Mortgage Rates Today, Tuesday, March 24: Slightly Higher

Mortgage rates are up a little today as the war in Iran continues to rattle global markets.

The average interest rate on a 30-year, fixed-rate mortgage rose to 6.38% APR, according to rates provided to NerdWallet by Zillow. This is two basis points higher than yesterday and 31 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

You read that right: The 30-year is almost a third of a percentage point higher than where it was a week ago. Today’s little rise also puts NerdWallet’s current average just over half a percentage point (51 bp, to be exact) over where it was on the first business day of this month. I beat the “you can’t count on mortgage rates to keep going in the direction they’ve been going” drum pretty often, but dang, we didn’t need a turnaround this severe to prove that point. For more on why mortgage rates are rising so rapidly, keep reading after the chart.

Mortgage rates, on the other hand, are right there with the markets (and, let’s be honest, plenty of Americans). By “right there” I mean “low-key freaking out.” Mortgage rates had hit their lowest level since September 2022 at the end of last month, with that leftmost integer finally back at five. The war in Iran promptly reversed the downward movement we’d been seeing. Could an exit from the conflict cause mortgage rates to flip right back? It could, but we aren’t going to count on that.

Not to go all Carrie Bradshaw, but … and just like that, the U.S. was at war, mortgage rates jumped, and the highest gas price I spotted while running errands Sunday was $4.68 a gallon (I’m in Connecticut, if you think that sounds especially high or low compared to where you are).

The point is, just because mortgage rates are moving one way or the other doesn’t mean you can ever, and I mean EVER, count on them to keep going that way. We can only work with the information that’s available now.

Freddie Mac estimates that home buyers who compare quotes from two mortgage lenders could save as much as $600 annually, and comparing four or more lenders doubles that. Wherever mortgage rates are, don’t spend more on interest than you have to! Take that extra time to shop around.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you could start considering a refi if your current rate is around 6.88% or higher.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.