Instant Reaction: Mortgage Rates, January 18, 2024

Home buyers should be pleased with the continuing drop in mortgage interest rates this week. If they can find a home, they can lock in a mortgage interest rate of 6.60% this week, down from 6.66% last week. This is the lowest mortgage interest rate in eight months (May 2023 mortgage interest rates were 6.57%). The historical norm for mortgage interest rates since 1971 is 7.74%.

For a $400,000 home, the typical mortgage payment with a 20% down payment for a 6.6% mortgage interest rate would be $2,044. This is a monthly savings of $257 compared to when mortgage interest rates were at their recent high point in October 2023.

For potential home buyers, winter is often a time to set financial goals for the year ahead. If a home purchase is a financial goal on the horizon, this is the time to work on cleaning up finances and finding a mortgage broker and a REALTOR® to help with that pursuit. Home buyers, especially first-time buyers, can benefit from researching FHA, VA loans, and low down payment programs. These programs are often under home buyers' radars and can put homeownership within reach.