<\/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 6.04% APR, according to rates provided to NerdWallet by Zillow. This marks a decrease of 10 basis points from yesterday and nine basis points from 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 essential to consider the overall trend 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.<\/span>\n <\/p>\n<\/p><\/div>\n \n Mortgage rates are <\/span> \n This week, the Nerds are closely monitoring any information regarding the economy. The <\/span> \n As if that weren’t enough pressure, the Federal Reserve is meeting next week, and the central bankers are at a critical juncture, 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 at today\u2019s rates.<\/span>\n <\/p>\n<\/p><\/div>\n \n If the answer is yes, don\u2019t worry too much about potentially missing out on lower rates later; refinancing is always an option down the road. Focus on getting <\/span> \n NerdWallet\u2019s <\/span> \n If you already have a quote you\u2019re satisfied 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 could be beneficial if today\u2019s 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.<\/span>\n <\/p>\n<\/p><\/div>\n \n With current rates, you might want to consider refinancing if your existing rate is around 6.54% 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 seeking a lower rate, utilize NerdWallet’s <\/span>\n
\n Average mortgage rates, last 30 days<\/span>
\n <\/span>
\n <\/h3>\n<\/p><\/div>\n\n
\n \ud83d\udcc9 When will mortgage rates drop?<\/span>
\n <\/span>
\n <\/h3>\n<\/p>\n
\n constantly changing,<\/span><\/span>
\n as a significant 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… you name it. Even minor fluctuations in the bond market can influence mortgage pricing.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n government shutdown<\/span><\/span>
\n <\/a>
\n has delayed crucial data about employment and inflation. The September jobs report has already been missed. On Friday, the <\/span>
\n
\n consumer price index report<\/span><\/span>
\n <\/a>
\n is set to be released \u2014 nine days late. Both reports are crucial for the <\/span>
\n
\n Federal Reserve<\/span><\/span>
\n <\/a>
\n ‘s decision-making process. Additionally, the National Association of Realtors will release the report on existing home sales for September on Thursday. While this report may not significantly impact financial markets, it provides insights into the housing market’s health.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n cut rates in September<\/span><\/span>
\n <\/a>
\n . For now, we will keep a close watch on the markets \u2014 as will the Fed.<\/span>\n <\/p>\n<\/p><\/div>\n\n
\n \ud83c\udfe1 Should I start shopping for a home?<\/span>
\n <\/span>
\n <\/h3>\n<\/p>\n
\n
\n preapproved<\/span><\/span>
\n <\/a>
\n , comparing lender offers, and understanding what monthly payment fits your budget.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n affordability calculator<\/span><\/span>
\n <\/a>
\n can assist you in estimating your potential monthly payment. If purchasing a new home isn\u2019t feasible right now, consider strengthening your buyer profile. Use this time to pay down existing debts and build your down payment savings. This will not only improve your cash flow for a future mortgage payment but also enhance your chances of securing a better interest rate when you\u2019re ready to buy.<\/span>\n <\/p>\n<\/p><\/div>\n\n
\n \ud83d\udd12 Should I lock my rate?<\/span>
\n <\/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 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
\n \ud83d\udd01 Should I refinance?<\/span>
\n <\/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><\/p>\n<\/p><\/div>\n<\/p><\/div>\n
\n
\n refinance calculator<\/span><\/span>
\n <\/a>
\n to estimate potential savings and understand how long it would take to break even on refinancing costs.<\/span>\n <\/p>\n<\/p><\/div>\n\n
\n \ud83e\uddd0 Why is the rate I saw online different from the quote I got?<\/span>
\n <\/span>
\n <\/h3>\n<\/p>\n