Mortgage refinance rates have dropped below the notable 7% threshold, with the average 30-year fixed rate returning to 7.00%. This marks a slight reversal from last week’s dip below the 7% mark, which was the first time since mid-December. Although rates are still elevated compared to their September low of 6.01%, they have declined modestly in recent weeks.
The movement of other refinance loan types was more mixed on Monday, with the 15-year average remaining unchanged and the 20-year average dipping 2 basis points. Jumbo 30-year fixed rates ticked up a minimal point, while FHA 30-year fixed rates increased by 1 basis point.
It’s essential to note that these rates are averages and may not reflect the actual rates you’ll qualify for when shopping for your mortgage refinance. Factors such as credit score, income, and loan terms can significantly impact your rate.
Mortgage rates are influenced by a complex interplay of macroeconomic and industry factors, including bond market fluctuations, the Federal Reserve’s monetary policy, and competition between lenders. The Fed’s recent rate cuts have had a significant impact on mortgage rates, which have been rising since 2022.
To stay informed about mortgage rates, it’s recommended to regularly compare rates from different lenders and consider using online resources like Zillow’s Mortgage Calculator to get an estimate of your monthly mortgage payment based on various loan scenarios.
Source: https://www.investopedia.com