Connecticut Mortgage Rates for September 2019

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The average rate for a 30-year mortgage rate in Connecticut is currently 3.78%. The state's average rate on 15-year home loans is around 3.26%. As for Connecticut's adjustable rate mortgages (ARMs), the average initial rate for a 5/1 ARM is now 3.45%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.78%–0.01%–0.28%
15-year fixed3.26%–0.02%–0.28%
5/1 ARM3.45%+0.01%–0.12%
Rates for a $200,000 loan with 20% down payment

Interest rates and APRs are the easiest way to think about the relative cost of the different mortgage offers you'll come across as a homebuyer. What separates home loans from most other products is that rates change constantly. To help you navigate the shifting trends of home financing rates in Connecticut, we looked at estimates from some of the state's largest lenders as well as current market averages.

Best Mortgage Rates in Connecticut

Connecticut's lowest current rate for a 30-year mortgage is 3.38%. 15-year fixed-rate loans can be found at rates starting from 2.75%, while the state's lowest estimate for a 5/1 ARM came in with an initial rate of 2.75%. These estimates assume a purchase loan of $200,000 and a down payment of 20%.

Mortgage lenders don't share the exact details of the underwriting process with their customers, but it's common knowledge that rate quotes are influenced by the applicant's financial profile and the lender's response to the current market. While you can take steps to raise a credit score or eliminate debt in your financial profile, such methods aren't guaranteed to lower your mortgage rate.

With this kind of uncertainty in the mortgage underwriting process, the most effective way for borrowers to find a reasonable rate is by requesting more than one quote. While time-consuming, this is the only way to obtain numbers that apply directly to your particular loan scenario. Our findings on the average rate for mortgages in Connecticut should help you figure out whether your quotes are reasonable ones.

Current Mortgage Rate Forecast for Connecticut

Over the first quarter of 2019, interest rates have experienced general decline. In March, the Federal Open Market Committee (FOMC) announced that it would continue to remain patient regarding rates, ruling out previously anticipated rate hikes for 2019. It also announced that it aims to halt roll offs of its balance sheet by September of 2019. These signals indicate that it's likely for long-term rates to continue trending downwards.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This chart shows the rough correlation between the FOMC-controlled effective federal funds rate and the average 30-year mortgage rate in the U.S. Whenever the FOMC's policies push the federal funds rate higher, banks pass on the increased cost of borrowing to their customers in the form of higher consumer rates. For the time being, no rate hikes appear to be on the Committee's schedule.

In Connecticut, this means that the current dip in rates offers a good window for lower-than-expected rates if you're already considering a purchase. However, it doesn't provide justification to "buy now" regardless of your situation. Getting a mortgage requires careful financial planning for most people, and the promise of a low APR isn't quite as significant if you consider that rates have been historically low even before 2019.

Rates at Connecticut's Most Popular Mortgage Lenders

Although online mortgage lending has grown massively in recent years, the mortgage rates you'll find in your area still depend on brick-and-mortar lenders. To see how Connecticut's mortgage rates look, we identified some of the state's largest banks and obtained mortgage estimates from each one.

Column graph comparing 30-year mortgage rates at major Connecticut banks

The 30-year fixed-rate estimates in our one-time survey of Connecticut banks didn't vary by much, with a difference of just 25 basis points between the lowest and highest quoted rates. While these findings only represent a single point in time and a standard set of loan assumptions, they do suggest that lenders in the Nutmeg State don't get too far apart from one another in loan pricing.

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Comparing Home Loan Rates by City

Location is another factor to consider when buying a home, but the numbers we saw don't indicate that it matters much to the interest rate on your financing. Connecticut doesn't experience a wide variety of APRs from city to city. This may be for two reasons: Connecticut is a relatively small state, and the modern market for home financing follows nationwide trends rather than local patterns.

AreaAverage mortgage rateMedian home value
Hartford-East Hartford-Middletown4.46%$266,896
Bridgeport-Stamford-Norwalk4.51%$469,349
New Haven-Milford4.48%$262,818
Norwich-New London4.44%$121,440
Average rate is for a 30-year mortgage with a 20% down payment.

Like almost every other state, Connecticut doesn't provide evidence of major regional shifts in average mortgage rate. While the value of property is definitely tied to its location, the cost of financing is largely determined by what happens in the national economy and not on local demand. Where mortgage costs differ between cities in Connecticut, the cause is most likely the higher loan amounts needed in more expensive areas.

This provides the lead-in to another interesting question: how much does mortgage amount impact your rate? Based on what we've found, the answer seems to be that average rates don't really change alongside median home value. Unless you're on one of the extreme ends of the scale for loan amount, your mortgage rate will depend more heavily on your credit score, income, and existing debt ratios.

Evaluating Your Mortgage Options: An Example in New Haven

Given that the data we've seen shows few effects on mortgage rates , we can try and answer the question of how a borrower might lower their mortgage rate. Raising your credit score and paying off existing debt are solid but long-term strategies. For borrowers already signed to a purchase agreement, choosing the right type of mortgage is a more immediate tactic.

Consider someone who plans to buy a home in the New Haven area for $200,000 on a 20% down payment. Given Connecticut's current average 30-year rate, this would cost at least $744 per month. Over three decades, this loan costs $107,737 in total interest. The 30-year home loan is the classic default choice for American homeowners, but there are several alternatives for those seeking a minimized rate.

For example, anyone planning to move in a few years might benefit from an adjustable-rate mortgage (ARM). A 5/1 ARM offers generally lower fixed rates than a 30-year loan for the first five years, after which the rate varies annually depending on an index rate. In Connecticut, the average initial 5/1 ARM rate is 3.45%, or $715 per month. This changes if rates rise in year 6, but homeowners who plan to leave before then can take advantage of the lower payments.

Long-term buyers, on the other hand, should consider a 15-year fixed rate mortgage. Squeezing the same loan balance into half as many payments does raise your monthly bill, but it greatly reduces your total cost of interest. In our scenario, Connecticut's average 15-year rate of 3.26% leads to a minimum monthly payment of $1,126 but a lifetime interest cost of just $42,509.

Currently, Connecticut's average 30-year mortgage rate is at 3.78%. 15-year home loans in the Nutmeg State average 3.26%, while 5/1 adjustable-rate mortgages (ARMs) have an initial fixed rate average of 3.45%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.78%–0.01%–0.28%
15-year fixed3.26%–0.02%–0.28%
5/1 ARM3.45%+0.01%–0.12%
Rates for a $200,000 loan with 20% down payment

Most Nutmeggers who look for a mortgage know that interest rates are the easiest way to judge the cost of a loan. However, it's harder to understand the calculations and influences that go into the rates lenders are willing to offer. Because rate offers can change based on lender, borrower, and even timing, we've done some research to provide clarity on the overall state of mortgage rates in the Nutmeg State today.

Connecticut's lowest current rate for a 30-year mortgage is 3.38%. 15-year fixed-rate loans can be found at rates starting from 2.75%, while the state's lowest estimate for a 5/1 ARM came in with an initial rate of 2.75%. These estimates assume a purchase loan of $200,000 and a down payment of 20%.

Mortgage lenders don't share the exact details of the underwriting process with their customers, but it's common knowledge that rate quotes are influenced by the applicant's financial profile and the lender's response to the current market. While you can take steps to raise a credit score or eliminate debt in your financial profile, such methods aren't guaranteed to lower your mortgage rate.

With this kind of uncertainty in the mortgage underwriting process, the most effective way for borrowers to find a reasonable rate is by requesting more than one quote. While time-consuming, this is the only way to obtain numbers that apply directly to your particular loan scenario. Our findings on the average rate for mortgages in Connecticut should help you figure out whether your quotes are reasonable ones.

Over the first quarter of 2019, interest rates have experienced general decline. In March, the Federal Open Market Committee (FOMC) announced that it would continue to remain patient regarding rates, ruling out previously anticipated rate hikes for 2019. It also announced that it aims to halt roll offs of its balance sheet by September of 2019. These signals indicate that it's likely for long-term rates to continue trending downwards.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This chart shows the rough correlation between the FOMC-controlled effective federal funds rate and the average 30-year mortgage rate in the U.S. Whenever the FOMC's policies push the federal funds rate higher, banks pass on the increased cost of borrowing to their customers in the form of higher consumer rates. For the time being, no rate hikes appear to be on the Committee's schedule.

In Connecticut, this means that the current dip in rates offers a good window for lower-than-expected rates if you're already considering a purchase. However, it doesn't provide justification to "buy now" regardless of your situation. Getting a mortgage requires careful financial planning for most people, and the promise of a low APR isn't quite as significant if you consider that rates have been historically low even before 2019.

Although online mortgage lending has grown massively in recent years, the mortgage rates you'll find in your area still depend on brick-and-mortar lenders. To see how Connecticut's mortgage rates look, we identified some of the state's largest banks and obtained mortgage estimates from each one.

Column graph comparing 30-year mortgage rates at major Connecticut banks

The 30-year fixed-rate estimates in our one-time survey of Connecticut banks didn't vary by much, with a difference of just 25 basis points between the lowest and highest quoted rates. While these findings only represent a single point in time and a standard set of loan assumptions, they do suggest that lenders in the Nutmeg State don't get too far apart from one another in loan pricing.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

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LendingTree is our ultimate parent company

Location is another factor to consider when buying a home, but the numbers we saw don't indicate that it matters much to the interest rate on your financing. Connecticut doesn't experience a wide variety of APRs from city to city. This may be for two reasons: Connecticut is a relatively small state, and the modern market for home financing follows nationwide trends rather than local patterns.

AreaAverage mortgage rateMedian home value
Hartford-East Hartford-Middletown4.46%$266,896
Bridgeport-Stamford-Norwalk4.51%$469,349
New Haven-Milford4.48%$262,818
Norwich-New London4.44%$121,440
Average rate is for a 30-year mortgage with a 20% down payment.

Like almost every other state, Connecticut doesn't provide evidence of major regional shifts in average mortgage rate. While the value of property is definitely tied to its location, the cost of financing is largely determined by what happens in the national economy and not on local demand. Where mortgage costs differ between cities in Connecticut, the cause is most likely the higher loan amounts needed in more expensive areas.

This provides the lead-in to another interesting question: how much does mortgage amount impact your rate? Based on what we've found, the answer seems to be that average rates don't really change alongside median home value. Unless you're on one of the extreme ends of the scale for loan amount, your mortgage rate will depend more heavily on your credit score, income, and existing debt ratios.

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LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

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Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company