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Rates rise | Current mortgage rates, June 4th, 2024

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Average mortgage rates rose for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans rose.

At the beginning of the year, many experts predicted multiple rate cuts in 2024, but that's now changed. 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 hoping for a future of more favorable rates and home prices that might not materialize.

Loan type Today's rate Last week's rate Change
30-year fixed 7.18% 7.11% +0.07
15-year fixed 6.69% 6.61% +0.08
5/1 ARM 6.85% 6.81% +0.04
30-year fixed jumbo 7.35% 7.26% +0.09

Rates last updated June 4, 2024.

These rates are averages based on the assumptions indicated here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, June 4th, 2024 at 7:30 a.m. ET.

30-year mortgage advances, +0.07%

Today's average rate for the benchmark 30-year fixed mortgage is 7.18 percent, an increase of 7 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.25 percent.

At the current average rate, you'll pay $677.43 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $4.72 higher.

While the 30-year rate is the most popular mortgage term, the 30-year mortgage also has some downsides:

  • More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would with a shorter-term loan.
  • Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
  • Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
  • Buying a pricier house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.
  • Learn more: What is a fixed-rate mortgage and how does it work?

    15-year mortgage rate rises, +0.08%

    The average 15-year fixed-mortgage rate is 6.69 percent, up 8 basis points over the last week.

    Monthly payments on a 15-year fixed mortgage at that rate will cost $882 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

    5/1 ARM goes up, +0.04%

    The average rate on a 5/1 ARM is 6.85 percent, up 4 basis points over the last 7 days.

    Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to refinance or sell before the first or second adjustment. Rates could be considerably 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 6.85 percent would cost about $655 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 rate trends upward, +0.09%

    The average jumbo mortgage rate today is 7.35 percent, an increase of 9 basis points over the last week. A month ago, jumbo mortgages' average rate was lesser at 7.29 percent.

    At the current average rate, you'll pay a combined $688.97 per month in principal and interest for every $100,000 you borrow. That's $6.12 higher compared with last week.

    Refinance rates

    30-year mortgage refinance rate moves upward, +0.01%

    The average 30-year fixed-refinance rate is 7.12 percent, up 1 basis point over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.26 percent.

    At the current average rate, you'll pay $673.38 per month in principal and interest for every $100,000 you borrow. That's an increase of $0.67 over what you would have paid last week.

    Where are mortgage rates heading?

    The rates on 30-year mortgages mostly reflect 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 measure of inflation that the Fed keeps an eye on. 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 current 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 current market rates.

    Keep in mind: You could save thousands over the life of your mortgage by getting 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


    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.