Mortgage Rates Today, Friday, February 13: Noticeably Lower

If you can afford mortgage rates around 6%, this winter has been a great time to shop for a home loan.

The average interest rate on a 30-year, fixed-rate mortgage fell to 5.94% APR, according to rates provided to NerdWallet by Zillow. This is 19 basis points lower than yesterday and 10 basis points lower than a week ago. (See our chart below for more details.) A basis point is one-hundredth of a percentage point.

A significant drop is eye-catching, but keep in mind that you should consider the overall direction of mortgage interest rates, not just what’s happening today. Mortgage rates have been fairly stable since the start of the new year. That said, if you like what you see, it might be time to get serious about your home search or start checking out that raffish math.

While the economy never sleeps, the markets close on weekends. This week, markets are also closed on Monday for President’s Day. The rates you see on Friday are unlikely to change much (if at all) until Tuesday.

There are mortgage rates. constantly changing, Since a large part of How are rates determined? Depending on the reaction to new inflation reports, job numbers, Fed meetings, global news… you name it. For example, even small changes in the bond market can change mortgage rates.

The next meeting of the Federal Reserve is just over a month away. This week, nerds await the Personal Consumption Expenditures (PCE) report, which comes out on Friday. PCE is the Fed’s preferred measure of inflation. This follows today’s better-than-expected consumer price index, which showed headline inflation easing to 2.4%.

“From a macroeconomic perspective, these inflation numbers look promising,” says Elizabeth Renter, senior economist at NerdVault. “But like the jobs numbers earlier this week, these numbers don’t necessarily mean all is well, at least not yet.

For now, most forecasters still expect the Fed to keep the federal funds rate steady at its March 17-18 meeting. The federal funds rate indirectly affects the direction of mortgage rates.

If today’s rates are at least 0.5 to 0.75 percentage points 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 now, if your current rate is 6.44% or higher you may want to start considering a refinance.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you may be more comfortable paying a higher rate for a Cash Out Refinance More than you would for a rate and term refinance, as long as the total cost is lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet. Refinance Calculator To estimate the savings and understand how long it will take to break even the refinancing costs.

There is no universal “right” time to start buying – what matters is whether you can comfortably afford a mortgage at today’s rates.

If the answer is yes, don’t wait too long to see if you can miss out on lower rates later. You can refinance down the road. Focus on getting. Pre-approvedComparing lender offers, and figuring out what monthly payment works for your budget.

of NerdWallet Affordability Calculator Can help estimate your potential monthly payment. If a new home isn’t in the cards just yet, there are still things you can do to strengthen your buyer profile. Take this time to pay off existing debts and increase your down payment savings. Not only will this free up more cash flow for future mortgage payments, but it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider it. Locking in your mortgage rateEspecially if your lender offers a float-down option. A floatdown allows you to take advantage of a better rate if the market falls during your lock-in period.

Rate locks protect you from hikes during your loan process, and with the market forever bouncing around, the peace of mind can be worth it.

The rate you see advertised is a Sample rate – Usually for a borrower with perfect credit, make a large down payment, and pay off Mortgage points. It won’t match every buyer’s situation.

In addition to market factors beyond your control, the quote you want depends on you:

• Location and type of property

Even Two people with the same credit score Depending on their overall financial profiles, different rates may be available.

Maybe – but even personalized rates Can be changed until you lock. This is because lenders adjust prices several times a day in response to market changes.