Mortgage Interest Rates Today, March 6, 2024

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Mortgage rates have receded a bit this week, with average 30-year mortgage rates hovering around 10 basis points below last week’s average at 6.59%,according to Zillow data.

Depending on how some upcoming economic reports turn out, we could see mortgage rates inch down a little further in March. But we’re unlikely to see any substantial drops for a few more months.

As the Federal Reserve raised the federal funds rate over the last couple of years, mortgage rates rose, too. Now that the Fed is considering cutting rates this year, many experts believe that mortgage rates will go down soon. But Fed officials have stated that they want to see more data showing that the economy is balancing out and inflation is coming down before they make any cuts.

The next big piece of data the Fed will be looking closely at is the February jobs report, which is set to be released on Friday. If this report shows that the labor market is continuing to come into better balance, we could see mortgage rates inch a little lower. But if it comes in hotter than expected, like last month’s release, mortgage rates could jump back up. 

Next week, the Bureau of Labor Statistics will release the latest Consumer Price Index data. This is a key gauge of inflation, and the results of this report could also cause some volatility with mortgage rates. 

Rates have been very sensitive to incoming economic data, as investors are looking for signs of when exactly the Fed might start cutting rates. Right now, markets are pricing in a 54.4% probability that the Fed will cut rates by 25 basis points at its meeting in June, according to the CME FedWatch Tool.

This means that as we approach the summer, we could see mortgage rates start to trend down more substantially. Though mortgage rates aren’t tied to the federal funds rate, they often move up or down based on how investors think Fed policy moves will impact the broader economy.  

Today’s mortgage rates

Today’s refinance rates

Mortgage Calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Mortgage Rate Projection for 2024

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.

Many forecasts expect rates to fall this year now that inflation has been coming down. In the last 12 months, the Consumer Price Index rose by 3.1%, a significant slowdown compared when it peaked at 9.1% in 2022. But we’ll likely need to see more slowing before rates can drop substantially.

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

When Will House Prices Come Down?

We aren’t likely to see home prices drop this year. In fact, they’ll probably rise.

Fannie Mae researchers expect prices to increase 3.20% in 2024 and 0.30% in 2025, while the Mortgage Bankers Association expects a 4.10% increase in 2024 and a 3.30% increase in 2024.

Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates have since eased, removing some of that pressure. The current supply of homes is also historically low, which will likely push prices up.

What Happens to House Prices in a Recession?

House prices usually drop during a recession, but not always. When it does happen, it’s generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.

How Much Mortgage Can I Afford?

A mortgage calculator can help you determine how much house you can afford. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.

Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn’t exceed 28% of your pre-tax monthly income.

The lower your rate, the more you’ll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.