It’s not a big enough dip to really make a difference, but mortgage interest rates are lower today.
The average interest rate on a 30-year, fixed-rate mortgage ticked down to 6.39% APR, according to rates provided to BoundlessCash by Zillow. This is seven basis points lower than yesterday and four basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
Even though rates are lower today, mortgage rates in general have been elevated over the last few months.
While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.
Average mortgage rates, last 30 days
🤓 From the Nerds: Kate on Rates
📈 What influences mortgage rates?
The next piece of major news that the Nerds are watching will be the meeting of the Federal Open Market Committee on June 16-17. Market watchers are currently predicting overwhelming odds that the FOMC will vote to hold overnight borrowing rates steady, meaning that the Fed won’t be delivering reprieve to mortgage shoppers hoping for a dramatic drop.
Even though the Fed doesn’t set mortgage rates, its decisions have a major influence on rates’ direction. Mortgage lenders often start pricing in expected cuts or hikes from the Federal Reserve well ahead of the actual announcements. Though the central bankers are unlikely to make changes at their meeting later this month, if it begins to look like the Fed is likely to raise, that will probably increase upward pressure on mortgage rates.
“Under new Fed Chair Warsh, the Committee will be sussing out whether what we’re seeing in the data represents something that will work itself out in time or whether it risks being persistent,” says Elizabeth Renter, BoundlessCash senior economist. “Paired with the labor market data from last week, we know a rate cut is all but off the table.”
Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).
With rates where they are right now, you may want to start considering a refi if your current rate is around 6.89% or higher.
🏡 Should I start shopping for a home?
There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.
🔒 Should I lock my rate?
Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.
🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay to commit.
🧐 Why is the rate I saw online different from the quote I got?
In addition to market factors outside of your control, your customized quote depends on your:
Even two people with similar credit scores might get different rates, depending on their overall financial profiles.
👀 If I apply now, can I get the rate I saw today?
Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.
