The national average for a 30-year fixed mortgage is currently 6.90%, a minor decrease of one basis point from the previous day, according to the latest data from Zillow. This rate is also down three basis points compared to last week’s average of 6.93%.
Other key mortgage products also saw declines. The average 15-year fixed mortgage rate fell to 5.95%, while the 5-year adjustable-rate mortgage (ARM) saw a more significant drop to 6.98%.
Today’s National Rate Snapshot
For borrowers with strong credit (740 or higher) and a down payment of at least 20%, today’s average rates for conforming loans present a nuanced picture:
| Loan Program | Current Interest Rate | 1-Day Change | 1-Week Change |
|---|---|---|---|
| 30-Year Fixed | 6.90% | Down 0.01% | Down 0.03% |
| 15-Year Fixed | 5.95% | Down 0.02% | Down 0.06% |
| 5-Year ARM | 6.98% | Down 0.17% | Down 0.36% |
This data underscores a period of slight moderation in rates, giving potential buyers a small window of opportunity. While the movements are not drastic, they reverse some of the upward trends seen in previous months.
How Different Loan Types Compare
Beyond conventional loans, rates for government-backed and jumbo loans also shifted:
- FHA Loans: The 30-year fixed FHA rate is currently 6.92%.
- VA Loans: Offering one of the most competitive rates, the 30-year fixed VA loan stands at 6.47%.
- Jumbo Loans: For larger loan amounts, the 30-year fixed jumbo rate is averaging 7.16%.
These variations highlight the importance for borrowers to explore the specific loan types for which they qualify.
Expert Strategies to Secure a Lower Rate in Today’s Market
While market rates provide a benchmark, the rate you are offered depends heavily on your personal financial situation. Housing experts consistently advise that even a small rate reduction can save you tens of thousands of dollars over the life of a loan.
Here are five actionable steps you can take to get the best possible mortgage rate:
- Shop Around Extensively: Don’t settle for the first offer. Obtain official Loan Estimates from at least three different lenders (including national banks, local credit unions, and online mortgage companies) to compare rates and, just as importantly, the Annual Percentage Rate (APR), which includes fees.
- Boost Your Credit Score: Your credit score is a primary factor in determining your interest rate. Lenders reward higher scores with lower rates. Before applying, review your credit report for errors and work on paying down high-interest debt to improve your score.
- Increase Your Down Payment: Lenders often provide better interest rates for borrowers who can make a larger down payment. A down payment of 20% or more not only helps you secure a better rate but also allows you to avoid Private Mortgage Insurance (PMI).
- Consider Different Loan Structures: While the 30-year fixed mortgage is the most popular, it’s not always the best option. If you plan to move within a few years, an ARM could offer a significantly lower initial rate. A 15-year mortgage comes with higher monthly payments but a lower interest rate and substantial long-term savings.
- Ask About Mortgage Points: If you have the cash on hand, you can pay “discount points” at closing. One point typically costs 1% of the loan amount and can reduce your interest rate. Ask your lender if buying down the rate makes financial sense for your situation.
Key Takeaway: Home loan rates saw a slight downward trend to start the day, with the benchmark 30-year fixed mortgage rate nudging down to 6.90%. This continues a week of modest but welcome relief for borrowers navigating a challenging housing market.
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