Mortgage Rates for January 7, 2025
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At its December 18 meeting, the Federal Reserve announced a quarter-point rate cut, marking its third consecutive reduction. Despite cutting rates by a whole percentage point since September, mortgage rates have increased by 0.71 percentage points over the same period, according to Bankrate. Economic conditions, inflation, elections, and global events influence mortgage rates, which typically follow the 10-year Treasury yield. Melissa Cohn, regional vice president of William Raveis Mortgage, notes the Fed’s decision was anticipated and included a 0.25 percent rate cut. She also highlighted the Fed’s lowered expectations for additional rate cuts in 2025.
All rate data is accurate as of January 7, 2025, at 7:30 a.m. ET.
Today’s 30-year mortgage interest rate
Today, the average 30-year fixed mortgage rate is 7.04 percent. The average rate was lower just a month ago, at 6.73 percent. At this rate, monthly payments total $665.30 per $100,000 borrowed in principal and interest.
Today’s 15-year mortgage interest rate
The latest average rate for a 15-year fixed mortgage is 6.35 percent. At this rate, monthly payments total $863 per $100,000 borrowed.
Consumers should shop around to get the best deal. Rates below national averages are available. FreeRateUpdate.com has verified fixed mortgage rates as low as 6.625 %, with a 6.694 % APR available today in our mortgage lender network.
