Mortgage rates rose ever so slightly this week, with the average 30-year fixed loan moving up to 7.10 percent, according to Bankrate’s latest survey of large lenders. Rates have bounced around this year as the outlook for the Federal Reserve’s long-awaited rate cuts grows cloudier.

Current mortgage rates

Loan type Current 4 weeks ago One year ago 52-week average 52-week low
30-year 7.10% 7.12% 6.86% 7.22% 6.84%
15-year 6.47% 6.46% 6.22% 6.56% 6.13%
30-year jumbo 7.20% 7.19% 6.64% 7.15% 6.64%

The 30-year fixed mortgages in this week’s survey had an average total of 0.29 discount and origination points. Discount points are a way for you to reduce your mortgage rate, while origination points are fees a lender charges to create, review and process your loan.

Monthly mortgage payment at today’s rates

$2,191

Monthly mortgage payment as of June 12

The national median family income for 2024 is $97,800, according to the U.S. Department of Housing and Urban Development, and the median price of an existing home sold in April 2024 was $407,600, according to the National Association of Realtors (NAR). Based on a 20 percent down payment and a 7.10 percent mortgage rate, the monthly payment of $2,191 amounts to 27 percent of the typical family’s monthly income.

With mortgage rates well above pandemic lows, home sales have been sluggish. The National Association of Realtors reports that home sales in April dipped to an annual pace of just 4.1 million units.

Will mortgage rates go down?

Mortgage rates are tied to inflation, which is somewhat cooling. The U.S. Labor Department said in mid-June that the inflation rate had dipped to 3.3 percent— an improvement, but still well above the Fed’s target of 2 percent.

Meanwhile, the central bank left rates unchanged in June and reduced its number of rate cuts expected in 2024.

“The fact that the Fed scaled back the number of rate cuts from three to one is going to disappoint those who were hoping for a summer rate drop,” says Lisa Sturtevant, chief economist at Bright MLS, a large listing service in the Mid-Atlantic region. “Mortgage rates, which have remained higher for longer, will likely remain in the high 6s until later this year.”

To be clear, mortgage rates are not set directly by the Fed, but by investor appetite, particularly for 10-year Treasury bonds, the leading indicator for fixed mortgage prices. That can lead to intense rate swings — they soar on news of Fed hikes, then plummet in anticipation of a cut.

Loan applications soared 15.6 percent this week, according to the Mortgage Bankers Association, while home prices remain elevated. While Realtors are reporting upticks in inventory, many markets still don’t have enough affordably priced listings to meet demand.

  • The Bankrate.com national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison. Our rates differ from other national surveys, in particular Freddie Mac’s weekly published rates. Each week Freddie Mac surveys lenders on the rates and points based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. “Lenders surveyed each week are a mix of lender types — thrifts, credit unions, commercial banks and mortgage lending companies — is roughly proportional to the level of mortgage business that each type commands nationwide,” according to Freddie Mac.