Mortgage Rates Remain Near 6.20% for October 12, 2024

As of October 12, 2024, mortgage rates for 30-year fixed-rate mortgages remain near 6.20%, according to Zillow data. This rate has held steady this week following an increase earlier in the month. Experts predict that rates will ease in 2025, but may not drop significantly further in the near term unless incoming data suggests a weakening labor market.

Key Takeaways:

Mortgage rates for 30-year fixed-rate mortgages have held steady at around 6.20% for the past week, according to Zillow data.
Rates increased earlier in the month but have remained stable this week, with average 30-year rates remaining around 6.20%.
Mortgage rates have increased in response to stronger-than-expected labor market data and shifting expectations around future Federal Reserve rate cuts.
Most experts believe that mortgage rates will go down further in 2025 as the Fed continues to cut rates, but they're unlikely to drop much in the near term.
A 30-year fixed-rate mortgage is the most popular home loan, offering a fixed rate for the life of the loan, allowing borrowers to spread out payments over a long period of time at a lower monthly payment.
15-year mortgage rates are in the mid-5% range, according to Zillow data, with rates trending higher so far this month.
Refinance rates have been higher in October compared to last month, with 30-year refinance rates averaging 5.89% in September and 15-year refinance rates averaging 5.19%.
The Federal Reserve's policy actions, such as lowering the federal funds rate, can impact mortgage rates by influencing investor demand for mortgage-backed securities.
Mortgage rates are unlikely to drop back down to historic lows, but are expected to continue easing over the next year or two as the Fed continues to cut rates.
Most forecasts expect mortgage rates to go down throughout 2025, but this forecast may change depending on the economy's evolution.

Statistics:

Mortgage rates for 30-year fixed-rate mortgages have remained near 6.20% for the past week.
Average 30-year mortgage rates have increased from 5.74% in September to around 6.20% in October.
15-year mortgage rates have trended higher this month, reaching the mid-5% range.
Refinance rates have been higher in October, with 30-year refinance rates averaging 5.89% in September and 15-year refinance rates averaging 5.19%.
The Fed is expected to lower rates two more times this year.
The federal funds rate has been lowered, with the Fed cutting rates in September and expected to cut rates two more times this year.

Sources:

Business Insider (https://www.businessinsider.com/todays-mortgage-rates-saturday-october-12-2024-10)
Zillow (https://www.businessinsider.com/personal-finance/mortgages/what-is-zillow)
Freddie Mac (https://datawrapper.dwcdn.net/dBxcL/2/)
Federal Reserve (https://www.businessinsider.com/personal-finance/investing/what-is-the-federal-funds-rate)
Business Insider (https://www.businessinsider.com/personal-finance/mortgages/how-are-mortgage-rates-determined)