Mortgage Rates Today, Today, Monday, December 1: Real Low

Mortgage rates are looking almost suspiciously low, but don’t worry – we can tell you what’s going on.

The average interest rate for a 30-year, fixed-rate mortgage fell to 5.88% APR, according to rates provided to NerdWallet by Zillow. That’s 13 basis points lower than yesterday and seven basis points lower than a week ago. .

Right now, there’s a lot of will or not. Federal Reservewhich has its last meeting of 2025 next week. Usually by the time we get close to a meeting, markets have made up their minds about whether the Fed will raise, lower or hold the federal funds rate. But this time, there’s more uncertainty than usual – more on that below the graph.

This conspiracy means that mortgage lenders, like the rest of us, are trying to figure out where things stand, and we’re seeing fewer contracts than usual. Keep in mind that we’re looking at the average rate for a strong candidate, but most lenders will show you when you’re looking at sample rates. Entering your personal information will give you a better sense of what rate you may be offered.

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.

Thank you for this fall Government shutdown By disrupting data collection by federal agencies, central bankers are working with far less information than usual. This makes their next move less obvious for them and everyone else to see. On top of that, individual Fed governors have been uncoordinated recently, with some calling for cuts and others advocating caution in public remarks.

So now all eyes are on this week’s biggest data drop: On Friday, December 5, the Commerce Department will release Inflation Data for September. That’s right, by inflationary numbers Three months ago. The report includes the latest Personal Consumption Expenditure Price Index, or PCE, which is the Fed’s preferred gauge of inflation.

Although the information is older than skinny jeans, September’s PCE could strongly influence the Fed’s decision when it meets next week. Bankers may be reluctant to cut short-term rates if the report shows strong inflation. But if it’s not too bad, the rate may drop. Having a clearer picture of the Fed’s next move will likely stabilize market expectations and give mortgage rates a clearer direction.

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, 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 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 is up to you:

• 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.