A sluggish housing market for most of last year began to heat up as the calendar turned to 2024.
In recent weeks, however, the market has cooled once again.
A surge in mortgage rates accounts for the slowdown in the housing market, experts told ABC News, pointing to elevated home prices pushed out of reach for most consumers when combined with high borrowing costs.
The jump in mortgage rates is due to stubbornly high inflation that has delayed interest rate cuts at the Federal Reserve, experts said. Mortgage rates track yields on 10-year treasury bonds, which are highly sensitive to the Fed’s benchmark rate.
“High mortgage rates and high housing prices have led to an affordability problem of a dimension that we haven’t seen in decades,” Susan Wachter, a professor of real estate at University of Pennsylvania’s Wharton School of Business, told ABC News.
The average interest rate for a 30-year fixed mortgage has soared to 6.9%, rebounding after a steady decline at the end of last year, according to a report from Freddie Mac on Thursday.
Meanwhile, home sales have plummeted. Mortgage-purchase applications fell 10% from a week earlier, data from the Mortgage Bankers Association on Wednesday showed.
“Existing home sales have fallen off a cliff,” Lu Liu, also a professor at the Wharton School at the University of Pennsylvania, told ABC News.
The housing market dynamic traces back to a highly anticipated announcement in December, during which the central bank revealed expectations of interest rate cuts in 2024.
The signal elicited a boost of optimism among key market players, who foresaw the end of the Fed’s fight against inflation and the decline of interest rates from near-historic highs. In turn, yields fell on 10-year treasury bonds, and mortgage rates soon followed suit.
Inflation, however, has refused to cooperate. Stronger than expected economic performance and resilient consumer demand have helped buoy price increases, keeping them above the Fed’s target rate.
“The strengthening of the economy is a surprise,” Wachter said. “It does raise questions about the Fed’s next steps.”
Consumer prices rose 3.1% in January compared to a year ago, slowing markedly from the previous month but missing expectations of an even larger cooldown, a report from the Bureau of Labor Statistics earlier this month showed.
Inflation stands well below a peak of 9% last year but remains more than a percentage point above the Fed’s target rate of 2%.
“The inflation rate is reflected in the 10-year treasury rate, which pushes mortgages up,” Wachter said.
When the Fed initiated the rise of bond yields with its first rate hike of the current series in March 2022, the average 30-year fixed mortgage rate stood at just 4.45%. The average mortgage is now nearly 2.5 percentage points higher.
Each percentage point increase in a mortgage rate can add thousands of dollars, or even tens of thousands, in additional costs each year, depending on the price of the house, according to Rocket Mortgage.
The rising mortgage rates have put a freeze on the housing market in part because home prices remain high, Liu said. Potential homebuyers would rather stick with mortgages that have comparatively low rates rather than shift to higher rates that would compound the elevated home prices, she added.
“A lot of people are holding back from moving or selling,” Liu said.
Observers would expect home prices to fall amid low consumer demand, but the stubbornly high housing costs may be owed to that reluctance among prospective homebuyers to first put their own homes up for sale, Liu added.
“It’s a little bit of a puzzle why home prices have remained stable or even ticked up,” Liu said. “Home owners may be buying, but they’re not selling.”
A new year brings a fresh start. Maybe in 2024 you’re trying to refresh your skincare routine or resolving to read more. But as you work on yourself, don’t forget to give your home some TLC.
This year is bringing unique and luxurious styles to the forefront of home décor. There’s an abundance of home trends to embrace—from textured fabric to textured walls, dainty bows to soft round edges, and even glamorously ornate stylings.
While you don’t need to abandon your style, let these trends serve as inspiration for ways to refresh your space. Here are the top 10 home décor trends of 2024.
1. Bouclé fabric
Move over velvet—bouclé is the latest fabric everyone wants. Made of looped wool or synthetic fibers, bouclé is a textured fabric often coming in soft pastel and neutral colorways. Nick Drewe, a trend expert at Wethrift, spotted bouclés rise in popularity, especially on TikTok; the hashtag #bouclechair has over 62.4 million views on the social media site.
To join in on this interior design trend, go for this chic, yet affordable chair from Drew Barrymore’s line at Walmart, which has a rotating base and comes in an darling shade of sage or a sleek white.
Beautiful Drew Chair
Lounge in style with this luxe rotating chair.
2. Bows
Credit:
Reviewed / Meri Meri / McGee & Co.
There’s no limit to what season bows can be used in.
Yes, maybe you just put away bows for the holiday season, but they’re not going anywhere. Bows are everywhere—from clothes to hair, and now your home.
These dainty ties add a feminine flair to your home design. Bows is one of the most versatile design trends of 2024. They can go anywhere, like your table with delicate taper candles from Meri Meri, and even your bathroom with this sweet shower curtain by McGee and Co.
Multi Bow Taper Candles
You’re sure to see a surge in ‘coquette’ home décor this year.
Lillian Linen Shower Curtain
These bow accents are subtle, but will offer a different feel.
3. Peach tones
Credit:
Reviewed / Ruggable / Holli_zollinger
Pantone’s “Peach Fuzz” should absolutely be on your mood board this year.
The Pantone Color of the Year is Peach Fuzz, a cheery color ready to brighten up your home’s color palette. It’s a vibrant pastel that works wonderfully as a decorative pop of color.
Ruggable, which makes our favorite washable rugs, has an exclusive line featuring Pantone Peach Fuzz. We love this tufted rug that features a playful geometric print. Or, you can go all out with a peachy accent wall using Spoonflower wallpaper.
Pantone Peach Fuzz Neutral Grid Play Tufted Rug
Peach Fuzz can add that pop of color you need.
Peach Fuzz Pantone Color of the Year Wallpaper
A bold accent wall is calling your name this year.
4. Cozy neutral colorscapes
Credit:
Reviewed / BedThreads. / CB2
Try adding deeper earth tones to achieve a moodier vibe around your home.
Brown is the new go-to shade of neutral. While black, navy, and gray usually get all the attention when it comes to neutrals, 2024 is the year of brown. Not only is it a perfect compliment to the vibrancy of peach, but it’s a gorgeous way to add depth and warmth.
Bedding is an easy way to incorporate brown into your home. Refresh your bedroom with a set of cozy linen sheets in a deep cocoa color like these from BedThreads. Or, try brown curtains for a moody display. These curtains from CB2 are a rich brown that will make your home feel luxurious.
Cacao 100% French Flax Linen Bedding Set
You’ll feel luxurious sleeping atop these earthy linen sheets.
Chocolate Brown Velvet Window Curtain Panel
Feeling moody going into the new year? Try these floor length curtains.
5. Curved furniture
Credit:
Reviewed / Orren Ellis / West Elm
Make waves with curvy furniture that is both unconventional and distinctive.
This year, rather than going for sharp, angular pieces of mid-century modern furniture, try rounded curves. This softer approach, especially through furniture, can make a statement.
Have fun with a new coffee table that swaps hard edges for smooth curves. This cloud-like coffee table is unique and cultivates a dreamy living room vibe.
Or if you’re in the mood for a new couch, try this low-profile curved sectional from West Elm.
Bothnian Cloud Shape 4 Legged Coffee Table
This abstract coffee table is the perfect mesh of modern and contemporary home décor.
Laurent 2-Piece Wedge Chaise Sectional
You’ll dream of sinking into this eccentric sectional.
6. Furniture made out of cardboard
Credit:
Reviewed / 2modern / Yona Furniture
In 2024, we’re using less wood and more cardboard.
Sustainability continues to be an important pillar of this year’s home design forecast, with cardboard furniture trending as one of the greenest ways to furnish your home.
You’d never think that cardboard could be sturdy enough to hold your mattress, but it is! Cardboard is one of the most sustainable fibers as it’s made from recycled materials rather than newly harvested ones—and it can be surprisingly sophisticated.
Cardboard furniture may be rising in popularity, but it’s been around for almost 50 years. The Wiggle Stool by Frank Gehry is crafted from perforated cardboard and makes a contemporary and stylish seat.
Yona makes cardboard bed frames that are supremely sturdy, holding over 7,000 pounds. If you don’t want to spend a lot of money but want the cute platform bed style, a cardboard frame is worth a look.
Wiggle Stool
A cardboard stool that takes upcycling to new levels.
Yona Cardboard Bed
Yona Furniture’s cardboard pull out bed is great for the environment.
7. Concrete walls
Credit:
Reviewed / Brewster
Faux brick walls are a thing of the past—try faux concrete instead.
Industrial style stands the test of time, but it’s getting a new look in 2024. Rather than steel, exposed brick and natural wood, it’s the year of concrete. This rough, natural material adds some nice texture to your home. It looks best in bathrooms and kitchen backsplashes.
However, if you can’t build a concrete wall in your home, you can still get the look with wallpaper. This Brewster wallpaper looks like concrete, so you can create a statement wall masterpiece.
Quimby Grey Faux Concrete Wallpaper
Don’t worry, this faux concrete wallpaper is renter-friendly.
8. Ornate-inspired interiors
Credit:
Reviewed / Astoria Grand / Rifle Paper Co. x Cloth & Company
Maximalists will appreciate the appeal of bold metallics and eye-catching florals.
Some of the most popular movies and TV shows of the past year—think White Lotus, The Gilded Age, and Saltburn—feature ornate backdrops full of European-inspired homes with gorgeous plastered walls and rich fabrics. For the maximalists, tuning into this ornate style will feel natural.
This style embraces plaster and concrete walls decked out with gold trim and bold pieces of artwork.
Bring the style to your own home with gold accessories and satin florals. Hang your photos with a gold ornate frame like this one from Wayfair that’s beautifully decorated.
Rifle Paper Co. makes furniture in their gorgeous prints and this settee looks like it’s out of a stunning villa.
Greyson Wood Picture Frame
If simplicity isn’t your thing, try a fancier frame for your favorite photos.
Rifle Paper Co. x Cloth & Company Louie Settee
This settee comes in 12 different eye-catching patterns.
9. Bold tile patterns
Credit:
Reviewed / Merola Tile / MSI
May your next home DIY project be filled with new tiles and a satisfying end result.
When it comes to tiling, this is the year to go bold. While crisp white tile is a popular choice for bathrooms and kitchens, it’s a little dated. In 2024, go for patterned tiles. We love floral patterned tile that can deck your walls and floors.
If you don’t want to stray too far from white tiles, this mosaic tile comes in a simple black and white floral motif.
For something a little bolder, this porcelain tile features a gorgeous blueprint that will make your home stand out.
Metro 1 in. Hex Matte White with Flower
Replace old backsplashes and tile flooring with a dreamy upgrade.
Encaustic Tamensa Matte Porcelain Floor and Wall Tile
These tiles looks like they’re hand-painted with a glossy sheen finish.
10. Curtains that let the light in
Credit:
Reviewed / Jinchan / Home Decorators Collection
Don’t forget to upgrade your windows with the rest of your home.
After years of embracing colorful lights inside your home with sunset lamps and smart bulbs, it’s time to embrace your home’s natural light.
To let in all the light possible, reassess your curtains—without sacrificing privacy. Instead, try keeping shades on just the bottom half of your windows. Short cafe curtains, like these striped ones from Amazon, are cute and allow light to drift in, creating a sense of airiness in your home.
If you don’t want to abandon blinds, install top-down-bottom-up blinds that are light-filtering and also allow greater flexibility of coverage.
Striped Tier Curtains
Pinstripe curtains that can make any kitchen look farmhouse-chic? We’re sold.
Cordless Light Filtering Cellular Shades
Filter light to your liking with these cordless shades.
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Mortgage servicers, regulators and economists are closely watching the delinquency rates for Federal Housing Administration (FHA) loans following a spike in the fourth quarter of 2023.
Industry experts say that although there’s a correlation between unemployment and delinquency rates, some homeownership costs — including insurance — have increased significantly over the past two or three years, which has had a strong financial impact on homeowners. But experts also say the situation is not as bad as the one experienced during the COVID-19 pandemic.
The sources spoke about these issues during this week’s Mortgage Bankers Association (MBA) Servicing Solutions Conference & Expo in Orlando.
The latest MBA data shows that the delinquency rate for one- to four-unit properties rose to 3.88% at the end of 2023, compared to 3.62% in the third quarter, but still below the historic average of 5.25%. Meanwhile, the FHA-insured loan delinquency rate recorded a larger jump during the same period to 10.81%, up from 9.5%, the highest level since Q3 2021.
“We are seeing a bit of a pickup for two quarters in a row, but it’s very important to keep in mind that we were at the absolute lowest point in delinquencies in the third quarter of 2023,” Marina Walsh, MBA vice president of industry analysis, research and economics, said in a market outlook session.
According to Walsh, the delinquency rate for FHA loans increased by 130 basis points from the third to fourth quarters, but the current level is “certainly not nearly where it was at the height of COVID-19.”
In addition, she said that foreclosures are not picking up, so borrowers are either paying off their loans before entering the severe delinquency stage, or if they are in the serious delinquency stage, they are entering a workout.
“The question I posed to all of you is, ‘Is this a blip or a bigger trend?’” Walsh said, adding that based on data MBA has received from the industry, she believes the delinquency rate could come down a bit in first-quarter 2024 following the end of the busy holiday shopping season.
“All these increases in costs impact people’s ability to pay, without question,” Steven R. Bailey, senior managing director and chief servicing officer at PennyMac Financial Services, said in an executives’ perspective session. “But we still see the strongest correlation is between unemployment and delinquency.”
Bailey said that although increases in delinquencies are not a trend that servicers want to see, “I don’t look at it with the same fear that I used to look like.”
Homeowners insurance
According to industry experts, one of the costs affecting homeowners is their insurance, which can lead to increases in delinquencies. California and Florida are among the states where the situation is more evident.
Seven of the 12 largest insurers in California have either paused or restricted new policies over the past 18 months, including State Farm and Allstate. In September, the state’s top insurance regulator announced that new rules are in the works to persuade insurers to remain.
In Florida, the departure of many insurers and reinsurers has resulted in homeowners paying an average of nearly $4,000 a year, almost three times the U.S. average, according to estimates from the Insurance Information Institute. In some instances, homeowners have seen their insurance costs more than triple, but a new bill seeks to help them.
“That’s a combination of both rates from a carrier perspective, as well as just the increase in home values,” Patrick A. Sullivan, vice president of industry relations and compliance at Assurant, said in a session about homeowners insurance.
Sullivan said reinsurance is another factor weighing on homeowners insurance costs, a function of the global capital markets. He added that reinsurance costs have more than tripled over the past three years.
“Homeowners insurance is certainly a problem we need to tackle together,” John Bell, executive director of loan guaranty service at the U.S. Department of Veteran Affairs (VA), said during a regulatory session.
“I hope that there are others on this panel and others out there that want to work together to try to solve some of those rising prices that our homeowners just can’t absorb, and at some point in time, it’s going to hurt the market.”
Bell said that if a home costs $800 per month more than last year, the industry needs to figure out how to solve it. Bell and the VA are working to move forward with options to help veterans avoid foreclosure, including a partial claim solution.
FHA Commissioner Julia Gordon, who announced the agency’s new payment supplement partial claim during the conference, added that the issue of homeowners insurance will take a village to tackle.
“And that’s going to take real work in the states also, which is hard, and we just have to do it if we want people to be protected,” Gordon said.
The average savings account interest rate as of February 2024 is only 0.46%, according to the Federal Deposit Insurance Corp. Cash App’s savings yield, however, is competitive with some of the best high-yield savings accounts available. Putting your money in a high-yield product that earns 4.50% can help your savings grow much faster over time. Here’s an example:
According to a compound interest calculator, if you have a $1,000 balance in an account that earns 4.50%, you would earn just under $47 in interest after a year. That same $1,000 in a basic savings account that earns only 0.5%, for example, would earn only about $5 in that same time frame. Neither amount makes you instantly rich, but the extra money adds up over time.
Mortgage rates continued their ascension toward 7% this week, raising doubts about the approaching spring homebuying season.
The 30-year fixed-rate mortgage averaged 6.90% as of Feb. 22, an increase from last week’s figure of 6.77%, according to Freddie Mac’s Primary Mortgage Market Survey released on Thursday.
Meanwhile, the 15-year fixed rate averaged 6.29% this week, up from 6.12% during the prior week. And HousingWire’s Mortgage Rates Center showed that Polly’s average 30-year fixed rate for conventional loans was 7.19% on Thursday, up from 7.09% at the same time last week.
“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
“Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”
Even though the Federal Reserve’s Federal Open Market Committee (FOMC) expressed cautious optimism at its meeting in January, policymakers are in no rush to apply rate cuts in 2024. In the FOMC minutes released on Wednesday, members of the committee indicated that no cuts should be expected until the rate-setting body held “greater confidence” that inflation was receding.
Recent surges in new listings bode well for a strong homebuying season this spring. But rising mortgage rates could disrupt the plans of many rate-sensitive buyers, especially in a market where consumers were anticipating lower mortgage rates, according to Realtor.com economist Jiayi Xu.
“Consequently, it is crucial for homebuyers to safeguard their budget against rate fluctuations by utilizing a mortgage calculator to comprehend the impact of mortgage rate changes on their payments and purchasing plans,” Xu said in a statement.
From Feb. 22 to May 22, 2024, certain American Express cardholders can earn elevated rewards if they refer a friend for their own AmEx card, and that person applies and is approved by May 22.
AmEx cardholders who meet the promotion requirements will get an additional 10x Membership Rewards or 10% cash back per dollar spent at restaurants worldwide. The new rewards rates are valid for 3 months, or up to $25,000 in purchases. (Terms apply.)
AmEx cardholders with the following cards are eligible for this offer:
Thanks to American Express’ flexible referral rules, referral recipients aren’t restricted to applying for a card within the same family as the referring friend. For example, if you receive a referral from someone with an AmEx card that earns cash back or Membership Rewards, you may apply for any personal or business AmEx card. However, when the referring cardholder has a co-branded card such as the Delta Gold, the referral recipient may apply only for a co-branded card in the same family.
Is this a good deal?
Earning an extra 10x rewards or 10% more cash back is a great opportunity, especially when those rewards can be had with minimal effort: Sending a referral is as easy as clicking a few buttons online or within the AmEx app. As long as the recipient is approved for the card they apply for, you’ll get that temporary rewards boost.
Say you have the American Express® Gold Card, which earns 4x Membership Rewards at restaurants. If you meet the terms of the referral offer, you’ll earn a stunning 14x on dining. Terms apply.
Those rewards can be redeemed in a number of ways, but you’ll likely get the better value by transferring them to one of AmEx’s travel partners. NerdWallet estimates that 1 Membership Reward is worth 2 cents when transferred.
To view rates and fees of the American Express® Gold Card, see this page.
Ready for a nostalgia-filled jaunt back to the ’90s, complete with plaid miniskirts and oversized cell phones?
This time, we’re diving into something a tad more tangible than Cher Horowitz’s enviable wardrobe: her iconic Beverly Hills mansion. Or so we thought.
Buckle up, because we’re about to spill the tea on the real location of Cher’s Beverly Hills mansion – and trust us, Alicia Silverstone’s character would definitely not be on board with the address.
Picture this: the sprawling, sun-kissed mansion where Cher and Josh shared that oh-so-sweet kiss. The kitchen where a clueless Cher attempted to bake, and the lavish pool where the gang chilled to Kids In America.
Feels like a page taken straight out of the Beverly Hills, 90210 handbook, right? Plot twist: the real deal is nestled not in the hills of Beverly but in the Valley!
Alicia Silverstone as Cher Horowitz and Paul Rudd as Josh in a Clueless scene taking place on the winding staircase. Photo credit: IMDB
That’s right, Cher’s house is actually in Encino, in the San Fernando Valley.
But here’s the kicker: the Encino location, a suburban neighborhood, is quite the departure from the Beverly Hills glam portrayed in the movie.
Not only that, but Cher would have HATED being called a Valley Girl (a term that we owe to musician Frank Zappa, btw).
Photo credit: IMDB
In the 1995 movie, the San Fernando Valley is mentioned and featured in a few scenes, notably when Cher is robbed at gunpoint in a parking lot after mistakenly driving onto the freeway, leading to a very stressful situation for her.
This scene is one of the few direct interactions Cher has with the Valley, showcasing her sheltered Beverly Hills life clashing with the broader Los Angeles area.
The real-life ‘Clueless’ house in Encino
So first, let’s get something out of the way: while Hollywood movies have long used the San Fernando Valley / Beverly Hills divide to highlight the social and geographical contrasts within the city (first example that comes to mind is Karate Kid and the new Cobra Kai sequel series), Encino is actually a very sought-after and safe neighborhood.
In fact, the median sale price for Encino homes in early 2024 stands at a hefty $1,900,000.
While that’s considerably less than what Beverly Hills homes sell for (the median sale price for the ritzy, star-studded neighborhood is $3.7M), houses in Encino are notoriously luxurious — with significantly more square footage than their counterparts in the Hills.
And Cher’s Clueless house is no exception.
Streetview image of the Clueless house located at 5148 Louise Ave in Encino, CA. Image credit: Google Maps
This 9,441-square-foot behemoth boasts 7 bedrooms and 10 bathrooms, and commands yearly property taxes north of $40k. Built in 1993, just a hop and a skip before Clueless hit the big screen, its fresh design had us all green with envy.
However, it’s worth noting that scenes taking place inside the house were filmed elsewhere, on a soundstage.
The house, sitting pretty at 5148 Louise Ave on a 2-acre lot, hasn’t switched hands since it was built back in 1993. The last publicly recorded sale was a land transaction in 1980 for $680,000.
Fast forward to today, and the house is pegged at a cool $7 million. Not too shabby, huh? But, surprisingly, it’s considerably cheaper than the next Clueless house on our list.
Dionne’s real Beverly Hills digs
Now, let’s dish about Dionne’s house. Unlike Cher’s Encino residence, Dionne’s Tudor-style mansion truly sits in the heart of Beverly Hills.
Boasting similar specs to Cher’s house but with a Beverly Hills zip code, this property screams luxury — and is considerably more expensive than the Horowitz residence.
The house at 705 N Sierra Dr in Beverly Hills, which played the part of Dionne’s house in Clueless. The property currently sitting on this lot looks very different today. Photo credit: Google Maps
Last sold in 2008 for over $10 million, its current value hovers around $17 million – making it way pricier than Cher’s home.
But it’s also worth noting that the house that sits on the lot today is completely different from the Tudor-style home that graced our screens three decades ago.
Property records show that the house at 705 N Sierra Dr in Beverly Hills sold twice since the movie’s 1995 debut: once in 1998, when it commanded a $3,350,030 sale price, and then again in 2008, when it sold for three times that amount, $10,650,000. So it does look like in between these two owners, a new house was built on the 0.51-acre lot.
Other real ‘Clueless’ filming locations
Our Clueless journey doesn’t end at Cher and Dionne’s doorstep.
Remember the fictional Bronson Alcott High? Those scenes came to life at Occidental College and Ulysses S. Grant High School.
And who could forget the Westside Pavilion mall escapades or the mugging at Circus Liquor? Not to mention Cher’s post-failed driver’s test meltdown on Rodeo Drive.
Los Angeles served as the ultimate backdrop, bringing the Clueless universe to life with its diverse filming locations.
And the most unique of them was surely the famous Spadena House — also known as the Witch’s house in Beverly Hills — a unique storybook home that was only featured on-screen for a few seconds, but that captivated movie fans for years after.
The unique storybook house known as The Spadena House also made an appearance in the 1995 classic. Photo credit: IMDB
The Beverly Hills illusion
So, what’s the takeaway from our stroll down Clueless lane? First, it’s that movie magic can transform any location into a narrative’s heart and soul. Cher’s “Beverly Hills” mansion, firmly rooted in Encino, serves as a perfect example.
As we celebrate nearly three decades since Clueless graced our screens, let’s remember the film for what it truly offered: a comedic, stylish, and somewhat educational tour of Los Angeles’ diverse neighborhoods.
In the end, Cher’s house, much like the film itself, remains a beloved piece of ’90s pop culture. Its real-life Encino location only adds to the charm and intrigue of the “Clueless” legacy.
As for us? We’re totally buggin’ over the fact that movie magic can make us believe anything – even that Cher’s mansion was actually in Beverly Hills.
It wouldn’t be the first time tough. We also long thought that the Fresh Prince house is actually in Bel Air (spoiler, it’s not!).
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Mortgage rates rose for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.
Mortgage rates could gradually come down this year, according to Greg McBride, CFA, Bankrate chief financial analyst. As the Federal Reserve stopped raising rates in 2023, mortgages rates started to drop at the end of Q4. At its Jan. 31 meeting, the central bank announced it would hold off changing rates and pointed to three rate cuts this year. Rate hikes and cuts affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says McBride. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
Rates as of February 14, 2024.
The rates listed above are averages based on the assumptions here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, February 14th, 2024 at 7:30 a.m.
30-year fixed-rate mortgage moves up, +0.15%
The average rate for a 30-year fixed mortgage for today is 7.25 percent, up 15 basis points over the last week. Last month on the 14th, the average rate on a 30-year fixed mortgage was lower, at 7.01 percent.
At the current average rate, you’ll pay principal and interest of $682.18 for every $100,000 you borrow. That’s an additional $10.15 per $100,000 compared to last week.
The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance premiums and property taxes go up or, less likely, down.
Buying power: With lower payments, you might qualify for a larger loan amount or a more expensive home.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
15-year fixed mortgage rate advances, +0.13%
The average rate for the benchmark 15-year fixed mortgage is 6.61 percent, up 13 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $877 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 adjustable rate mortgage moves higher, +0.03%
The average rate on a 5/1 ARM is 6.14 percent, rising 3 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.14 percent would cost about $609 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo loan interest rate advances, +0.16%
The average rate you’ll pay for a jumbo mortgage is 7.32 percent, up 16 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was lesser at 7.06 percent.
At the current average rate, you’ll pay a combined $686.93 per month in principal and interest for every $100,000 you borrow. That’s up $10.85 from what it would have been last week.
Mortgage refinance rates
30-year mortgage refinance advances, +0.09%
The average 30-year fixed-refinance rate is 7.28 percent, up 9 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 7.22 percent.
At the current average rate, you’ll pay $684.21 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $6.10 higher.
Where are mortgage rates heading?
At its meeting concluding Jan. 31, the Federal Reserve announced it was maintaining its current rate due to a resilient economy and strong jobs numbers. Policymakers also signaled the potential for three rate cuts in 2024.
“Inflation is coming down faster than has been expected but that will need to be sustained before the Fed feels comfortable cutting short-term interest rates,” says McBride. “Easing inflation pressures will help mortgage rates now, no waiting.”
Still, don’t expect rates to change drastically anytime soon.
“The budget deficit remains high, and the various inflation metrics remain above the comfort level,” says Lawrence Yun, Chief Economist with the National Association of Realtors. “That means the mortgage rates will likely be in the 6 percent to 7 percent range for most of the year.”At its meeting concluding Jan. 31, the Federal Reserve announced it was maintaining its current rate due to a resilient economy and strong jobs numbers. Policymakers also signaled the potential for three rate cuts in 2024.
“Inflation is coming down faster than has been expected but that will need to be sustained before the Fed feels comfortable cutting short-term interest rates,” says McBride. “Easing inflation pressures will help mortgage rates now, no waiting.”
Still, don’t count on mortgage rates plummeting in the near future.
“The budget deficit remains high, and the various inflation metrics remain above the comfort level,” says Lawrence Yun, Chief Economist with the National Association of Realtors. “That means the mortgage rates will likely be in the 6 percent to 7 percent range for most of the year.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. The specific rate you’d qualify for is tied to your credit score, loan type and other variables.
What current rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
To help you uncover the best deal, get at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Many of us are looking for ways to trim our grocery bills, and for good reason: Americans spent about $5,700 a year on food at home in 2022, according to the U.S. Bureau of Labor Statistics. While earning more rewards on grocery purchases can help, the Meijer credit card unfortunately falls short, even for loyalists of the Michigan-based retailer. Issued by Citibank, the Meijer card’s rewards rate is a shade higher than 1%, but any potential savings can easily be negated by the card’s outrageous interest rate.
For better options, check out our list of best credit cards for groceries, some of which earn as much as 6% cash back. Admittedly, the cards with the best rates require at least good credit (690 and above) to qualify, but there are solid options on the market for lower credit scores, too, such as the Citi Double Cash® Card.
1. There are two versions of the card
If your Meijer credit card application is approved, you’ll end up with one of two versions of the card:
The Meijer Card. A closed-loop card, it can only be used at Meijer grocery stores and gas stations.
The Meijer Mastercard. As an open-loop card, it can be used anywhere Mastercard is accepted.
A Citi representative confirmed that creditworthiness is a factor in determining which card an applicant receives.
2. Rewards are underwhelming
Many credit cards earn rewards based on certain spending categories. You might find a card that earns 4x points on dining and another that gets 3% cash back on gas. The Meijer card keeps things much simpler, though this simplicity comes at a price in the form of meager rewards.
Meijer cardholders get a $10 reward for every $750 spent with the card, which works out to an earnings rate of 1.33% cash back on every purchase. It’s not hard to find a card that earns more. If you had the Citi Custom Cash® Card, for example, you could get 5% cash back at grocery stores as long as that’s your highest spending area for the month. (The 5% rate applies up to $500 per billing cycle; after that, the card earns 1%.)
Rewards earned with the Meijer credit card are issued either as paper or digital certificates; the former expires 60 days from the issue date while the latter expires after 45 days. Furthermore, those $10 rewards certificates can’t be redeemed on alcohol, prescriptions, gift cards, store pickup orders and home delivery orders.
3. The sign-up bonus is skimpy
As of February 2024, the Meijer card has a sign-up bonus, albeit a really small one. New cardholders can get up to $50 off a Meijer purchase. They’ll get a $10 discount off the first in-store purchase made within 30 days of account opening, plus an additional $40 off if that purchase is made by March 2, 2024. There’s no minimum purchase requirement to get the sign-up bonus.
For a better welcome offer, consider this one from Blue Cash Everyday® Card from American Express: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Terms Apply. And the Blue Cash Everyday earns 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases; 1% thereafter. Terms apply.
To view rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.
4. The interest rate is sky-high
As of January 2024, the purchase APR on the Meijer card was 34.24%, more than 10 percentage points higher than the average APR on interest-accruing credit cards in November 2023, according to the Federal Reserve. That means that carrying a balance on the Meijer card can be costlier than on other cards.
To avoid paying interest on any credit card, pay off balances in full whenever possible.
5. Cardholders get a small discount on gas
You’ll get 10 cents off every gallon when you fill up at a Meijer gas station and pay with a Meijer credit card. Those savings aren’t terribly exciting on their own; however, the discount from the Meijer card is stackable with points earned through mPerks, Meijer’s loyalty program. Members of mPerks earn 10 points for every $1 spent at Meijer stores and 1,000 points for every qualifying prescription filled.
The information related to the Meijer credit cards has been collected by NerdWallet and has not been reviewed or provided by the issuer or provider of this product or service.