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Mortgage interest rates trended lower across all terms from a week ago, according to data collected by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.
The multiple rate cut predictions from the start of the year may be no more, as many experts expect rates to stay higher for longer. 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 hoping for a future of more favorable rates and home prices that might not materialize.
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.12% | 7.18% | -0.06 |
| 15-year fixed | 6.62% | 6.69% | -0.07 |
| 5/1 ARM | 6.77% | 6.85% | -0.08 |
| 30-year fixed jumbo | 7.23% | 7.35% | -0.12 |
Rates last updated June 11, 2024.
The rates listed here are averages based on the assumptions shown here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, June 11th, 2024 at 7:30 a.m. ET.
Current 30 year mortgage rate declines, -0.06%
Today's average rate for the benchmark 30-year fixed mortgage is 7.12 percent, a decrease of 6 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.17 percent.
At the current average rate, you'll pay principal and interest of $673.38 for every $100,000 you borrow. That's a decline of $4.05 from last week.
There are many advantages to choosing a fixed-rate mortgage , including predictable mortgage payments.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate falls, -0.07%
The average rate for the benchmark 15-year fixed mortgage is 6.62 percent, down 7 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $878 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM rate eases, -0.08%
The average rate on a 5/1 adjustable rate mortgage is 6.77 percent, falling 8 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, 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 6.77 percent would cost about $650 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.
Current jumbo mortgage rate moves lower, -0.12%
The average rate you'll pay for a jumbo mortgage is 7.23 percent, a decrease of 12 basis points over the last week. A month ago, the average rate for jumbo mortgages was lesser at 7.22 percent.
At the average rate today for a jumbo loan, you'll pay $680.82 per month in principal and interest for every $100,000 you borrow. That's $8.15 lower, compared with last week.
Refinance rates
30-year fixed-rate refinance moves upward, +0.03%
The average 30-year fixed-refinance rate is 7.15 percent, up 3 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.22 percent.
At the current average rate, you'll pay $675.41 per month in principal and interest for every $100,000 you borrow. That's an extra $2.03 compared with last week.
Where are mortgage rates going?
The rates on 30-year mortgages mostly follow 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 economic reports of new 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 report on inflation that the Fed examines. 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 you and your mortgage
Mortgage rates fluctuate 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 prevailing market rates.
You could save serious money on interest 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
- The latest mortgage news for this week
- Compare today's mortgage rates
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.
