Mortgage rates crept higher across the board this week, with the average 30-year fixed rate increasing, slightly to 6.81%, according to the Mortgage Bankers Association.
Mortgage interest rates are forecasted to decline somewhat throughout 2024, as the Federal Reserve projects rate cuts will begin sometime this year. Here are the current mortgage rates, as of Jan. 10:
- 30-year fixed: 6.81% with 0.61 points (previous week: 6.76% with 0.61 points).
- 15-year fixed: 6.41% with 0.55 points (previous week: 6.26% with 0.73 points).
- .5/1 ARM: 6.17% with 0.56 points (previous week: 5.71% with 0.59 points).
- 30-year jumbo loans: 6.98% with 0.43 points (previous week: 6.86% with 0.41 points).
- 30-year FHA loans: 6.56% with 0.84 points (previous week: 6.51% with 0.86 points).
Alabama Housing Finance Authority has three homebuyer assistance programs Alabama homebuyers can use to help purchase a home. They include down payment assistance loans, closing cost grants and federal income tax credits.
- Available to: Eligible Alabama homebuyers using HFA Advantage conventional, Federal Housing Administration or Veterans Affairs loans.
- Income limits: Vary by loan type and potentially by county (see income limits).
- First-time homebuyers only? No.
- Benefits: Up to 4% down payment assistance ($10,000 maximum) in the form of a second mortgage with a 10-year term.
- Available to: Eligible Alabama homebuyers using HFA Advantage conventional loans.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only? No.
- Benefits: A grant of up to 1% to help with closing costs.
- Available to: Eligible Alabama homebuyers using conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages.
- Income limits: Vary by area (see income limits).
- First-time homebuyers only? No.
- Benefits: A federal income tax credit that varies from 20% to 50% of the annual interest paid based on the loan amount.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
