Mortgage Rates Today, Friday, August 28: Mostly Flat

Yes, mortgage interest rates are higher today, but only by a little.

The average interest rate on a 30-year, fixed-rate mortgage rose to 6.53% APR, according to rates provided to NerdWallet by Zillow. This is two basis points higher than yesterday but two basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.

Next week, the Nerds will be looking at the August jobs report as a complement to this week’s inflation report. The inflation report (called the Personal Consumption Expenditures Price Index, or PCE) showed that inflation trended up a little higher than expected in July.

While this is one of the core reports that the Federal Reserve considers when setting monetary policy, analysts don’t expect that the data will be enough to move the needle. According to CME FedWatch, the likelihood of central bankers holding borrowing rates steady again at their mid-September meeting is still over 60%.

Next Friday’s jobs report will give central bankers — and the futures traders who predict their every move — the most up-to-date window into the current employment situation.

Wall Street is tentatively forecasting that the private sector will have added 59,000 jobs, but the overall picture is less clear. Investors will be watching to see whether last month’s net loss continued into August, or if it was a blip.

Another net loss would likely increase the odds that the Fed will hold borrowing rates steady in September. Its main alternative would be to raise borrowing rates, which typically hurts employment.

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 may want to start considering a refi if your current rate is around 7.03% 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.

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