Mortgage interest rates have been trending higher over the past 30 days, leading to potentially increased costs for new borrowers of approximately $30 per month for every $100,000 borrowed. As of this week, the average U.S. interest rate for 30-year fixed-rate mortgages stands at 6.54%, up from 6.08% a month ago. However, forecasts for future interest rate changes remain mixed as the recent short-term interest rate reduction caused a spike in mortgage interest rates.
When comparing current rates with the long-term average of 7.72%, homeowners are saving about $80 per month per $100,000 borrowed. Additionally, mortgages are now less expensive than they were a year ago. Over the past year, the average decrease in monthly payments for a $100,000 30-year fixed-rate mortgage is around $60. If you were to max out a conventional mortgage today, your monthly payment would be approximately $460 less than it would have been in October 2023