The national average 30-year fixed mortgage Rate is 7.152%. The average 15-year fixed mortgage Rate is 6.229%, according to ICanbuy's latest survey of the nation's mortgage lenders. Rate details. * Points are equal to 1% of the loan amount and lower the interest rate.
Mortgage originations
Originations continued to drop in 2023 to $1.50 trillion. Through the three quarters of 2024, their pace rebounded slightly, with $1.23 trillion worth of originations, compared with $1.10 trillion in the first three quarters of 2023.
There's never a bad time to move into the mortgage industry. As it turns out, the mortgage industry is fertile ground for those looking to shift into something that's new, lucrative, and actually makes a difference in other people's lives.
The Bottom Line. To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn't mean you should stretch your budget to the maximum.
Fannie Mae: Fannie Mae's latest forecast predicts that 30-year mortgage rates will drop to 6.20% by the end of the year. Its forecast for 2026 has rates falling to 6.10%. Freddie Mac: In their December outlook, Freddie Mac researchers said they believe mortgage rates will go down "very gradually" in 2025.
Many prospective homebuyers chose to wait things out in 2023, in the hopes that 2024 would bring a more advantageous market. But with mortgage interest rates remaining relatively high and housing inventory remaining stubbornly low, it looks like the last few months of 2024 will remain a challenging time to buy a house.
Though mortgage rates have fallen from their 8% peaks, the decline has been slow and gradual. Over the past 12 months, the average 30-year fixed mortgage rate has fluctuated between 6.5% and 7.5%. Most housing economists had expected mortgage rates to drop to 6% by the end of 2024, moving into the mid-5% range in 2025.
By January 2024, though, that figure plummeted 47% to just 93,938 MLOs. That's nearly half of the producing loan officers in the United States who are no longer in business.
Lenders reported a net loss of more than $534 per mortgage origination in the second quarter of 2023, according to the Mortgage Bankers Association. While the average 30-year fixed mortgage rate—which hit 7.06% today—has come off last week's 22-year high of 7.49%, housing affordability still remains pressurized.
More than three-quarters of homeowners — 78.7 percent — have a mortgage rate below 5 percent, while nearly 6 in 10 — 59.4 percent — have a mortgage below 4 percent. Just 22.6 percent have a mortgage rate below 3 percent, according to Redfin.
In January 2025, mortgage rates have been edging down after recent increases and more mortgage rates cuts are predicted in 2025.
The short answer is: Pay attention to market dynamics. If interest rates have been stable, locking in your rate early may not be necessary. If rates are falling and are likely to continue in that direction, you may want to wait a bit before locking the rate since you could get a better rate in a few weeks.
Key Takeaways:
If you can afford a down payment, closing costs, mortgage payment, taxes, insurance and maintenance costs, buying now can build you equity, with the option to refinance if rates fall. If you're unsure about being able to afford a home, take this time to pay off debt and improve your credit score.
The U.S. mortgage market has experienced significant fluctuations due to refinancing activity skyrocketing during the COVID-19 pandemic and dropping dramatically in 2022 and 2023. The decline in refinancing lending can be largely attributed to the Federal Reserve's aggressive interest rate hikes to combat inflation.
Today's rates seem high compared with the recent 2% rates of the pandemic era. But experts say getting below 3% on a 30-year fixed mortgage is unlikely without a severe economic downturn.
Current mortgage interest rates in California. As of Monday, January 13, 2025, current interest rates in California are 7.33% for a 30-year fixed mortgage and 6.61% for a 15-year fixed mortgage.
If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now can still be a smart move. But if your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.
Even if mortgage rates decline closer to 6% in 2024, given that nearly 90% of homeowners are still paying mortgage rates below 5% (and about two-thirds with rates under 4%), many sellers will delay listing their homes for sale due to this “lock-in effect.” This effect is unlikely to unravel on a larger scale until ...
If you are looking to buy a house you may want to wait until 2026. Home sellers would probably be wise to sell before 2026. Likewise, if you are looking to downsize, it would be to your economic advantage to do it sooner rather than later. The reason, of course, is the outsized impact of the baby boomer generation.
Strong labor market data combined with recent sticky inflation makes it less likely that the Federal Reserve will cut the federal funds rate anytime soon.
The current Bank of America, N.A. prime rate is 7.50% (rate effective as of December 19, 2024).
The National Association of Home Builders expects the 30-year mortgage rate to decrease to around 6.5% by the end of 2024 and fall below 6% by the end of 2025, according to the group's latest outlook.