Written by Rene Bermudez | Edited by Crissinda Ponder | Updated October 31, 2024
Mortgage rate news: Are refinance rates going to drop?
The current mortgage interest rates forecast is for rates to move closer to 6% — potentially even trending closer to 5.5% — as 2024 continues. Our senior economist, Jacob Channel, recommends cautious optimism as we head into the fall homebuying season.
Here are the U.S. weekly average rates from the Freddie Mac Primary Mortgage Market Survey, as of October 31, 2024:
- 30-year fixed-rate mortgage: 6.72%
- 15-year fixed-rate mortgage: 5.99%
30-year rates increased by 0.18 percentage points and 15-year rates rose by 0.28 percentage points this week. Mortgage rates have stayed under 7% since June and, until recently, had been slowly falling for 4 months. But, although this is the fifth week in a row we’ve seen rates rise, it could just be a fluctuation that won’t disrupt that overall downward trend.
The Federal Reserve announced its first rate cut of the year on September 18th. That same week, 30-year mortgage rates dropped to their lowest point in over two years. We can also expect two more cuts this year, according to Jacob Channel, LendingTree’s senior economist. If that happens, mortgage rates could fall under 6%, or even as low as 5.5% by the end of 2024.
The next Federal Reserve meeting is scheduled for November 6th through 7th.
How are refinance rates determined?
Refinance rates are based on both factors you can control, like your personal finances, and some you can’t, like the market environment.
To get a lower mortgage refinance rate, you need to get your credit score as high as you can, save for a larger down payment amount, and choose the right type of mortgage loan for you.
Also remember to get offers from three to five lenders before moving forward with a loan offer. This will save you thousands of dollars over time.
Learn more about how to improve your credit score.