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Rates remain elevated - Mortgage rates for June 5, 2024

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Mortgage interest rates were mixed compared to last week, according to rate data compiled by Bankrate. Read on for a breakdown of how each loan type moved.

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.

Loan type Today's rate Last week's rate Change
30-year fixed 7.10% 7.13% -0.03
15-year fixed 6.64% 6.64% N/C
5/1 ARM 6.82% 6.56% +0.26
30-year fixed jumbo 7.21% 7.22% -0.01

Rates as of June 5, 2024.

The rates listed here are Bankrate's overnight average rates and are 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 Wednesday, June 5th, 2024 at 7:30 a.m. ET.

30-year mortgage dips, -0.03%

The average rate you'll pay for a 30-year fixed mortgage today is 7.10 percent, down 3 basis points since the same time last week. Last month on the 5th, the average rate on a 30-year fixed mortgage was higher, at 7.19 percent.

At the current average rate, you'll pay a combined $672.03 per month in principal and interest for every $100,000 you borrow. That's lower by $2.03 than it would have been last week.

The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
  • Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Read more: What is a fixed-rate mortgage and how does it work?

15-year fixed mortgage rate stays put

The average rate you'll pay for a 15-year fixed mortgage is 6.64 percent, unchanged over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $879 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment, 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 climbs, +0.26%

The average rate on a 5/1 adjustable rate mortgage is 6.82 percent, up 26 basis points from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be materially 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 6.82 percent would cost about $653 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 rate falls, -0.01%

The average jumbo mortgage rate today is 7.21 percent, down 1 basis point over the last seven days. This time a month ago, jumbo mortgages' average rate was above that at 7.27 percent.

At today's average jumbo rate, you'll pay principal and interest of $679.47 for every $100,000 you borrow. Compared with last week, that's $0.67 lower.

Mortgage refinance rates

30-year mortgage refinance rate drops, -0.05%

The average 30-year fixed-refinance rate is 7.10 percent, down 5 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.20 percent.

At the current average rate, you'll pay $672.03 per month in principal and interest for every $100,000 you borrow. That represents a decline of $3.38 over what it would have been last week.

Where are mortgage rates heading?

The rates on 30-year mortgages mostly mirror 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 evolving economic 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 report on 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 today's rates mean for you and 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.

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

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.