{"id":1567,"date":"2024-12-26T11:58:15","date_gmt":"2024-12-26T11:58:15","guid":{"rendered":"https:\/\/www.soscip.org\/us\/?p=1567"},"modified":"2024-12-26T11:58:16","modified_gmt":"2024-12-26T11:58:16","slug":"mortgage-refinance-rates-today-december-26-2024","status":"publish","type":"post","link":"https:\/\/www.soscip.org\/us\/mortgage-refinance-rates-today-december-26-2024\/","title":{"rendered":"Mortgage and Refinance Rates Today, December 26, 2024: Should You Refinance Now or Wait?What to Expect in 2025?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">As 2024 comes to a close, mortgage and refinance rates are rising after a brief period of declines. With the Federal Reserve signaling a cautious approach to rate cuts in 2025, borrowers and homeowners may wonder what\u2019s next for mortgage rates and how to navigate the housing market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s dive into the current trends, rate breakdowns, and insights on what this means for your finances.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#todays-mortgage-rates\">Today&#8217;s Mortgage Rates<\/a><\/li><li><a href=\"#refinance-rates-today\">Refinance Rates Today<\/a><\/li><li><a href=\"#why-are-mortgage-rates-rising\">Why Are Mortgage Rates Rising?<\/a><\/li><li><a href=\"#how-mortgage-rates-are-determined\">How Mortgage Rates Are Determined<\/a><\/li><li><a href=\"#fixed-rate-vs-adjustable-rate-mortgages\">Fixed-Rate vs. Adjustable-Rate Mortgages<\/a><\/li><li><a href=\"#30-year-vs-15-year-mortgages\">30-Year vs. 15-Year Mortgages<\/a><\/li><li><a href=\"#what-to-expect-in-2025\">What to Expect in 2025<\/a><\/li><li><a href=\"#should-you-refinance-now-or-wait\">Should You Refinance Now or Wait?<\/a><\/li><li><a href=\"#final-thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"todays-mortgage-rates\"><strong>Today&#8217;s Mortgage Rates<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to Zillow, <a href=\"https:\/\/www.soscip.org\/us\/mortgage-refinance-rates-today-december-26-2024\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/us\/mortgage-refinance-rates-today-december-26-2024\/\">mortgage rates<\/a> have edged upward across most categories:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>30-year fixed:<\/strong> 6.73%<\/li>\n\n\n\n<li><strong>20-year fixed:<\/strong> 6.78%<\/li>\n\n\n\n<li><strong>15-year fixed:<\/strong> 6.14%<\/li>\n\n\n\n<li><strong>5\/1 ARM:<\/strong> 6.81%<\/li>\n\n\n\n<li><strong>7\/1 ARM:<\/strong> 6.75%<\/li>\n\n\n\n<li><strong>30-year VA:<\/strong> 6.19%<\/li>\n\n\n\n<li><strong>15-year VA:<\/strong> 5.57%<\/li>\n\n\n\n<li><strong>5\/1 VA:<\/strong> 6.38%<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These rates are national averages and rounded to the nearest hundredth. Adjustable-rate mortgages (ARMs) and VA loans remain competitive options for certain borrowers, but rates are still elevated overall compared to historical lows seen in recent years.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"refinance-rates-today\"><strong>Refinance Rates Today<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Mortgage refinance rates show a similar trend, with most rates slightly higher than purchase mortgage rates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>30-year fixed:<\/strong> 6.86%<\/li>\n\n\n\n<li><strong>20-year fixed:<\/strong> 6.58%<\/li>\n\n\n\n<li><strong>15-year fixed:<\/strong> 6.07%<\/li>\n\n\n\n<li><strong>5\/1 ARM:<\/strong> 6.14%<\/li>\n\n\n\n<li><strong>7\/1 ARM:<\/strong> 6.64%<\/li>\n\n\n\n<li><strong>30-year VA:<\/strong> 6.19%<\/li>\n\n\n\n<li><strong>15-year VA:<\/strong> 5.96%<\/li>\n\n\n\n<li><strong>5\/1 VA:<\/strong> 5.79%<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Although refinancing can be a smart move to reduce your monthly payments or consolidate debt, the current rate environment means borrowers should carefully weigh their options before proceeding.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-are-mortgage-rates-rising\"><strong>Why Are Mortgage Rates Rising?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The increase in rates follows the Federal Reserve&#8217;s December meeting, where Chair Jerome Powell announced plans for only two federal funds rate cuts in 2025, down from the previously anticipated four cuts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Federal Reserve\u2019s cautious stance reflects ongoing uncertainty in the economy and inflation. Mortgage rates, which often mirror the direction of the federal funds rate, are expected to remain elevated for much of 2025.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-mortgage-rates-are-determined\"><strong>How Mortgage Rates Are Determined<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"factors-you-can-control\"><strong>Factors You Can Control<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Borrowers have some influence over the rates they receive. To secure the best deal, focus on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credit Score:<\/strong> Higher scores typically mean lower rates.<\/li>\n\n\n\n<li><strong>Debt-to-Income Ratio (DTI):<\/strong> Keeping this ratio low improves your borrowing profile.<\/li>\n\n\n\n<li><strong>Down Payment:<\/strong> A larger down payment can unlock better rates.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"factors-you-cant-control\"><strong>Factors You Can\u2019t Control<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">External factors like economic trends play a significant role:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inflation:<\/strong> Rising inflation can push rates higher as lenders demand higher returns.<\/li>\n\n\n\n<li><strong>Federal Reserve Policies:<\/strong> Adjustments to the federal funds rate influence mortgage rate trends.<\/li>\n\n\n\n<li><strong>Economic Strength:<\/strong> Strong employment figures and consumer spending often lead to higher rates.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fixed-rate-vs-adjustable-rate-mortgages\"><strong>Fixed-Rate vs. Adjustable-Rate Mortgages<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"fixed-rate-mortgages\"><strong>Fixed-Rate Mortgages<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Advantages:<\/strong> Your rate is locked for the entire loan term, offering stability and predictability.<\/li>\n\n\n\n<li><strong>Disadvantages:<\/strong> Fixed rates tend to be higher than initial ARM rates.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"adjustable-rate-mortgages-ar-ms\"><strong>Adjustable-Rate Mortgages (ARMs)<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Advantages:<\/strong> ARMs offer lower initial rates for a fixed period (e.g., 5 or 7 years), potentially saving you money upfront.<\/li>\n\n\n\n<li><strong>Disadvantages:<\/strong> Rates adjust periodically after the fixed period, which can lead to higher payments if rates rise.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"30-year-vs-15-year-mortgages\"><strong>30-Year vs. 15-Year Mortgages<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"30-year-fixed-mortgages\"><strong>30-Year Fixed Mortgages<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pros:<\/strong> Lower monthly payments, making homeownership more affordable month-to-month.<\/li>\n\n\n\n<li><strong>Cons:<\/strong> Higher overall interest costs due to the longer repayment period.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"15-year-fixed-mortgages\"><strong>15-Year Fixed Mortgages<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pros:<\/strong> Lower interest rates and faster loan payoff reduce long-term costs.<\/li>\n\n\n\n<li><strong>Cons:<\/strong> Higher monthly payments can strain your budget.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/2025-financial-forecast-banking-credit-cards\/\" data-type=\"post\" data-id=\"1496\">2025 Financial Forecast: Key Trends in Mortgages, Investing, Banking, and Credit Cards<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/top-16-short-term-cds-maximize-your-returns-2025\/\" data-type=\"post\" data-id=\"1448\">Top 16 Short-Term CDs to Maximize Your Returns  in 2025<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/refinancing-your-mortgage-2025-experts-predict\/\" data-type=\"post\" data-id=\"1453\">Refinancing Your Mortgage in 2025: What Experts Predict and How to Prepare<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/heloc-vs-home-equity-loan-right-choice-2025\/\" data-type=\"post\" data-id=\"1444\">HELOC vs. Home Equity Loan: Making the Right Choice for 2025<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/home-equity-loan-or-reverse-mortgage-2025\/\" data-type=\"post\" data-id=\"978\">Home Equity Loan or Reverse Mortgage: Which is the Best Choice for 2025?<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-to-expect-in-2025\"><strong>What to Expect in 2025<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Mortgage rates are unlikely to return to the historic lows of 2020 and 2021 anytime soon. Experts anticipate a gradual decline in rates over the next year but caution that significant decreases are improbable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Fed\u2019s current outlook suggests the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Two rate cuts in 2025 (likely in Q1 and Q2).<\/li>\n\n\n\n<li>A pause on further cuts after mid-year to monitor inflation and economic stability.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"should-you-refinance-now-or-wait\"><strong>Should You Refinance Now or Wait?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Refinancing could still be worthwhile if it aligns with your financial goals. Consider refinancing if:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Your Current Rate Is Significantly Higher:<\/strong> A difference of 1%-2% may justify the costs.<\/li>\n\n\n\n<li><strong>You Plan to Stay Long-Term:<\/strong> Calculate your break-even point to see when savings outweigh closing costs.<\/li>\n\n\n\n<li><strong>You Need to Consolidate Debt:<\/strong> Using home equity to pay off high-interest debt can be a strategic move.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final-thoughts\"><strong>Final Thoughts<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As we head into 2025, borrowers should prepare for sustained elevated rates. Whether you\u2019re considering purchasing a home or refinancing your mortgage, now is the time to shop around, improve your financial profile, and explore options like ARMs or VA loans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With careful planning, you can navigate this high-rate environment and make smart financial decisions. Keep an eye on market trends, and don\u2019t hesitate to consult a mortgage expert for personalized guidance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As 2024 comes to a close, mortgage and refinance rates are rising after a brief period of declines. With the Federal Reserve signaling a cautious approach to rate cuts in 2025, borrowers and homeowners may wonder what\u2019s next for mortgage rates and how to navigate the housing market. Let\u2019s dive into the current trends, rate&nbsp;<a class=\"read-more\" href=\"https:\/\/www.soscip.org\/us\/mortgage-refinance-rates-today-december-26-2024\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":1586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/1567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/comments?post=1567"}],"version-history":[{"count":7,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/1567\/revisions"}],"predecessor-version":[{"id":1587,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/1567\/revisions\/1587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media\/1586"}],"wp:attachment":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media?parent=1567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/categories?post=1567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/tags?post=1567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}