Instant Reaction: Mortgage Rates, February 15, 2024

Mortgage interest rates for the 30-year fixed mortgage averaged 6.77% this week, up from 6.64% last week based on Freddie Mac data. While mortgage interest rates have edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high.

For home buyers purchasing the typical home at $400,000 (with a 20% down payment), the mortgage payment is $2,080. While mortgage interest rates may come down to the low 6% range in the middle to later part of the year, buyers must weigh what makes the most sense for them as home prices are expected to climb due to limited inventory. Timing the real estate market based purely on mortgage interest rates (especially marginal changes) rarely works when new babies, marriages, and jobs are the real decision-makers.