Connecticut Mortgage and Refinance Rates

Current mortgage rates in Connecticut

As of Tuesday, December 10, 2024, current interest rates in Connecticut are 6.88% for a 30-year fixed mortgage and 6.25% for a 15-year fixed mortgage.

Residential real estate is expensive in The Constitution State: The average home sales price was $406,715 as of November 2024, representing a 6.7 percent increase year-over-year, according to Zillow. Higher home prices have made it hard for some Connecticut residents to afford a home.

Refinance rates in Connecticut 

While mortgage refinance rates have come down some since their peak near 8 percent in October 2023, they're still hovering around 7 percent as we approach the end of 2024. For many who locked in lower mortgage rates around the pandemic, it does not likely make sense to refinance now.

However, many Connecticut homeowners have more tappable equity now. In fact, the percentage of equity-rich homes in the state is over 47 percent as of the fourth quarter of 2024, according to ATTOM data. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Connecticut mortgage rate trends

Mortgage rates in Connecticut have trended upward over much of the last two years, mirroring national trends, and are now settling around the 6 to 7 percent range. Despite the Federal Reserve cutting rates a full percentage point since September 2024, mortgage rates have not decreased dramatically. While mortgage rates are difficult to predict, the current consensus is for them to remain well above historical lows for the foreseeable future, including in Connecticut.

National mortgage rates by loan type

Mortgage statistics for Connecticut

• Most affordable counties (based on median home value): Windham, Tolland, New Haven
• Median home sales price, Sept. 2024: $415,000
• Median home value, Oct. 2024: $409,000
• Median down payment, Sept. 2024: $75,800
• Homeownership rate, Q3 2024: 66.6%

Sources: ATTOM, U.S. Census Bureau

Mortgage options in Connecticut

There’s a variety of mortgage options available to homebuyers in Connecticut, including:

• Connecticut conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of 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.
• Connecticut 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 an FHA loan with a credit score as low as 580.
• Connecticut 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 3.3 percent.

First-time homebuyer programs in Connecticut

The Connecticut Housing Finance Authority (CHFA) offers several programs designed to assist first-time homebuyers in making a purchase more affordable. Here’s a rundown:

• HFA Advantage and HFA Preferred loans: HFA Advantage and HFA Preferred loans offer down payment assistance, no upfront mortgage insurance and low monthly mortgage insurance payments through housing finance agencies, including the CHFA.
• Conventional Area Median Income Loan Program: The Conventional Area Median Income Loan Program (CALP) is aimed at first-time buyers who do not qualify for an HFA Advantage or HFA Preferred loan because their income is greater than 80 percent of the area median income (AMI).
• Down Payment Assistance Program Loan: The CHFA offers a Down Payment Assistance Program (DAP) loan up to $15,000.

The CHFA also has specialized homebuying programs for certain types of borrowers, including members of the military and the police, teachers, people with a disability and public housing residents.

How to find the best mortgage rate in Connecticut 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.

Additional Connecticut mortgage resources

• How to buy a house in Connecticut: Learn the ins and outs of Connecticut's real estate scene.
• Connecticut loan limits by county: Learn the conforming loan limit for a city or town.
• Connecticut mortgage lenders: Explore the offerings of financial institutions available in the state.
• Closing costs in Connecticut: A guide to who pays what, and how much.
• Best homeowners insurance in Connecticut: Compare policies from a variety of providers.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Richards, Editor, Home Lending

I previously worked as a copy editor in the higher education space, including at BestColleges and Affordable Colleges Online. Prior to that, I worked in marketing and public relations at Binghamton University while earning her master's degree. I also regularly write a blog, Better By The Beat, to educate and empower the chronic illness community.

Read more from Laurie Richards