Current Mortgage Rates: Find Your Best Loan Option

Are you looking to buy a new home or refinance your current mortgage? It’s important to know about the current mortgage rates to find the best loan for your financial goals¹. As of July 4, 2024, the average 30-year fixed mortgage rate is 7.06%, up from last week². Your mortgage rate depends on your credit score, down payment, loan type, and the economy, including the Federal Reserve’s policies and global conditions.

Key Takeaways

Mortgage rates are influenced by your credit score, down payment, and the economy.
The 30-year fixed-rate mortgage is the most common type, with rates around 7.06%.
Comparing offers from different lenders can save you money over the loan’s life.
Adjustable-rate mortgages (ARMs) may start with lower rates but can change later.
Paying points or choosing a shorter loan can get you a lower interest rate.

Whether you’re buying your first home or refinancing, knowing about mortgage rates is key. Keep these points in mind as you look for the best loan for your situation. This will help you move closer to your dream home or a better refinancing deal.

What Are Today’s Mortgage Rates?

Understanding current mortgage rates is key when financing a home. Rates change based on the loan type, your credit score, and other factors. Let’s explore the latest rates for some common mortgage options.

30-Year Fixed-Rate Mortgage

The 30-year fixed-rate mortgage is a top choice for many buyers. It has a steady interest rate and monthly payments for the loan’s life. Today, the average APR for this mortgage is 7.53%³.

15-Year Fixed-Rate Mortgage

For those wanting a shorter loan, the 15-year fixed-rate mortgage is a good option. Its average APR is currently 6.83%³.

30-Year Fixed-Rate Jumbo Mortgage

Jumbo loans are for amounts over the limits set by Fannie Mae and Freddie Mac. They usually have higher Interest Rates. The average APR for a 30-year fixed-rate jumbo mortgage is 7.44% as of today³.

Mortgage rates change every day. The rate you get will depend on your credit score, down payment, and the property’s location. Knowing the market and your options helps you make a smart choice and get the best rate for you⁴⁵³.

Mortgage Rate Trends

Understanding the latest Mortgage Rate Trends is key for both homebuyers and homeowners. The average 30-year fixed mortgage interest rate is now at 7.06%, up 6 basis points from last week. The 30-year fixed refinance rate is also up, at 7.08%, and the 15-year fixed refinance rate has risen to 6.55%⁶.

Experts believe mortgage rates will drop in 2024, but when and how much is still up in the air⁶. In 2023, the 30-year fixed rate swung from 6.09% to 7.79%⁷. Some predict a 7% average rate for the third quarter of 2024⁷. Others, like the Mortgage Bankers Association, expect a 6.7% average, while Fannie Mae sees a 7.1% rate⁷.

Even with recent hikes, current mortgage rates are still below the norm. Since April 1971, the average 30-year rate has been about 7.8%⁷. The highest rate was in 1981, at 16.63%⁶. The COVID-19 pandemic led to record-low rates in 2020 and 2021, with a 2.65% average in January 2021⁶.

Rate cuts from the Federal Reserve could lead to lower mortgage rates, despite inflation challenges⁷. Lenders like Rocket Mortgage, Better, and Prosperity Home Mortgage offer various mortgage products. These include jumbo loans, VA loans, conforming loans, FHA loans, and USDA loans, suited for different financial situations and goals⁸.

As the mortgage market changes, keeping up with Mortgage Rate Trends is crucial. It helps you make better decisions about your home financing. Whether you’re buying your first home or refinancing, knowing the current and future mortgage rates is key to your homeownership journey.

Mortgage Rates

Understanding the difference between interest rate and APR is key when looking at mortgages. The interest rate is what lenders charge for the money you borrow. The APR includes the interest and other fees, making it a better measure of the loan’s total cost. You can also pay discount points upfront to lower the interest rate⁹.

Interest Rate vs. APR

Bankrate shows two types of rate averages: daily “overnight averages” and weekly “Bankrate Monitor averages.” The overnight averages don’t consider your relationship with the lender or automatic payments. The Bankrate Monitor averages come from the 10 biggest banks in major U.S. markets, also without relationship or payment discounts¹⁰.

How Bankrate Calculates Mortgage Rates

The top offers on Bankrate are the weekly average interest rates from the best deals in their table, currently at 6.29%¹¹. The national average is higher at 6.99%⁹. For the week of June 28th, the top offers were X% lower than the national average interest rate⁹. A recent survey by Bankrate found the typical rate for a 30-year fixed mortgage was 7.09%⁹.

As of Thursday, July 04, 2024, the average 30-year fixed mortgage interest rate is 7.06%, up 6 basis points from last week¹¹. The average for a 30-year fixed refinance is 7.08%, also up 6 basis points¹¹. The national average for a 15-year fixed refinance is 6.55%, up 7 basis points from last week¹¹.

Things like Federal Reserve policy, lender practices, and your credit can affect mortgage rates¹⁰. Shopping around can save you up to $1,200 a year on mortgage rates⁹.

Loan Type	Interest Rate	APR	Monthly Payment (per $100,000)
30-Year Fixed	7.51%	7.53%	$701
15-Year Fixed	6.80%	6.83%	$889
30-Year Fixed Jumbo	7.42%	7.44%	$695

Changes in interest rates can greatly affect your monthly payments. For example, a 30-year fixed-rate mortgage with a balance of $425,000 can go from $2,281 monthly at 5% interest to $3,119 at 8%¹⁰.

It’s a good idea to shop around to find the best rates. Use online tools and apply to several lenders for accurate quotes¹⁰.

How to Get the Best Mortgage Rate

Finding the best mortgage rate can seem tough, but it’s doable with the right steps. Start by picking the mortgage type that fits your financial plans and needs. Think about your credit score¹², down payment¹³, and what you can afford each month. This will help you choose between a fixed-rate or adjustable-rate loan¹².

Compare Mortgage Rates

After picking your mortgage type, it’s time to look at different lenders. Check out offers from big banks, credit unions, and online lenders to find the best rate. Use tools like Bankrate’s mortgage rate comparison to help you¹².

Choose the Best Mortgage Offer

When looking at mortgage offers, pay attention to the Annual Percentage Rate (APR), not just the interest rate. The APR shows the loan’s total cost, including interest and fees. This gives you a clear picture of the loan’s true cost¹⁴.

Bankrate’s mortgage calculator can show you your monthly payments and help pick the best offer for you¹⁴. Also, think about the lender’s reputation, customer service, and any discounts or state programs that could lower your costs¹⁴.

FAQ

What are the current mortgage rates?

Right now, the average 30-year fixed mortgage rate is 7.06%. The 15-year fixed mortgage rate is 6.83%. And the 30-year fixed jumbo mortgage rate is 7.44%.

How do interest rates and APR differ?

Interest rates are what lenders charge for the loan. APR, or annual percentage rate, includes the interest and other fees. APR shows the true cost of the loan.

How does Bankrate calculate mortgage rates?

Bankrate gives two types of rate averages. The “overnight averages” and the “Bankrate Monitor averages”. Overnight averages don’t consider your relationship with the lender or automatic payments. Bankrate Monitor averages come from the 10 largest U.S. banks, also without relationship or payment discounts.

How can I get the best mortgage rate?

For the best mortgage rate, look at your credit score, down payment, and how long you’ll stay in the home. Also, think about your monthly budget and how much risk you can handle. Compare rates from big banks, credit unions, and online lenders. Always check the APR, not just the interest rate, to find the best deal.