The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Average 30-year mortgage rates remain below 6%, according to Zillow data, and they could drop further throughout the remainder of 2024.
Mortgage rates dropped dramatically last month in response to cooling economic data and expectations that the Federal Reserve will start lowering the federal funds rate soon.
Markets are pricing in a 100% likelihood that the Fed will start cutting rates in September. But it's unclear whether central bankers will opt for a standard quarter-point cut or a more aggressive half-point decrease.
As the Fed lowers its benchmark rate this year, mortgage rates should go down further. This means that those who are planning to buy a house later this year or in 2025 should be able to snag a lower rate than those who are currently in the market.
Current Mortgage Rates
Current Refinance Rates
Mortgage Calculator
Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
Click "More details" for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Decrease (-0.11%)
The current average 30-year fixed mortgage rate is 5.95%, down 11 basis points from where it was this time last week, according to Zillow data. This rate is down compared to a month ago, when it was 6.34%.
At 5.95%, you'll pay $596 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.
20-Year Fixed Mortgage Rates Drop Slightly (-0.08%)
The average 20-year fixed mortgage rate is eight basis points down from where it was last week, and is sitting at 5.73%. This time last month, the rate was 6.05%.
With a 5.73% rate on a 20-year term, your monthly payment will be $701 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Inch Down (-0.07%)
The average 15-year mortgage rate is 5.30%, seven basis points lower than last week. It's down compared to this time last month, when it was 5.66%.
With a 5.30% rate on a 15-year term, you'll pay $807 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Tick Up (+0.09)
The 7/1 adjustable mortgage rate is up nine basis points from a week ago at 6.47%. It's up slightly compared to a month ago, when it was at 6.39%.
At 6.47%, your monthly payment would be $630 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Up Slightly (+0.05%)
The average 5/1 ARM rate is 6.39%, a five-basis-point increase from last week. It's up a bit compared to where it was a month ago, when it was 6.29%.
Here's how a 6.39% rate would affect you for the first five years: You'd pay $625 a month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Stay Flat (No Change)
The average 30-year FHA interest rate is 4.96% today, unchanged from the week before. This rate was 5.55% a month ago.
At 4.96%, you would pay $534 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-Year VA Rates Dip (-0.05%)
The current VA mortgage rate is 5.26%, down five basis points from this time last week. This rate was 5.66% a month ago.
With a 5.26% rate, your monthly payment would be $553 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.17%)
The average 30-year refinance rate is 6.14%, 17 basis points down from last week. It's down compared to a month ago, when it was 7.56%.
Here's how a 6.14% rate would affect your monthly payments: You'd pay $609 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Rise (+0.31%)
The current 20-year fixed refinance rate is 6.35%, which is up 31 basis points compared to a week ago. This rate was 6.20% this time last month.
A 6.35% rate on a 20-year term will result in a $737 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Drop (-0.23%)
The average 15-year fixed refinance rate is 5.47%, which is 23 basis points lower compared to last week. It's also down compared to this time a month ago, when it was at 6.61%.
A 5.47% rate on a 15-year term means you'll pay $815 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Tick Up (+0.31%)
The average 7/1 ARM refinance rate is 6.65%, up 31 basis points from last week. It's up from a month ago, when it was 6.50%.
Refinancing into a 7/1 ARM with a 6.65% rate means your monthly payment toward principal and interest will be $642 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Inch Down (-0.05%)
The 5/1 ARM refinance rate is 6.37%, which is five basis points lower than it was this time last week. It's down compared to this time last month, when it was 6.56%.
A 6.37% rate will result in a monthly payment of $624 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Hold Steady (No Change)
The 30-year FHA refinance rate is 5.49%, exactly where they were this time last week. It was 5.31% a month ago.
A 5.49% refinance rate would lead to a $567 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Decrease (-0.27%)
The average 30-year VA refinance rate is 5.30%, which is down 27 basis points compared to where it was last week. This rate was 5.67% a month ago.
At 5.30%, your new monthly payment would be $555 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates spent the first half of this year relatively high, but they've recently dropped and may go down further throughout the rest of 2024.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Read the original article on
Business Insider 
Most Popular
Comments / 0