Mortgage and Refinance Rates Today: Month-over-Month Decrease

Mortgage and refinance rates have seen a month-over-month decrease, offering relief to new homebuyers and homeowners seeking to refinance. According to Bankrate, the average 30-year fixed mortgage rate stands at 6.81% as of December 15, 2024, down from 6.88% a month ago. Similarly, the 15-year fixed refinance rate has fallen to 6.33% from 6.34%. This decrease translates to lower monthly payments for borrowers, making homes more affordable and enabling homeowners to save on their existing mortgage payments.

The decrease in mortgage and refinance rates has a positive impact on home affordability. Lower interest rates reduce monthly mortgage payments, making homes more accessible to buyers. Additionally, lower refinance rates allow homeowners to reduce their existing mortgage payments, potentially freeing up funds for other expenses or investments. This decrease in interest rates is a welcome development for both new homebuyers and homeowners seeking to refinance.



The decrease in mortgage and refinance rates can be attributed to a pause in the Federal Reserve's interest rate hikes, as indicated by Taylor Jessee, CFP. The Fed's monetary policy has significantly impacted mortgage and refinance rates, with the average 30-year mortgage rate decreasing to 6.81% from 6.88% in November. This decrease, coupled with signs of waning inflation and a weaker labor market, raised expectations that the Fed would cut its benchmark interest rate in September, leading to a 14-month low in the average rate on a 30-year mortgage.

Economic indicators, particularly employment and inflation data, have played a significant role in the decrease in mortgage and refinance rates. The jobs report released on December 13, 2024, showed a weaker labor market, which was good news for mortgage rates. This, coupled with signs of waning inflation, raised expectations that the Fed would cut its benchmark interest rate in September, leading to a 14-month low in the average rate on a 30-year mortgage.

In conclusion, the decrease in mortgage and refinance rates offers relief to new homebuyers and homeowners seeking to refinance. The positive impact on home affordability, coupled with the decrease in interest rates, makes homes more accessible to buyers and enables homeowners to save on their existing mortgage payments. The decrease in interest rates can be attributed to a pause in the Federal Reserve's interest rate hikes and positive economic indicators, particularly employment and inflation data. As the market continues to evolve, it is essential to stay informed about the latest trends and developments in mortgage and refinance rates to make informed decisions about home purchases and refinancing.