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Mortgage rates were mostly lower compared to a week ago, according to data collected by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans each decreased, while rates for adjustable rate mortgages rose.
The tune has changed around the direction of mortgage rates. The movement of fixed mortgage rates parallels the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy, inflation and Federal Reserve decisions. At the close of the latest Fed meeting on May 1, policymakers held firm and opted not to cut rates. The next announcement from the Fed comes June 12.
“Markets are assuming that the Fed will cut the overnight rate only one time during the rest of 2024,” says Dick Lepre of RealFinity. “Rates will be flat for the rest of 2024.”
Often, though, the decision to buy a home isn’t based on market shifts. It comes down to what you need. Depending on your situation, it might make sense to take a higher rate now and refinance later. This way you can start building equity, rather than waiting for a time when rates and prices are more favorable.
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.06% | 7.17% | -0.11 |
| 15-year fixed | 6.56% | 6.62% | -0.06 |
| 5/1 ARM | 6.62% | 6.34% | +0.28 |
| 30-year fixed jumbo | 7.16% | 7.22% | -0.06 |
Rates last updated June 6, 2024.
The rates listed here are Bankrate's overnight average rates and are based on the assumptions here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, June 6th, 2024 at 7:30 a.m. ET.
Current 30 year mortgage rate declines, -0.11%
The average rate for a 30-year fixed mortgage for today is 7.06 percent, a decrease of 11 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.14 percent.
At the current average rate, you'll pay $669.34 per month in principal and interest for every $100,000 you borrow. That's a decline of $7.42 from last week.
15-year fixed mortgage rate moves down, -0.06%
The average rate you'll pay for a 15-year fixed mortgage is 6.56 percent, down 6 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $874 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate moves higher, +0.28%
The average rate on a 5/1 ARM is 6.62 percent, up 28 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.62 percent would cost about $640 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.
Jumbo mortgage slides, -0.06%
The average jumbo mortgage rate is 7.16 percent, down 6 basis points over the last seven days. This time a month ago, the average rate for jumbo mortgages was higher at 7.25 percent.
At today's average rate, you'll pay a combined $676.08 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $4.06 lower.
Refinance rates
Today's 30-year mortgage refinance rate moves down, -0.10%
The average 30-year fixed-refinance rate is 7.08 percent, down 10 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.12 percent.
At the current average rate, you'll pay $670.68 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $6.75 lower.
Where are mortgage rates going?
The rates on 30-year mortgages mostly mirror the 10-year Treasury yield, which changes with the market, while the cost of variable-rate home loans more directly mirrors the Fed’s moves.
If and when the Fed cuts interest rates depends on evolving economic data, such as the inflation rate and the jobs market. While inflation has fallen since its peak in 2022, it’s still above the Fed’s target rate of 2 percent, and that doesn’t appear to be changing for now. When it evaluates inflation, the central bank prefers the Personal Consumption Expenditures (PCE) index. The newest PCE report is due out May 31.
“Tepid demand at Treasury auctions and an update to the Fed’s preferred inflation measure on May 31 pose the risk of rates moving up in coming days,” says Greg McBride, Bankrate’s chief financial analyst.
The Consumer Price index (CPI) is another measure of inflation that the Fed closely watches. The next CPI report comes out June 12 — the same day as the next Fed announcement.
While the Fed bases its decisions on rate changes due to broader economic factors, your rate is also affected by personal finances. Depending on your credit score, down payment, debts and income, you could be quoted a rate that's higher or lower than the trend.
What today's rates mean for your mortgage
Mortgage rates change daily, but it appears that, for now, they will remain above the historical lows of recent years. If you’re shopping for a mortgage, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at current market rates.
Keep in mind: You could save thousands over the life of your mortgage by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
"All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, senior economic analyst for Bankrate. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
- Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare mortgage rates for today
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
