Mortgage rates fall in January 2019
Anyone out to buy or refinance a home this month will find that current mortgage rates have fallen since hitting a high in November 2018.
That means it's best to shop for a mortgage now, while mortgage rates are still historically low.
The average interest rate on a conventional 30-year fixed-rate home loan is 4.68%.
Remember, that's the average cost of financing a home. Savvy borrowers with decent credit can almost always pay a quarter to half of a point less.
Spend a few minutes searching our extensive database for the best current mortgage rates from dozens of lenders in your area. You'll see what we mean.
National Average Mortgage Rates
|Type of loan||Current average||Record-low average||Established|
|30-year fixed rate||4.68%||3.50%||Dec. 5, 2012|
|15-year fixed rate||4.11%||2.75%||May 1, 2013|
|30-year fixed jumbo||4.55%||3.54%||Sept. 7, 2016|
|5/1 ARM||4.26%||2.63%||May 1, 2013|
The importance of comparison shopping
A report from the Consumer Financial Protection Bureau found that nearly half of Americans seriously consider only one lender or broker before applying for a mortgage. And about 75% fill out an application with only one lender.
We need to be doing more comparison shopping than that, especially when interest rates begin to rise. Comparison shopping for a great rate can save you thousands — hundreds of thousands in some cases — over the life of the loan.
RATE SEARCH: Compare the best mortgage rates.
Where mortgages rates are headed
Even though mortgage rates were expected to rise last year, that wasn't quite the case. While we've seen mortgage rates inch up, it hasn't been the drastic climb that some expected.
The average 30-year fixed-rate mortgage hit a high of 5.10% in November 2018, but it has fallen to just 4.68% today.
In addition, home loans are becoming easier to get.
Homebuyers who qualified for conventional loans had an average FICO credit score of 763 in 2012, according to Ellie Mae.
But by 2015, that had fallen to 754, which is about where it sat for all of 2017. But it was just 751 in November 2018.
The average FICO score for homeowners who refinanced through a conventional loan fell from 748 at the end of 2012 to 730 at the end of 2017. In November 2018, it was 732.
FHA loans clearly helped borrowers with too much debt and lower credit scores.
The average FICO score for those homebuyers has fallen from 718 at the end of 2012 to 676 in November 2018 for a purchase, 660 for a refinance.
Those are exactly the kinds of trends that help borrowers land the loans they need.
RATE SEARCH: Shop the best mortgage rates.