An overall downward trend results in lower average rates as of Monday, March 11, 2024. The week starts at 6.95% for a 30-year fixed mortgage and 6.94% for a 30-year fixed refinance, with rates for 15-year terms also lower than last week at 6.47% for purchase and 6.52% for refinance. The average rate on a 30-year fixed jumbo mortgage is 7.03%.
Purchase rates for Monday, March 11, 2024
30-year fixed rate — 6.95%
20-year fixed rate — 6.76%
15-year fixed rate — 6.47%
10-year fixed rate — 6.34%
5/1 adjustable rate mortgage — 6.31%
30-year fixed FHA rate — 6.76%
30-year fixed VA rate — 6.91%
30-year fixed jumbo rate — 7.03%
Refinance rates for Monday, March 11, 2024
30-year fixed rate — 6.94%
20-year fixed rate — 6.73%
15-year fixed rate — 6.52%
10-year fixed rate — 6.34%
5/1 adjustable rate mortgage — 6.30%
30-year fixed FHA rate — 6.79%
30-year fixed VA rate — 7.48%
30-year fixed jumbo rate — 7.02%
Current mortgage rates for March 11, 2024
Inflation has slowed in recent months, and market conditions are favorable, with the Biden Administration announcing more student loan forgiveness on February 21. While the Fed rate does not determine mortgage rates, it sets benchmarks that indirectly impact rates on financial products like mortgages and personal loans. The Fed has a firm goal of a 2% inflation rate, and with favorable economic reports on the job market, it's unlikely the reserve will cut rates until that goal is more of a reality.
Mortgage rates in the news
After increasing the federal funds rate target 11 times between March 2022 and July 2023, the Federal Reserve held rates steady at its meeting in late January. Federal Reserve Chair Jerome Powell's comments on March 6, 2023, to House lawmakers signaled hesitance to cut rates, with a decision dependent on "see[ing] a little more data" that inflation will return to the Fed's 2% target. The Federal Reserve is scheduled to meet on March 19, just after consumer price index data for February is released. Cuts by the Fed to target rates tend to push average mortgage rates lower, which could keep mortgage rates in the 6% range — a boon to future homebuyers.
Frequently asked questions: Daily mortgage rates
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.
