Mortgage Rates Today, Jan. 3, 2025: Mortgage Rates at 6-Month High
The average 30-year fixed rate mortgage is 6.97% today, an increase of 0.01% since yesterday. The 15-year fixed mortgage rate stands at 6.03%, up by 0.04%. The 30-year FHA mortgage now averages 6.31%, having risen by 0.08. Meanwhile, the 30-year jumbo mortgage rate is 7.35%, reflecting an increase of 0.01%.
The bigger picture
In its weekly rates update yesterday, Freddie Mac reported: "Inching up to just shy of seven percent, mortgage rates reached their highest point in nearly six months. Compared to this time last year, rates are elevated and the market’s affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise."
Those rates have been on an upward trajectory since the Federal Reserve's events on Dec. 18. That day, the Fed halved to two the number of cuts to general interest rates it expects to make this year.
That was a body blow to markets and mortgage rates. But they should have adjusted to the shock by now. And we can hope they'll settle down.
That's likely to mean that mortgage rates will respond more typically to economic reports, which are normally their main drivers of change. The next seriously consequential report is due one week today and is the jobs report. There are a few lesser reports between now and then but those usually move mortgage rates only a bit and then temporarily.
Mortgage Rate Trends: Past 90 Days
Purchase Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.97% | 7.01% | +0.01% | +0.24% |
| 15-Year Fixed | 6.03% | 6.09% | +0.04% | +0.21% |
| 30-Year Fixed FHA | 6.31% | 7.14% | +0.08% | +0.27% |
| 30-Year Fixed VA | 6.32% | 6.48% | +0.08% | +0.3% |
| 30-Year Fixed USDA | 6.25% | 6.39% | -0.04% | +0.26% |
| 30-Year Fixed Jumbo | 7.35% | 7.37% | +0.01% | +0.15% |
| 5/6 Year ARM | 6.83% | 6.87% | +0% | +0.19% |
Refinance Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 7.04% | 7.08% | +0.02% | +0.21% |
| 15-Year Fixed | 6.01% | 6.07% | +0.03% | +0.2% |
| 30-Year Fixed FHA | 6.29% | 7.12% | +0.09% | +0.29% |
| 30-Year Fixed VA | 6.33% | 6.49% | +0.08% | +0.31% |
| 5/6 Year ARM | 6.89% | 6.92% | +0% | +0.25% |
Coming up
Although economic reports are the main drivers of changes to mortgage rates, they're not the only ones. The general mood in markets and economically consequential news can also affect those rates.
Mortgage rates today
Today brings December's auto sales, which will dribble out as individual manufacturers release their figures. But the report that's more likely to influence mortgage rates today is a purchasing managers' index (PMI) for the manufacturing sector from the Institute for Supply Management.
Markets are expecting this to have slowed to 48.0% (revised since yesterday) in December compared with 48.4% in the previous report. We'd like to see a lower number than 48.1% to have a decent chance of lower mortgage rates.
Next week
Next Monday's calendar has only November's factory orders, which rarely affect mortgage rates perceptibly. More interesting reports are due on subsequent days but we have to wait until next Friday for a blockbuster: the jobs report for December.
We'll brief you on each potentially consequential report before it's published.
