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It’s not exactly a pot of gold, but mortgage interest rates are a little lower today.
The average interest rate on a 30-year, fixed-rate mortgage ticked down to 6.13% APR, according to rates provided to NerdWallet by Zillow. This is nine basis points lower than yesterday but 22 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
While rates are lower today compared to yesterday, mortgage rates have generally been trending upward since the start of the war in Iran. The conflict sparked new inflation fears, with hikes in mortgage rates mirroring increasing oil prices. While borrowers enjoyed rates below 6% earlier this year, we likely won’t see that again until oil prices come down.
Average mortgage rates, last 30 days
📉 When will mortgage rates drop?
This week, all eyes are on the Federal Reserve. Central bankers at the Fed are scheduled to meet today and tomorrow, when they’re widely expected to keep the federal funds rate as-is in the face of economic uncertainty. (The federal funds rate indirectly influences mortgage rates.) The Fed is tasked with balancing inflation with the employment situation, which looks weaker than expected: February’s jobs report showed the U.S. lost 92,000 jobs last month, compared to a projected gain of 50,000.
Meanwhile, we got two major inflation reports last week. The Consumer Price Index (CPI) showed that inflation remained steady in February at 2.4%. The Personal Consumption Expenditures (CPE) — the Fed’s preferred measure — showed core inflation at 2.8% and signs of weaker consumer spending in January.
After attacks on ships in the Strait of Hormuz, a key oil shipping route, nervous markets have already sent oil prices surging. When oil supply drops, unemployment and inflation can go up — rippling through the economy to disrupt those steady near-6% mortgage rates we’d all gotten accustomed to since January.
Refinancing might make sense 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).
With rates where they are right now, you may want to start considering a refi if your current rate is around 6.63% or higher.
🏡 Should I start shopping for a home?
There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.
🔒 Should I lock my rate?
Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.
🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay to commit.
🧐 Why is the rate I saw online different from the quote I got?
In addition to market factors outside of your control, your customized quote depends on your:
Even two people with similar credit scores might get different rates, depending on their overall financial profiles.
👀 If I apply now, can I get the rate I saw today?
Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.
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