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Majority of rates decrease - Today's mortgage rates, June 10, 2024

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Mortgage interest rates were mostly down compared to a week ago, according to rate data compiled by Bankrate. Average rates for 30-year fixed, 15-year fixed and jumbo loans receded, while rates for ARM loans rose.

The tune has changed around the direction of mortgage rates. 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 chancing that buying a home will become more affordable.

Mortgage type Today's rate Last week's rate Change
30-year fixed 7.05% 7.17% -0.12
15-year fixed 6.57% 6.66% -0.09
5/1 ARM 6.73% 6.68% +0.05
30-year fixed jumbo 7.16% 7.27% -0.11

Rates accurate as of June 10, 2024.

These rates are marketplace averages based on the assumptions here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, June 10th, 2024 at 7:30 a.m. ET.

30-year fixed-rate mortgage dips, -0.12%

Today's average rate for the benchmark 30-year fixed mortgage is 7.05 percent, a decrease of 12 basis points over the last seven days. Last month on the 10th, the average rate on a 30-year fixed mortgage was higher, at 7.21 percent.

At the current average rate, you'll pay a combined $668.66 per month in principal and interest for every $100,000 you borrow. That's $8.10 lower, compared with last week.

Use our mortgage calculator to estimate 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 fork up over the life of the loan.

15-year fixed mortgage rate falls, -0.09%

The average 15-year fixed-mortgage rate is 6.57 percent, down 9 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $875 per $100,000 borrowed. That's obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM rate goes up, +0.05%

The average rate on a 5/1 ARM is 6.73 percent, ticking up 5 basis points over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, 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 6.73 percent would cost about $647 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.

Jumbo mortgage slides, -0.11%

The current average rate you'll pay for jumbo mortgages is 7.16 percent, a decrease of 11 basis points over the last seven days. Last month on the 10th, the average rate for jumbo mortgages was higher at 7.35 percent.

At the average rate today for a jumbo loan, you'll pay a combined $676.08 per month in principal and interest for every $100,000 you borrow. That's a decline of $7.45 from last week.

Mortgage refinance rates

30-year fixed-rate refinance trends down, -0.09%

The average 30-year fixed-refinance rate is 7.08 percent, down 9 basis points from a week ago. 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 $670.68 per month in principal and interest for every $100,000 you borrow. That's $6.08 lower, compared with last week.

Where are mortgage rates going?

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 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 indicator of 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 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.

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

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.