Mortgage Rates Today, Friday, January 23: A Little Lower

Mortgage rates are lower today than they were yesterday, but they’re still around 6% where they’ve been for weeks.

The average interest rate for a 30-year, fixed-rate mortgage came to 5.89 percent APR, according to rates provided to NerdWallet by Zillow. That’s two basis points lower than yesterday and four basis points lower than a week ago. .

While this wasn’t much of a move, if you’re shopping for a home or thinking about refinancing, it could be a signal to start with the rate a little closer. Even if the rates aren’t necessary every day, you’ll feel more prepared to make your move if the overall trend is down.

Although the economy never sleeps, the markets close at the end of the week. The rates you see on Friday are unlikely to change much (if at all) until Monday.

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, world news… you name it. For example, even small changes in the bond market can cause changes in mortgage rates.

Next week, nerves will be watching the Federal Reserve meeting, which is scheduled for January 27-28. Analysts overwhelmingly agree that the Fed will likely vote to keep the federal funds rate steady, which is the rate banks are paid to borrow from each other to fund mortgages. When the federal funds rate moves up or down, mortgage rates usually follow, as it becomes more or less expensive for borrowers to originate home loans.

Central bankers have voted to cut the federal funds rate at their last three meetings, so this will be the first such break since July.

Analysts expect the decision could be part of a larger trend at the Federal Reserve, as a January survey of 100 economists by Reuters showed a slim majority believed the Fed would hold rates steady for at least the rest of the quarter.

On Tuesday, January 20, Treasury Secretary Scott Besant also claimed that the president could reveal his pick for the next chair of the Federal Reserve next week. If an announcement does come, analysts will immediately try to take the temperature of the new incumbent to predict how he might run the Federal Open Market Committee after current chair Jerome Powell leaves the post in May.

If today’s rates are at least 0.5 to 0.75 percent lower than your current rate (and also to break down closing costs if you plan to stay in your home for a long time).

With rates where they are right now, you may want to start considering a refi if your current rate is 6.39% or higher.

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 can refinance for the rate and term. , as long as the total costs are lower than if you had kept your original mortgage and added a hilock or home equity loan.

If you’re looking for a lower rate, use Nerd Wallet Refinance Calculator Estimating the savings and understanding how long it will take to break even on 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 get too hung up on whether you can lose out on lower rates later. You can refinance down the road. Focus on getting preapprovedcomparing lender offers, and understanding what monthly payment works for your budget.

nerdwallet’s Affordability Calculator It can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Use 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, 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 Locking in your mortgage rateespecially if your lender offers a float-down option. A float down allows you to take advantage of a better rate if the market falls during your lock-in period.

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

The rate you are advertised is one Sample rate – Usually for borrowers with perfect credit, making large payments, and making payments Mortgage points. It won’t match every buyer’s situation.

In addition to market factors beyond your control, your custom quote depends on:

• Location and property type

Even Two people with similar credit scores Depending on their overall financial profiles, different rates may be available.

Maybe – but even personalized rate quotes Until you lock. This is because lenders adjust prices multiple times a day in response to changes in the market.