Today's Mortgage Rates, on Wednesday, September 17th: Remaining Close to Lowest Figures Reached in a Year
In today's economic landscape, homeowners and potential buyers are keeping a close eye on mortgage rates. Here's a rundown of the latest developments:
- The average interest rate on a 30-year, fixed-rate mortgage has risen to 6.12% APR today, a 4 basis point increase from yesterday and a 14 basis point decrease from a week ago.
- If your current rate is around 6.62% or higher, it might be worth considering a refinance. However, your customized quote depends on various factors such as your credit score, debt-to-income ratio, employment history, down payment, type of mortgage, location and property type, loan amount, and other considerations.
- The Federal Reserve is scheduled to announce its decision at 2 PM Eastern Time today. Markets believe a 25-basis-point cut to the federal funds rate is likely, which could potentially lead to further drops in mortgage rates.
- The Fed's two-day September meeting started yesterday, during which they are expected to reduce the overnight lending rate to support job creation. The Federal Reserve is more concerned about the job market than about inflation in this meeting.
- If today's rates are at least 0.5 to 0.75 of a percentage point lower than your current rate, refinancing might make sense. But remember, even two people with similar credit scores might get different rates, depending on their overall financial profiles.
- When refinancing, consider your goals: lowering your monthly payment, shortening your loan term, or turning home equity into cash. Use NerdWallet's refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.
- If you have a quote you're happy with, consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.
- The European Central Bank (ECB) is not expected to cut interest rates again in 2025, with no rate cuts in recent meetings including September 2025. Further cuts depend on inflation and economic growth, with market expectations pointing to a possible additional small cut by the end of 2025 but mostly stabilizing around 2% by 2026.
- Mortgage rates have been reacting early to the Fed's anticipated announcements. Personalized rate quotes can change until you lock, as lenders adjust pricing multiple times a day in response to market changes.
- Lastly, it's essential to focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget when shopping for a home. Remember that the rate you see advertised is a sample rate, not a customized quote. It's based on a borrower with perfect credit, a big down payment, and mortgage points.
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