Mortgage interest rates for today February 21, 2024: Rates are on the rise

It's another rise in rates for 30-year-fixed mortgages today, hitting 7.29%. That is 4 basis points higher than this time last week, which was more than 10 basis points than the week prior. 15-year fixed loan terms also increased, landing at 6.62%, while 30-year fixed refinance rates remained steady at 7.28%. Predictions of a bumpy road for potential homebuyers seem to be a reality now, as rates are not falling as quickly as hoped. An overall downward trend is expected this year, but here's where things stand today: Wednesday, February 21, 2024. 

The unchanged interest rates by the Federal Reserve have mostly positively impacted mortgage rates. Inflation has slowed in recent months, and market conditions are favorable with more student loan forgiveness announced today. Fed governor Christopher Waller believes the 2% inflation target rate is on the horizon. While the Fed rate does not determine mortgage rates, it sets benchmarks and impacts other rates, like mortgages.

We are tracking rates daily to see the impact on hopeful homebuyers, so as of today, February 21, 2024, the rates are:

• 30-year fixed rates are 7.29%

• 15-year fixed rates are 6.62%

• 5/1 adjustable rate mortgages are 6.18% 

• 30-year fixed refinance rates are 7.28%

Current Mortgage Rates for February 21, 2024

The National Association of Realtors does expect mortgage rates to steady in the 6% range by year's end, but it will take a lot of ups and downs to arrive there ultimately. The Fed has a firm 2% inflation rate goal and with favorable economic reports on the job market, it's unlikely they will cut rates until that goal becomes more of a reality. The latest announcement from the Fed kept rates steady again, signaling things are on the right track and hopeful homebuyers may have a more favorable market in 2024.

Daily Mortgage Rate Frequently Asked Questions

• What is a mortgage rate? The rate of interest paid by the borrower to a lender for the length of a loan term. There are two types of rates: fixed and variable. Fixed remains the same and variable rates will fluctuate based on market conditions after a certain amount of time. 

• What are mortgage lenders? They are financial institutions that loan money to homebuyers. They are different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, conversing directly with borrowers and sending monthly statements.  

• What does it mean to refinance a mortgage? This is essentially trading in your current mortgage to another lender for more favorable rates and/or terms for your current loan. The new lender pays off your old mortgage and you then owe the new lender a monthly payment.  

• What factors influence mortgage rates? Mortgage rates are impacted by many factors, including inflation rates, economic conditions, housing-market trends, and the Federal Reserve's policies. Lenders will also consider your credit score, down payment amount and other terms of the loan you're requesting, like 30-year or 15-year offers.

• How do I get the best mortgage rate? The best way to secure a good mortgage rate is to maintain a good credit score, have a stable income, shop around and research lenders, as well as understand and consider different types of loan options that are most suitable for your life and income. In some cases, increasing the down payment amount can result in better rates, too.

• What is the difference between a fixed or adjustable-rate mortgage (ARM)? Fixed-rate mortgages offer a consistent interest rate throughout the period of the loan, whereas ARMs will typically start with a lower fixed rate for an agreed-upon time frame (e.g., 5-year ARM would have a fixed rate for the first 5 years) but will adjust to a variable interest rate based on market conditions for the remainder of the loan term. So, you could wind up paying more or less than your initial rate. Choosing between them depends on individual financial goals and risk tolerance.

• When is the best time to lock in a mortgage rate? Mortgage rates can fluctuate daily, so it's best to lock in a rate when you're comfortable with the offered rate and conditions of the loan. Market conditions will impact the rates offered, so it's important to pay attention to the changes.

• How does the Federal Reserve impact mortgage rates? The Federal Reserve's changes to rates for federal funds can influence short-term and long-term interest rates, which indirectly impacts mortgage rates, but it is an important distinction to know that mortgage rates are not directly determined by the Fed.

• Can I negotiate my mortgage rate? Lenders set their rates using many factors so there may not be room to negotiate. You can, however, discuss options for reducing costs in other ways with your potential vendors.

• What is the average mortgage rate in the US? Mortgage rates fluctuate and can vary based on loan terms, economic conditions, and individual qualifications. Checking current rates from different lenders will give you the best sense of rates each day.

• What are the current mortgage rate loan types?

  • 30-Year Fixed Rate

  • 20-Year Fixed Rate

  • 15-Year Fixed Rate 

  • 10-Year Fixed Rate

  • 7-Year ARM

  • 5-Year ARM

  • 3-Year ARM

Current refinance mortgage rates for February 2024

Sources:

• Bankrate Mortgage Industry Insights

• National Association of Realtors

• Bankrate's Mortgage rate forecast for February 2024

• Primary Mortgage Market Survey® data provided by Freddie Mac

• Zillow Mortgage Rate data

• Consumer Financial Protection Bureau