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National mortgage rates were mostly lower compared to a week ago, according to rates data compiled by Bankrate. Average rates for 30-year fixed, 5/1 ARMs and jumbo loans declined, while rates for 15-year home loans increased.
Inflation has cooled somewhat, but homebuyers are still feeling limited by high prices and rates. At the close of the Fed meeting on June 12, policymakers again held off on changing interest rates. The next Fed meeting concludes July 31.
“With [the June 12] announcement, the Fed confirms its higher-for-longer position on interest rates,” says Dr. Selma Hepp, chief economist at CoreLogic. “But the stance is looking more untenable as more American households continue to pull back on spending. As more economic indicators begin to confirm this and unemployment begins to rise, the Fed will then look to cut rates. What’s not clear yet is when exactly the disinflation signs will be consistent enough for the first rate cut — we hope it's still this year.”
Often, though, the decision to buy a home isn’t based on what’s happening in the economy — it’s more personal. 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 chancing that buying a home will become more affordable in the future..
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.00% | 7.02% | -0.02 |
| 15-year fixed | 6.46% | 6.43% | +0.03 |
| 5/1 ARM | 6.66% | 6.69% | -0.03 |
| 30-year fixed jumbo | 7.16% | 7.17% | -0.01 |
Rates as of June 25, 2024.
The rates listed above are Bankrate's overnight average rates and are based on the assumptions here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, June 25th, 2024 at 7:30 a.m. ET.
Current 30 year mortgage rate drops, -0.02%
The average rate for a 30-year fixed mortgage for today is 7.00 percent, down 2 basis points over the last seven days. Last month on the 25th, the average rate on a 30-year fixed mortgage was higher, at 7.13 percent.
At the current average rate, you'll pay principal and interest of $665.30 for every $100,000 you borrow. That's lower by $1.35 than it would have been last week.
Use our mortgage calculator to approximate your monthly payments and see how much you’ll save by adding extra payments. The tool will also help you calculate how much interest you’ll pay over the life of your loan.
15-year mortgage rate trends upward, +0.03%
The average rate for the benchmark 15-year fixed mortgage is 6.46 percent, up 3 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $869 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, 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 rapidly.
5/1 adjustable rate mortgage declines, -0.03%
The average rate on a 5/1 ARM is 6.66 percent, ticking down 3 basis points from a week ago.
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 those who expect to sell or refinance 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 6.66 percent would cost about $643 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.
Jumbo mortgage interest rate falls, -0.01%
The current average rate you'll pay for jumbo mortgages is 7.16 percent, down 1 basis point over the last week. A month ago, the average rate was higher at 7.22 percent.
At the current 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 $0.68 lower.
Refinance rates
30-year mortgage refinance goes unchanged
The average 30-year fixed-refinance rate is 6.96 percent, unchanged since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.15 percent.
At the current average rate, you'll pay $662.62 per month in principal and interest for every $100,000 you borrow.
Where are mortgage rates heading?
The rates on 30-year mortgages mostly align with 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 inflation and the jobs market. While inflation has dropped from its height in 2022, it’s still well above the Fed’s target rate of 2 percent. Unemployment is still low, though in May it hit 4 percent for the first time since 2022.
“Much like that flight where departure keeps getting delayed 15 minutes at a time with no end in sight, the timetable for when the Fed begins to cut rates is equally uncertain,” says Greg McBride, CFA, Bankrate chief financial analyst.
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 current rates mean for you and your mortgage
Mortgage rates adjust 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.
To help you uncover the best deal, get 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
- Expert poll: Mortgage rate trend predictions for this week
- 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.
