Current mortgage rates in Missouri

As of Monday, December 4, 2023, current mortgage interest rates in Missouri are 7.65% for a 30-year fixed mortgage and 6.76% for a 15-year fixed mortgage.

Elevated mortgage rates continue to make housing affordability a challenge for Missouri homebuyers, and refinances far less desirable for homeowners. While mortgage rates are difficult to predict, many economists expect them to remain well above their historical lows for the foreseeable future.

Refinance rates in Missouri

Missouri borrowers who saw their home equity rise during the pandemic might still be interested in refinancing as a way to tap those funds. Check out Bankrate’s guide to cash-out refinancing to learn more.

Missouri mortgage rate trends

Mortgage rates hit record lows in 2021, but they have risen sharply since then. As of October 2023, mortgage rates nationally and in Missouri were at their highest levels since 2000, according to Bankrate’s national survey of lenders.

National mortgage rates by loan type

Mortgage statistics for Missouri

Here are some statistics about mortgages and the housing market in Missouri:

• Average home value (as of Oct. 2023): $239,406 (Zillow)
• Homeownership rate (as of Dec. 2022): 70.6% (U.S. Census Bureau)
• Average mortgage loan size in 2022: $251,340 (Home Mortgage Disclosure Act)

Mortgage options in Missouri

If you’re looking to get a mortgage in Missouri, there are several options:

• Missouri conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Missouri FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Missouri VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.

First-time homebuyer programs in Missouri

If you’re a homebuyer in Missouri, you might be eligible for one or more special mortgage programs through the Missouri Housing Development Commission (MHDC), including:

• First Place Loan Program: The Missouri First Place Loan Program, administered by the MHDC, is designed to help first-time homebuyers (or those who have not owned a home in the preceding three years) purchase a home. Through the program, borrowers are eligible for cash assistance for the down payment and closing costs (equivalent to 4 percent of the first mortgage amount) and additional cash assistance in the form of a second mortgage, which will be forgiven if the borrower stays in the home for at least 10 years. There are income limits based on the number of residents in the household and where the borrower intends to buy a home. For instance, a one- to two-person household in the St. Louis area can’t have an income exceeding $94,900. There are also statewide purchase price limits that vary based on the number of units and whether the home is located in a non-targeted or targeted area.
• Missouri mortgage credit certificate: The Missouri mortgage credit certificate (MCC) program converts a portion of the borrower’s mortgage interest paid into a non-refundable federal tax credit. The MCC program is available to low- to moderate-income first-time homebuyers who work with an MHDC-certified mortgage lender to receive the certificate. The program is structured to help first-time borrowers qualify for their first home loan by reducing the taxes they would otherwise have to pay. The maximum tax credit in a year is $2,000; minimum credit scores, household income limits and home purchase price limits apply.

Additional Missouri mortgage resources

• Missouri first-time homebuyer resources: Get more help becoming a homeowner.
• Missouri loan limits by county: Learn the conforming loan limit for your city or town.
• Missouri mortgage lenders: Explore mortgage lenders in your state.

How to find the best mortgage rate in Missouri for you

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more about how to get a mortgage.