Mortgage rates today

Mortgage Rates Hit New Lows: Time to Lock In?

💸 Mortgage rates are falling like dominoes! Find out if now's the time to lock in that dream home rate! 🏡📉

If you're in the market for a new home, now might just be the perfect time to lock in a mortgage. As of August 5, 2024, the average rate for the benchmark 30-year fixed mortgage has dropped to 6.75%. In tandem, the 15-year fixed-mortgage rate is currently sitting at 6.19%. But wait, there's more! In some cases, rates have dipped further, with some data showing an average interest rate of 6.429% for a 30-year conforming mortgage loan.

What's causing this sudden decline? A recent poor jobs report has had a lowering effect on rates, prompting the Federal Reserve to consider an interest rate cut later this year. This move, combined with lowered inflation, has been a major factor in the current rate drop. For instance, today's average 30-year fixed-rate mortgage is 6.125%, marking a 0.250 percentage point dip from just Friday.

Let's talk finances. At an interest rate of 6.93%, a 30-year fixed mortgage will cost you $661 per month in principal and interest per $100,000 of the loan (taxes and fees excluded). If rates continue to drop as anticipated due to further Fed actions and economic shifts, you could see even more savings in your pocket.

Now, with rates falling like autumn leaves 🍂, could they continue to decline this month? The anticipation surrounding a Federal Reserve rate cut is boosting many homeowners' hopes for even lower rates. The question remains: will this be the norm for the rest of August?

Fact 1: Did you know that mortgage rates can fluctuate based on jobs data? A weaker jobs report often leads to lower rates, as seen recently.

Fact 2: Inflation isn't just a grocery store buzzword. Lower inflation rates can significantly impact mortgage rates, as evidenced by today's scenario.