Mortgage rates continued their downward trend this week. The average 30-year fixed-rate mortgage fell to a 10-month low. This news gives potential homebuyers a new opportunity. Many wonder if this is the best time to buy. Experts say waiting could cost you more.
Today’s Average Mortgage Rates
Freddie Mac reported the latest mortgage figures on Thursday. The average 30-year fixed-rate mortgage now sits at 6.56%. This is the lowest average rate since October 2024. Other sources show even lower numbers. Mortgage News Daily listed its daily index at 6.5%. Meanwhile, the average 15-year fixed mortgage is currently 5.5%. These lower rates increase buyer demand across the country.
Why Are Rates Decreasing?
Many factors influence mortgage rates. The Federal Reserve’s actions play a major role. The Fed is widely expected to cut its benchmark interest rate soon. Fed Chair Jerome Powell recently suggested a policy adjustment. He noted growing risks to the economy. These signals often push mortgage rates lower before official announcements.
Is It the Right Time to Buy a Home?
Lower rates tempt many buyers to wait for further drops. However, experts advise against this strategy. Zions Bank mortgage manager Jeremy Holmgren cautions buyers. He says waiting could heat up market competition. More competition will likely push home prices higher. “Waiting could actually cost you more,” Holmgren stated. He suggests that buyers should act now while rates are favorable. You can always refinance if rates drop further later. Acting now allows you to start building equity immediately.
How to Secure the Best Rate
You can take steps to get a lower mortgage rate. Lenders look at several key financial details.
Boost Your Credit Score
A higher credit score shows you are a reliable borrower. It can help you qualify for much better mortgage rates.
Make a Larger Down Payment
A bigger down payment reduces the risk for lenders. This often results in a lower interest rate for your loan.
Lower Your Debt-to-Income Ratio
A low debt-to-income ratio proves you can manage your loan. It increases your chances of getting the best rate options available.
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