Mortgage Rates Today, Monday, February 23: A Little Lower

Mortgage rates edged lower today, as markets try to figure out what’s really going on with the tariffs.

The average interest rate on a 30-year, fixed-rate mortgage dropped to 5.88% APR, according to rates provided to NerdWallet by Zillow. That’s down four basis points from Friday but up 13 basis points from a week ago. (See our chart below for more details.) A basis point is one-hundredth of a percentage point.

Friday’s Supreme Court decision on rates That threw markets for a loop, and ended what should have been the biggest market mover of the day, the newly released personal consumption expenditures (PCE) data. The result is that rates remain low. For more, keep reading below the graph.

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.

If you’re asking “when will mortgage rates fall,” they have. The last time we saw average 30-year fixed rates starting at five was September 2022. If you think that’s still too much, I’m not sure what to tell you. The extremely low rates we saw in 2020 and 2021 were the result of an extraordinary response to the global pandemic, as the Federal Reserve tried to contain the economic crisis. We as a society have been through a lot to get to those 3% mortgage rates.

So let’s try to do our best with what we have. Even at a 6.0% APR, an estimated 5.5 million mortgage holders could reduce at least three-quarters of a percentage point by refinancing, according to data from real estate data firm ICE Mortgage Technology. If you have enough home equity to qualify for refi, it doesn’t hurt to check if your refi math Mathematics has started.

You might want to run these numbers sooner rather than later, as the long-term forecast looks for little rain for the parade of low rates. The minutes of the Federal Reserve’s January meeting, released on February 18, showed that inflation remains a key concern for central bankers. He Voted to keep the funds rate steady. In January, but looking ahead, there were three camps: those who felt a future rate cut was likely, those who believed the current rate could be maintained for a while, and a group open to the possibility of a rate hike.

That third group, which decided that “an upward adjustment to the target range for the federal funds rate may be appropriate if inflation remains above the target level,” got all the attention. Everyone was assuming that the argument was hold versus cut, and rate hikes weren’t really on the table. While the Fed is still unlikely to raise the funds rate (markets don’t see it happening), it’s a reminder that low rates are never guaranteed.

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 6.38% 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.