Mortgage Rates Edge Higher Across Every Category: What Homebuyers and Homeowners Need to Know
Introduction:
Recent data from Bankrate shows that mortgage rates have risen across the board for multiple loan types, including the 30-year and 15-year fixed, 5/1 ARMs, and jumbo loans. Below, you’ll find an overview comparing today’s rates against last week’s numbers.
Rates December 23 2024
Why Are Mortgage Rates Trending Higher?
COn December 18, the Federal Reserve announced its third straight quarter-point rate cut, representing a total reduction of 100 basis points since September. Yet, according to Bankrate’s data, mortgage rates have climbed by 0.71 percentage points from September’s lows.
Generally, the 30-year mortgage rate moves in tandem with the 10-year Treasury yield, which fluctuates in response to economic indicators, inflation updates, election outcomes, and global events. These factors have collectively spurred the uptick in mortgage rates.
“As expected, the Fed lowered rates again by 0.25 percent — it also reduced its expectations for 2025 rate cuts,” says Melissa Cohn, regional vice president at William Raveis Mortgage.
30-Year Fixed Mortgage: Up by 0.20%
Current Average Rate: 6.93%
Last Week’s Average: 6.73%
Monthly Payment: $660.61 per $100,000 borrowed
The 30-year fixed mortgage is the go-to choice for many buyers because it stretches the repayment period over three decades, reducing monthly costs. With a 20 basis-point increase this week, you’ll pay about $13.34 more each month on a $100,000 loan than you would have a week ago.
15-Year Fixed Mortgage: Up by 0.16%
Current Average Rate: 6.20%
Last Week’s Average: 6.04%
Monthly Payment: $855 per $100,000 borrowed
A 15-year mortgage helps you pay off your home faster and spend less in total interest over the life of the loan. The trade-off is a higher monthly payment compared to a 30-year mortgage.
5/1 ARM: Up by 0.18%
Last Week’s Average: 6.27%
Current Average Rate: 6.45%
Monthly Payment (first 5 years): $629 per $100,000 borrowed
A 5/1 adjustable-rate mortgage keeps your interest rate steady for the first five years, then adjusts periodically based on market conditions. This structure can work well if you plan to sell or refinance before the initial period ends. However, keep in mind your monthly payment may rise once the rate becomes variable.
30-Year Fixed Jumbo: Up by 0.12%
Current Average Rate: 6.94%
Last Week’s Average: 6.82%
Monthly Payment: $661.28 per $100,000 borrowed
Jumbo loans surpass the conforming loan limits set by Fannie Mae and Freddie Mac. Because of the larger loan balances and additional lender requirements, these mortgages often carry slightly higher interest rates than conventional loans.
30-Year Refinance Rate: Up by 0.22%
Current Average Rate: 6.96%
Last Week’s Average: 6.74%
Monthly Payment: $662.62 per $100,000 borrowed
If you’re contemplating a refinance, note that today’s average rate is higher than it was last week. Nevertheless, improved credit scores or increased home equity might still help you secure better terms than you currently have.
Will Mortgage Rates Come Down Soon?
Although today’s mortgage rates have dipped from this year’s peak of 7.39% (reached in May), they still hover around the mid-6% range as of mid-December. Many analysts forecast relatively stable rates ahead, with no immediate sharp declines in sight.
“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 at the University of Mississippi.