Mortgage Rates Today, Wednesday, October 15: 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 6.02% APR, according to rates provided to NerdWallet by Zillow. This marks an 11 basis point decrease from yesterday and a 16 basis point decline from 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 essential to consider the overall direction of mortgage interest rates rather than focusing solely on today’s figures. If you’re pleased with the current rates, it may be time to get serious about your home search or start evaluating your refinancing options.

Mortgage rates are
constantly changing,
as a significant part of

how rates are set

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

Typically, the Nerds are

looking ahead

to significant data releases. However, due to the

government shutdown

, information we anticipated, like the

CPI report

originally scheduled for today, is delayed. The CPI is now expected to be released on Oct. 24, as furloughed employees are called back to prepare the report. We’ve also missed the jobs report that was supposed to come out on Oct. 3. These official figures are crucial for future projections, as they provide insights into the Federal Reserve’s likely actions; after all, data is essential for the Fed’s decision-making process.

Adding to the pressure, the Federal Reserve’s next meeting is at the end of this month. The central bankers are at a critical juncture, having just

cut rates in September

. For now, we will be closely monitoring the markets — as will the Fed.

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

If the answer is yes, don’t stress too much about potentially missing out on lower rates later; refinancing is always an option down the line. Focus on getting

preapproved

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

NerdWallet’s

affordability calculator

can assist you in estimating your potential monthly payment. If purchasing a new home isn’t feasible right now, consider strengthening your buyer profile. Use this time to pay down existing debts and build your down payment savings. This approach not only frees up more cash flow for future mortgage payments but can also secure you a better interest rate when you’re ready to buy.

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

locking your mortgage rate

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

Rate locks shield you from increases while your loan is processed, and given the market’s volatility, that peace of mind can be invaluable.

Refinancing may be a wise choice if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate (and if you plan to stay in your home long enough to recoup closing costs).

With current rates, you might want to consider refinancing if your existing rate is around 6.52% or higher.

Also, think about your goals: Are you aiming 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 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 seeking 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 rate may not reflect every buyer’s situation.

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

• Location and property type

Even
two individuals 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 fluctuations.