<\/p>\n
\n If you’ve been waiting for lower mortgage rates, today just might be your day.<\/span>\n <\/p>\n<\/p><\/div>\n \n 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.<\/span>\n <\/p>\n<\/p><\/div>\n \n 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.<\/span>\n <\/p>\n<\/p><\/div>\n \n Mortgage rates are <\/span> \n Typically, the Nerds are <\/span> \n 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 <\/span> \n There is no universal \u201cright\u201d time to start shopping \u2014 what matters is whether you can comfortably afford a mortgage now at today\u2019s rates.<\/span>\n <\/p>\n<\/p><\/div>\n \n If the answer is yes, don\u2019t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting <\/span> \n NerdWallet\u2019s <\/span> \n If you already have a quote you\u2019re happy with, consider <\/span> \n Rate locks protect you from increases while your loan is processed, and with the market constantly fluctuating, that peace of mind can be invaluable.<\/span>\n <\/p>\n<\/p><\/div>\n \n \ud83e\udd13 <\/span> \n Refinancing may be a smart move if today\u2019s 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.<\/span>\n <\/p>\n<\/p><\/div>\n \n Given the current rates, you might want to consider refinancing if your existing rate is around 6.64% or higher.<\/span>\n <\/p>\n<\/p><\/div>\n \n 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 <\/span> \n If you’re aiming for a lower rate, utilize NerdWallet’s <\/span>\n Average mortgage rates, last 30 days<\/span><\/span>
\n <\/h3>\n<\/p><\/div>\n\n \ud83d\udcc9 When will mortgage rates drop?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n constantly changing,<\/span><\/span>
\n as a major part of <\/span>
\n
\n how rates are set<\/span><\/span>
\n <\/a>
\n depends on reactions to new inflation reports, job numbers, Fed meetings, global news \u2026 you name it. Even tiny changes in the bond market can shift mortgage pricing.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n looking ahead<\/span>
\n <\/a>
\n to a big data drop. However, due to the <\/span>
\n
\n government shutdown<\/span>
\n <\/a>
\n , information we expected to arrive shortly \u2014 like the <\/span>
\n
\n CPI report<\/span>
\n <\/a>
\n scheduled for Wednesday \u2014 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.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n cut rates in September<\/span>
\n <\/a>
\n . For now, we\u2019ll be keeping a close eye on the markets \u2014 as will the Fed.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83c\udfe1 Should I start shopping for a home?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n preapproved<\/span><\/span>
\n <\/a>
\n , comparing lender offers, and understanding what monthly payment works for your budget.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n affordability calculator<\/span><\/span>
\n <\/a>
\n can help you estimate your potential monthly payment. If a new home isn\u2019t 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\u2019re ready to buy.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83d\udd12 Should I lock my rate?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n locking your mortgage rate<\/span><\/span>
\n <\/a>
\n , 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.<\/span>\n <\/p>\n<\/p><\/div>\n
\n Nerdy Reminder:<\/span><\/span>
\n Rates can change daily, and even hourly. If you\u2019re satisfied with the deal you have, it\u2019s perfectly fine to commit.<\/span>\n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n\n \ud83d\udd01 Should I refinance?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n cash-out refinance<\/span><\/span>
\n <\/a>
\n 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.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n refinance calculator<\/span><\/span>
\n <\/a>
\n to estimate your savings and understand how long it would take to break even on the costs of refinancing.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83e\uddd0 Why is the rate I saw online different from the quote I got?<\/span><\/span>
\n <\/h3>\n<\/p>\n