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).
District of Columbia homebuyers can get help with down payments and closing costs and receive competitive interest rates or a federal tax credit from these DC Housing Finance Agency (DCHFA) programs.
- Available to: Eligible homebuyers purchasing a home in D.C. who have a minimum credit score of 640 and maximum debt-to-income ratio of 50%.
- Income limits: Borrower income maximum of $145,560.
- First-time homebuyers only?: No.
- Benefits: Competitive or below-market interest rates and lower mortgage insurance costs on first trust mortgages, down payment assistance loan of up to 3.5% in the form of a 0%, no monthly payment loan due at the sale, refinance or transfer of the property or when the property ceases to be your primary residence.
- Available to: Eligible D.C. homebuyers who have not owned a home in the last three years, except for residences in targeted areas or veterans using a one-time exception, purchasing single-family residences with a sales price of $530,000 or less and loan amount of $510,400 or less.
- Income limits: Vary by area and household size.
- First-time homebuyers only?: No.
- Benefits: A federal tax credit of 20% of the mortgage interest paid during each calendar year.
- Available to: Eligible D.C. homebuyers who are the head of household, have not owned a home in the last three years, have a good credit rating and are purchasing a home as their primary residence.
- Income limits: Vary by household size.
- First-time homebuyers only?: No.
- Benefits: Up to $4,000 in closing cost assistance and up to $80,000 in down payment assistance in the form of a deferred interest-free loan.
- Available to: Eligible D.C. homebuyers who are full-time D.C. government employees with no homeownership interest in a primary residence during the past three years and no property interests at the time of settlement. The borrower must have a minimum credit score of 640 and a debt-to-income ratio that doesn’t exceed 50%. The maximum loan amount cannot exceed $484,350 and the maximum sales price cannot exceed $525,000.
- Income limits: Household income cannot exceed 120% of the area median income.
- First-time homebuyers only?: No.
- Benefits: A first trust mortgage at a reduced interest rate and up to 3% down payment assistance in the form of a 0% deferred subordinate loan.
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:
