Today's Mortgage Rates, November 13, 2024 | Rates Up As Markets Digest Warmer Inflation Report

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• Mortgage rates for November 13, 2024, are hovering around 6.60%.
• Rates rose in the run-up to the election in anticipation of higher inflation under a Trump presidency.
• Inflation ticked up last month. If inflation remains elevated in the coming months, mortgage rates could rise further.

Mortgage rates may not drop much until inflation comes down more.

In October, the consumer price index rose 2.6% year over year, an uptick from the previous month's reading of 2.4%. This data was in line with expectations, but represents the first time inflation has gone up since March 2024. 

Mortgage rates rose in the run-up to last week's election in anticipation of a Donald Trump win. Many economists and investors believe that President-elect Trump's proposed policies will reignite inflation, which would keep interest rates higher for longer.

Mortgage rates increased dramatically in 2022 as the Federal Reserve raised the federal funds rate to combat high inflation. Now, inflation is way down from when it peaked at 9.1% in June 2022, and the Fed has started lowering its benchmark rate. 

Investors still expect the Fed to lower rates again at its meeting in December, according to the CME FedWatch Tool. But more stubborn inflation data could push central bankers to take a more conservative approach to cutting rates at future meetings. This would keep mortgage rates elevated. 

Today's Mortgage Rates

Today's Refinance Rates

Mortgage Calculator

Use our free mortgage calculator to see how today's interest rates will affect your monthly payments:

By clicking on "More details," you'll also see how much you'll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

30-Year Mortgage Rates

Average 30-year mortgage rates are hovering in the mid-6% range, according to Zillow data. In October, 30-year rates averaged 6.24%. 

The 30-year fixed-rate mortgage is the most popular home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms, like a 15-year mortgage. 

15-Year Mortgage Rates

Average 15-year mortgage rates are in the high 5% range, according to Zillow data. In October, 15-year rates averaged 5.56%.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.

ARM Rates

Rates on adjustable-rate mortgages have been higher than fixed rates recently. Last month, the average mortgage rate for a 7/1 ARM was 6.57%, while the average rate for a 5/1 ARM was 6.60%, according to Zillow data.

When you get an ARM, you'll have a fixed mortgage rate for a certain period of time, after which your rate will adjust periodically. On a 7/1 ARM, for example, your rate will stay fixed for seven years, and then adjust once a year after that until you pay off the loan or refinance.

ARM rates are often (but not always) lower than their fixed-rate counterparts, making an ARM a good deal if you're looking to save on your monthly mortgage payment. But the risk with an ARM is that your monthly payment could increase if rates are up when your rate starts adjusting. 

FHA Interest Rates

FHA interest rates were 4.66% in October, but they're much higher this month.

FHA loans are insured by the Federal Housing Administration. This federal backing allows lenders to work with borrowers with lower credit scores and less money for a down payment, making these loans a good option for low-income and first-time homebuyers. They also typically have lower rates compared to conventional mortgages.

To get an FHA loan, you'll need a credit score of at least 580 and a down payment of 3.5%. If you can afford to put 10% down on a house, you could qualify for an FHA loan with a score down to 500, though not all lenders offer this option.

VA Mortgage Rates

Current VA mortgage rates are in the high 5% range, according to Zillow data. Last month, VA rates averaged 5.65%.

VA loans are available to veterans and military members who meet minimum service requirements. They're backed by the Department of Veterans Affairs, and require no down payment or mortgage insurance.

Mortgage Refinance Rates

Refinance rates have also been elevated recently. Last month, 30-year refinance rates averaged 6.35%, while 15-year refinance rates were around 5.67%.

How Much Do Mortgage Rates Need to Drop to Refinance?

If you're wondering if you should refinance now, you'll need to crunch the numbers to see if it makes sense. Some experts advise only refinancing if you can reduce your rate by a percentage point or more, but it really comes down to whether it works for your individual circumstances.

If you can save enough each month by refinancing that you can recoup your costs in a reasonable amount of time, it might be worth it. You can calculate this by dividing your closing costs by the amount you're saving on your monthly mortgage payment. So, if you paid $3,000 to refinance and were able to lower your monthly payment by $200, it would take you 15 months to break even on your refinance. 

5-Year Mortgage Rate Trends

Here's how 30-year and 15-year mortgage rates have trended over the last five years, according to Freddie Mac data.

What Factors Influence Mortgage Rates?

Mortgage rates are determined by a variety of different factors, including larger economic trends, Federal Reserve policy, your state's current mortgage rates, the type of loan you're getting, and your personal financial profile.

While many of these factors are out of your control, you can work on improving your credit score, paying off debt, and saving for a larger down payment to ensure you get the best rate possible. 

How Does the Fed Rate Affect Mortgage Rates?

The Fed increased the federal funds rate dramatically in 2022 and 2023 to try to slow economic growth and get inflation under control. Inflation has since slowed significantly, but it's still a bit above the Fed's 2% target rate.

Mortgage rates aren't directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed policy to affect the broader economy. 

The Fed has started lowering rates, but mortgage rates remain elevated thanks to uncertainty around how inflation will trend in the coming months and years.

Mortgage Rate Projection for 2024

Mortgage rates are expected to go down in 2025, but they may not drop much further this year.

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023. But as inflation decelerated and the Fed geared up to start cutting rates, mortgage rates eased somewhat. In the last 12 months, the consumer price index rose by 2.6%. This is a significant slowdown compared to when it peaked at 9.1% in 2022. However, mortgage rates are still relatively high.

How much rates go down depends on how the economy evolves. If economic conditions remain stable, mortgage rates may not fall as much. But if the labor market weakens and the Fed has to cut rates more aggressively, we could see rates drop substantially.

Rates are unlikely to drop back down to the historic lows of 2020 and 2021, when 30-year fixed rates fell below 3%. But we could see them settle in close to 5% in the next few years.

When Will House Prices Come Down?

We aren't likely to see home prices drop this year. In fact, they'll probably rise.

Fannie Mae researchers expect prices to increase 5.8% in 2024 and 3.6% in 2025, while the Mortgage Bankers Association expects a 3.8% increase in 2024 and a 1.6% increase in 2025.

High mortgage rates pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates have since eased, removing some of that pressure. The current supply of homes is also historically low, which will likely push prices up.

How Much Mortgage Can I Afford?

A mortgage calculator like the one above can help you determine how much house you can afford. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.

Experts often recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income. But you should take a holistic look at your budget and see how a mortgage payment fits into that, so you aren't relying solely on rules of thumb.

The lower your rate, the more you'll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.