Mortgage Rates Today, Wednesday, January 21: Flat, Still Close to 6%

Mortgage rates remained essentially flat compared to yesterday.

According to rates provided to NerdWallet by Zillow, the average interest rate for a 30-year, fixed-rate mortgage came to 6.09% APR. That’s one basis point lower than yesterday and 15 basis points higher than a week ago. .

Rates have hovered around 6% all month, give or take 10 basis points. If you can afford today’s rates, it may be a good time to shop for a mortgage or refinance.

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.

This week, nerves are keeping an eye on the Personal Consumption Expenditure Index (PCE), which will be released tomorrow. PCE is a key measure of inflation, which is one of the Federal Reserve’s primary priorities when setting the overnight borrowing rate. (This is the rate that banks pay to fund home loans, which affects the mortgage rates they set.)

While the government shutdown feels like a distant memory, we’re still dealing with delays in official data. This month’s PCE will cover November’s data, which is somewhat stale, still a helpful marker to bridge the gap with recent trends.

Take our last look at inflation – The December Consumer Price Index (CPI) report released on January 13 showed that inflation is gradually moderating. Prices rose 2.7 percent over the past 12 months, about the same rate as the previous month. However, this is still slightly above the Fed’s target rate of 2%.

We still have a week until the Fed meeting, but analysts are predicting that the central banker will vote to keep rates steady. And any feed chatter is likely to have an argument with it New Threats to Fed Independenceserved earlier this month after Justice Department subsidiaries related to Federal Reserve Chair Jerome Powell.

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 now, you may want to start considering a refinance if your current rate is 6.59% 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.