Mortgage Interest Rates Today, January 26, 2024 | As Rates Drop, Borrowers Could Save Hundreds Each Month (2024)

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Mortgage rates have inched up a bit over the past few days, but they're still relatively low compared to where they were in the fall of 2023, and rates should go down further in 2024.

Average 30-year mortgage rates increased to 6.69% this week, according to Freddie Mac, a nine-point increase from the previous week's average.

"The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week," Sam Khater, Freddie Mac's chief economist, said in a press release. "Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace."

When rates peaked in October 2023, average 30-year rates spiked up to 7.79%. On a $250,000 mortgage, this would amount to a $1,798 monthly mortgage payment. But with this week's average rate, a borrower would only pay $1,612 per month on that same loan amount — a $186 difference each month.

Lower mortgage rates can make a huge difference in how much you end up paying on your monthly housing payment, making homeownership more affordable for a larger number of people. In fact, Fannie Mae is currently predicting that rates could fall to 5.8% by the end of this year, which would translate to a $1,467 monthly payment on that $250,000 loan.

Mortgage Rates Today

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Mortgage Refinance Rates Today

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Mortgage Calculator

Use ourfree mortgage calculatorto see how today's mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator



$1,161 Your estimated monthly payment

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Total paid


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Interest paid


Ways you can save:

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you'll see how your monthly payment could change.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate was 6.69% last week, according to Freddie Mac. This is just nine basis points higher than it was last week.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms or adjustable rates.

15-Year Fixed Mortgage Rates

Average 15-year mortgage rates were 5.96% last week, according to Freddie Mac data, which is a 20-basis-point increase from the previous week.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.

Are Mortgage Rates Going Down?

Mortgage rates increased throughout most of 2023. But mortgage rates are expected to trend down in the coming months and years.

In the last 12 months, the Consumer Price Index rose by 3.4%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.

For homeowners looking toleverage their home's valueto cover a big purchase — such as a home renovation — ahome equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.

Current HELOC ratesare relatively low compared to other loan options, including credit cards and personal loans.

How Do Fed Rate Hikes Affect Mortgages?

The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.

Mortgage rates aren't directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.

Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.

Molly Grace

Mortgage Reporter

Molly Grace is a reporter at Insider. She covers mortgage rates, refinance rates, lender reviews, and homebuying articles for Personal Finance Insider. Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership. You can reach Molly at, or on Twitter @mollythegrace.

As an expert in the field of mortgage rates and home financing, I bring a wealth of knowledge and practical experience to the table. My expertise is demonstrated through a deep understanding of the factors influencing mortgage rates, the intricacies of various mortgage types, and the broader economic trends affecting the housing market.

Firstly, let's delve into the information presented in the provided article:

  1. Current Mortgage Rates:

    • The article mentions that average 30-year mortgage rates have increased to 6.69%.
    • Despite this increase, the rates are still relatively low compared to the fall of 2023.
    • Freddie Mac's chief economist, Sam Khater, indicates that the 30-year fixed-rate has stabilized in a narrow range, prompting potential homebuyers with affordability concerns to re-enter the market.
  2. Historical Context:

    • In October 2023, mortgage rates peaked at 7.79%, significantly higher than the current 6.69%.
    • The article highlights the impact of these rate changes on monthly mortgage payments, illustrating a $186 difference on a $250,000 mortgage.
  3. Market Predictions:

    • Fannie Mae predicts that rates could fall to 5.8% by the end of the year, potentially leading to a $1,467 monthly payment on a $250,000 loan.
  4. Mortgage Calculator:

    • The article provides a mortgage calculator tool allowing readers to estimate their monthly payments based on factors such as home price, down payment, loan length, and interest rate.
    • It suggests ways to save money, such as increasing the down payment or lowering the interest rate.
  5. Mortgage Types:

    • The article discusses the two most common mortgage types:
      • 30-Year Fixed Mortgage: Offers a 30-year repayment period with a stable interest rate, making monthly payments more manageable.
      • 15-Year Fixed Mortgage: Provides a shorter term with lower interest rates, potentially saving on long-term interest costs, but with higher monthly payments.
  6. Market Trends:

    • Mortgage rates increased throughout most of 2023, but the article anticipates a downward trend in the coming months and years.
    • The Consumer Price Index's rise of 3.4% in the last 12 months is noted, and a correlation is drawn between inflation, Federal Reserve rate cuts, and potential future decreases in mortgage rates.
  7. HELOC (Home Equity Line of Credit):

    • The article suggests considering a HELOC as an option for homeowners looking to leverage their home's value for significant purchases while waiting for mortgage rates to ease.
    • HELOCs allow borrowing against home equity without replacing the entire mortgage.
  8. Federal Reserve Impact:

    • The Federal Reserve's aggressive rate hikes in 2022 and 2023 led to spikes in mortgage rates.
    • The article explains that while mortgage rates aren't directly impacted by changes in the federal funds rate, they often move in anticipation of such changes.
  9. Author Information:

    • The article is authored by Molly Grace, a Mortgage Reporter at Insider. Molly's background includes writing for Rocket Companies, where she focused on educational articles about mortgages, homebuying, and homeownership.

In summary, the article provides a comprehensive overview of the current mortgage rate landscape, historical context, market predictions, and practical advice for potential homebuyers. The inclusion of a mortgage calculator and insights into various mortgage types adds depth to the information, making it a valuable resource for anyone navigating the homebuying process.

Mortgage Interest Rates Today, January 26, 2024 | As Rates Drop, Borrowers Could Save Hundreds Each Month (2024)


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