Mortgage Interest Rates Today, April 23, 2024 | Rates Hold Steady, but They Could Move Later This Week
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Mortgage rates haven't changed much over the last week, but they could move up or down later this week depending on how a couple of big economic reports turn out. Currently, 30-year mortgage rates remain near 7%, according to Zillow data.
On Thursday we'll get gross domestic product data showing how much the US economy grew in the first quarter of 2024. Then, the latest personal consumption expenditures price index, a key measure of inflation, will be released on Friday. If these reports come in hotter than expected, mortgage rates could tick up higher.
The core PCE price index, which strips out food and energy, is the Federal Reserve's preferred inflation gauge. This index is expected to come in a bit lower than last month's reading, which would be good news for mortgage rates.
Mortgage rates will likely remain elevated until inflation slows further and the Fed is able to start lowering the federal funds rate. Investors are currently pricing in September for the first Fed cut, according to the CME FedWatch Tool. This means we could see mortgage rates start to trend down in fall.
But first, we'll need to see a few months of data showing that inflation is actually coming down. If the latest inflation data remains sticky, mortgage rates could stay high for even longer.
Today's mortgage rates
Today's refinance rates
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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.
Mortgage Rate Projection for 2024
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.
Many forecasts expect rates to fall this year now that inflation has been coming down. But recently, data has been somewhat sticky, so we may need to wait a bit longer for rates to go down. In the last 12 months, the Consumer Price Index rose by 3.5%. This is a significant slowdown compared when it peaked at 9.1% in 2022, but a slight uptick from the previous month's reading. We'll likely need to see more slowing before rates can drop substantially.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
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 3.20% in 2024 and 0.30% in 2025, while the Mortgage Bankers Association expects a 4.10% increase in 2024 and a 3.30% increase in 2024.
Sky high mortgage rates have 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.
What Happens to House Prices in a Recession?
House prices usually drop during a recession, but not always. When it does happen, it's generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.
How Much Mortgage Can I Afford?
A mortgage calculator 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.
Typically, experts 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.
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.
