Mortgage Rates Today, Monday, October 13: Noticeably Lower

If you’ve been waiting for lower mortgage rates, today just might be your day.

The average interest rate on a 30-year, fixed-rate mortgage has dropped to 6.14% APR, according to rates provided to NerdWallet by Zillow. This figure is 14 basis points lower than Friday and five basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

While a significant drop is certainly eye-catching, it’s important to consider the overall direction of mortgage interest rates, not just today’s numbers. If you like what you see, it may be time to get serious about your home search or start evaluating your refinancing options.

Mortgage rates are
constantly changing,
as a major part of

how rates are set

depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it. Even tiny changes in the bond market can shift mortgage pricing.

Typically, the Nerds are

looking ahead

to a big data drop. However, due to the

government shutdown

, information we expected to arrive shortly — like the

CPI report

scheduled for Wednesday — is in limbo. Reportedly, the CPI will be delivered late, on Oct. 24, as furloughed employees are recalled to prepare the report. We’ve already missed the jobs report that was slated for Oct. 3. These official numbers are crucial for future projections, as they can provide insights into the Federal Reserve’s likely moves; after all, data is vital to the Fed’s decision-making process.

Adding to the pressure, the Federal Reserve’s next meeting is at the end of this month, and the central bankers are at a pivotal moment, having just

cut rates in September

. For now, we’ll be keeping a close eye on the markets — as will the Fed.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting

preapproved

, comparing lender offers, and understanding what monthly payment works for your budget.

NerdWallet’s

affordability calculator

can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Use this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, but it can also help you secure a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, consider

locking your mortgage rate

, especially if your lender offers a float-down option. This option allows you to take advantage of a better rate if the market drops during your lock period.

Rate locks protect you from increases while your loan is processed, and with the market constantly fluctuating, that peace of mind can be invaluable.

Refinancing may be a smart move if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate, and if you plan to stay in your home long enough to break even on closing costs.

Given the current rates, you might want to consider refinancing if your existing rate is around 6.64% or higher.

Also, think about your goals: Are you looking to lower your monthly payment, shorten your loan term, or convert home equity into cash? For instance, you might be more comfortable with a higher rate for a

cash-out refinance

than you would for a rate-and-term refinance, provided the overall costs are lower than keeping your original mortgage and adding a HELOC or home equity loan.

If you’re aiming for a lower rate, utilize NerdWallet’s

refinance calculator

to estimate your savings and understand how long it would take to break even on the costs of refinancing.

The rate you see advertised is a
sample rate
— typically for a borrower with perfect credit, making a substantial down payment, and paying for

mortgage points

. This may not reflect every buyer’s circumstances.

In addition to market factors outside of your control, your personalized quote depends on your:

• Location and property type

Even
two people with similar credit scores
might receive different rates based on their overall financial profiles.

Maybe — but even personalized rate quotes
can change until you lock.
Lenders adjust pricing multiple times a day in response to market changes.