Why is a 30-year fixed mortgage a higher interest rate?

Higher interest rate. Because the lender is tying up its money longer, 30-year fixed mortgage rates are higher than on loans with shorter terms, such as 15 years. More interest overall. You pay more interest over the life of a 30-year mortgage because you make more payments.

What is the average rate on a 30-year fixed mortgage?

The average rate on a 30-year fixed mortgage stayed at 7 percent this week, according to Bankrate’s latest lender survey. Mortgage rates held firm despite the Federal Reserve’s November quarter-point rate cut.

Is a 30-year fixed-rate mortgage more expensive in 2024?

With rates above 6% for a 30-year fixed-rate mortgage, there's no denying that financing a home is more expensive in 2024 than it was over the previous few years – average rates on 30-year fixed mortgages didn't even crack 4% between June 2019 and March 2022. However, those low rates had some unwelcome side effects for many homebuyers.