Mortgage rates continue to moderate at the start of 2024, according to the Mortgage Bankers Association. The average 30-year fixed rate is 6.76% – a full percentage point lower than just two months ago. Adjustable mortgage rates dipped under 6% for the first time since June 2023.
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. 3:
- 30-year fixed: 6.76% with 0.61 points (previous week: 6.71% with 0.55 points).
- 15-year fixed: 6.26% with 0.73 points (previous week: 6.41% with 0.5 points).
- 5/1 ARM: 5.71% with 0.59 points (previous week: 6.26% with 0.59 points).
- 30-year jumbo loans: 6.86% with 0.41 points (previous week: 6.85% with 0.34 points).
- 30-year FHA loans: 6.51% with 0.86 points (previous week: 6.5% with 0.73 points).
Kentucky Housing Corp. offers various programs to help eligible Kentucky homebuyers afford a home, such as down payment and closing cost assistance loans, federal income tax credits and low down payment options.
- Available to: Eligible Kentucky homebuyers.
- Income limits: Vary by county and household size (see income limits).
- First-time homebuyers only? No. Some consumers who have previously purchased a home may qualify based on location.
- Benefits: An annual federal income tax credit of up to $2,000 based on 20% of qualifying mortgage interest paid or accrued in a year, not to exceed the homeowner’s tax liability. Home purchase price limit is $311,997.
- Available to: Eligible Kentucky homebuyers.
- Income limits: 80% AMI income varies by county (see income limits).
- Minimum credit score: 660.
- First-time homebuyers only? No.
- Benefits: Down payment of 3%.
- Available to: Eligible Kentucky homebuyers.
- Income limits: Secondary market income limits vary by county (see income limits).
- Minimum credit score: 660.
- First-time homebuyers only? No.
- Benefits: Down payment of 3%.
- Available to: All Kentucky Housing Corp. first-mortgage loan recipients.
- Income limits: No.
- First-time homebuyers only? No.
- Purchase price limits: Up to $346,644 with secondary market.
- Benefits: Down payment and closing cost assistance loan of up to $7,500 repayable over 10 years at a 3.75% interest rate.
- Available to: Eligible Kentucky homebuyers.
- Income limits: Affordable DAP income limits vary by county (see income limits).
- First-time homebuyers only? No.
- Purchase price limits: Up to $346,644 with secondary market.
- Benefits: Down payment and closing cost assistance loan of up to $7,500 repayable over 10 years at a 1% interest rate.
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:
