Mortgage Rates Today, Wednesday, September 17: Still Near One-Year Low

Mortgage interest rates saw a tiny bump today, but these are still some of the best mortgage rates we’ve seen in the last 12 months.

The average interest rate on a 30-year, fixed-rate mortgage rose to 6.12% APR, according to rates provided to NerdWallet by Zillow. This is four basis points higher than yesterday and 14 basis points lower than a week ago. (See our chart below Spongebob for more specifics.) A basis point is one one-hundredth of a percentage point.

The Federal Reserve kicked off its two-day September meeting yesterday, building up to the much-anticipated announcement coming at 2 PM Eastern Time today. Markets believe a 25-basis-point cut to the federal funds rate (the short-term borrowing rate the Fed actually sets) is pretty much a lock. As has often been the case lately, mortgage rates have gotten an early start.

Mortgage interest rates might have dropped all they can by the time the Fed makes it official. But if the central bankers are predicting additional rate cuts before the end of the year — there are two more meetings in 2025 — mortgage rates could fall further.

Mortgage rates are constantly changing, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news… you name it. For example, even tiny changes in the bond market can shift mortgage pricing.

This week the Nerds are focusing on the Sept. 16-17 meeting of the Federal Reserve’s monetary policy committee. The Fed is expected to reduce the overnight lending rate to support job creation. That’s a sign that the central bank is more concerned about the job market than about inflation. If inflation were the Fed’s main worry, it likely would leave the federal funds rate unchanged.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget.

NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Take 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, it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.

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.

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 could start considering a refi if your current rate is around 6.62% or higher.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you might be more comfortable with paying a higher rate for a cash-out refinance than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet’s refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.

The rate you see advertised is a sample rate — usually for a borrower with perfect credit, making a big down payment, and paying for mortgage points. That won’t match every buyer’s circumstances.

In addition to market factors outside of your control, your customized quote depends on your:

• Location and property type

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

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.