Mortgage Rates On April 11, 2024: Due to the Federal Reserve’s lower federal funds rate, mortgage rates aren’t expected to drop much this week.
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Until inflation gets closer to 2%, the Fed can’t lower rates. In March, the Consumer Price Index showed a 3.5% year-over-year inflation rate, three basis points higher than in February.
Until inflation drops, the Fed is unlikely to reduce interest rates significantly. If you are financially ready to buy a house now, it may be better to start the process rather than wait.
Mortgage Rates On April 11, 2024
The national average 30-year mortgage rate on April 11, 2024 is 6.82%, up from 6.79% last week, according to Freddie Mac.
There has been a slight decrease in the average 15-year fixed mortgage rate. The 15-year mortgage rate on April 11, 2024 is 6.06%, down from 6.11% last week.
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A comparison of 30-year versus 15-year fixed mortgage rates
A 30-year fixed-rate mortgage and a 15-year fixed-rate mortgage lock in your rate for the entire term of the loan.
30-year mortgages are popular because of their low monthly payments. However, they come with a higher interest rate, so you’ll pay a lot more in interest over time.
The 15-year mortgage is great because it offers a lower interest rate than a longer term, you’ll pay less interest over time, and you’ll be able to pay it off sooner than if you had a 30-year mortgage. Because you’re paying off the same loan in half the time, your monthly payments will be higher.
In general, 30-year mortgages are cheaper month-to-month, while 15-year mortgages are cheaper over time.
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What is the maximum amount I can afford for a mortgage?
Housing expenses, including taxes and insurance, should not exceed 28% of your gross monthly income.
When rates are low, you’ll be able to borrow more, so shop around for the best deal. Don’t borrow more than what your budget can comfortably handle, and consider the impact of your mortgage payment on your whole budget.
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