Rates rise – Mortgage rates for today, December 20, 2024

Average mortgage rates edged higher for all types of loans compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.

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Rates as of December 20, 2024.

The rates listed above are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, December 20th, 2024 at 7:30 a.m. ET.

At the conclusion of its latest meeting on Dec. 18, the Federal Reserve announced another quarter-point rate — the third cut in a row. Although the Fed has cut interest rates three times since September, mortgage rates have only risen, up 0.71 percentage points since September’s low, according to Bankrate data.

Thirty-year mortgage rates tend to track the 10-year Treasury yield, which shifts continuously alongside the economy and the forces that shape it. More recently, rates have been driven by factors like inflation, the election and geopolitical developments abroad.

“As expected, the Fed lowered rates again by 0.25 percent — it also lowered its expectations for rate cuts in 2025,” says Melissa Cohn, regional vice president of William Raveis Mortgage.

“I expect mortgage rates to yo-yo around the current level,” says Sean Salter, associate professor of Finance at Middle Tennessee State University. “With a Fed rate cut expected next week, I believe markets will generally remain in the current rate neighborhood in the interim.”

30-year fixed-rate mortgage trends higher, +0.19%

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The average rate for a 30-year fixed mortgage for today is 6.89 percent, up 19 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.98 percent.

At the current average rate, you’ll pay principal and interest of $657.93 for every $100,000 you borrow. That’s an additional $12.65 per $100,000 compared to last week.

The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages:

• Lower monthly payment: The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
• Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
• Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
• Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Read more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate rises, +0.15%

The average 15-year fixed-mortgage rate is 6.15 percent, up 15 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $852 per $100,000 borrowed.

5/1 ARM rate climbs, +0.17%

The average rate on a 5/1 adjustable rate mortgage is 6.49 percent, adding 17 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.49 percent would cost about $631 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate moves upward, +0.11%

The average jumbo mortgage rate is 6.95 percent, an increase of 11 basis points from a week ago. Last month on the 20th, the average rate on a jumbo mortgage was above that at 6.98 percent.

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At the average rate today for a jumbo loan, you’ll pay a combined $661.95 per month in principal and interest for every $100,000 you borrow. That’s $7.36 higher compared with last week.

30-year mortgage refinance rate advances, +0.20%

The average 30-year fixed-refinance rate is 6.88 percent, up 20 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.98 percent.

At the current average rate, you’ll pay $657.26 per month in principal and interest for every $100,000 you borrow. That’s $13.31 higher compared with last week.

When will mortgage rates go down?

Mortgage rates have decreased somewhat since earlier this year, with the 30-year fixed-rate loan down from a high of 7.39 percent in May to 6.91 percent as of Dec. 18.

As for next year, expect more of the same — at least for now.

“For those expecting a dramatic drop in 30-year mortgage financing rates, 2025 is probably not the year,” says Ken Johnson, Walker Family chair of Real Estate for the University of Mississippi.

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.