
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Laura Grace Tarpley, CEPF Personal Finance Reviews Editor Laura Grace Tarpley (she/her) is a senior editor at Personal Finance Insider. She oversees coverage about mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF).She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@businessinsider.com.
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Molly Grace Mortgage Reporter Molly Grace is a reporter at Business Insider. She covers mortgage rates, refinance rates, mortgage lender reviews, and homebuying for Personal Finance Insider.Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership.You can reach Molly at mgrace@businessinsider.com, or on Twitter @mollythegrace.
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