The mortgage rate climate of the last two years has been less than ideal. 

After mortgage rates plummeted in 2020 and 2021 in response to the pandemic, they surged in 2022 and 2023 in response to inflation and an elevated benchmark interest rate. By last summer they were at their highest level since 2000. And while they’ve come down slightly since, they’re still not where most buyers would prefer they be. The average mortgage rate for a 30-year loan stands at 7.03% as of March 8, 2024, more than double what they were a few years ago.

That said, there are still effective ways to get a lower mortgage rate now. It will just take a bit more work and action on behalf of the borrower to get it. Below, we’ll break down three of the best ways to get a lower mortgage rate now.

See what rate you could qualify for here.

3 of the best ways to get a lower mortgage rate now

Here are three effective ways to get a lower mortgage rate in today’s climate.

Check rates daily

Mortgage rates change daily, influenced by a number of factors. So, the rate you see today may be different tomorrow and different from the one the day after that. While rates usually don’t rise or drop dramatically from day to day, it makes sense to check them daily – and lock one in when they’re favorable for you. 

And with another inflation report set to be released on March 12, and the next Federal Reserve meeting set for March 19 and March 20, there are bound to be changes in the rate climate in the weeks to come. So by being well-versed in the daily rate environment, you’ll know exactly when to act.

Check today’s mortgage rates here now.

Be prepared to act quickly

Since rates change each day, buyers who are seriously looking to move should be prepared to act quickly. A poor inflation report, a Federal Reserve announcement or even a hint at cuts or rate hikes to come can all change rates. It makes sense, then, to be prepared to act before any of those factors cause rates to rise. 

So, for example, if most economists predict a rate hike announcement, it can be beneficial to act aggressively before it is made official. If it doesn’t come to fruition you can always unlock and re-lock a lower rate before closing — or you can refinance in the future. If you’re not prepared to act quickly, however, you could lose your ideal window of opportunity. 

Know all of your options 

Just because today’s rates are high doesn’t mean you have to get stuck paying the average. There are two simple ways to get a below-average rate in any environment, including now. By buying mortgage points, your lender will offer you a rate below the average (think 6.50% with points versus 7% without them, for example). The points will have to be paid to the lender in the form of an upfront fee at closing or rolled into the overall mortgage loan, but it may be worth it if it means a significantly lower rate than what could have otherwise been secured.

An adjustable-rate mortgage, on the other hand, is exactly what it sounds like. You’ll get a mortgage in which the rate fluctuates over time, but it will likely be lower to start than a fixed-rate one. While that unpredictability may not be ideal for some, an adjustable-rate mortgage won’t randomly change. You typically get a set period of years before the first rate change is implemented, and by then (hopefully) you can simply refinance into a lower, fixed-rate option.

Learn more about your mortgage rate options here today.

The bottom line

While the mortgage rates of March 2024 aren’t as good as those from March 2022 (or March 2020), buyers still have ways to get a below-average rate. By monitoring the rate environment daily, being prepared to act quickly and understanding mortgage points and adjustable-rate mortgage options now, buyers will be better prepared to secure a cheaper rate. It may not be the 3% rate of the recent past but it doesn’t have to be a record high, either.