Published June 18, 2024 at 3:30 a.m. UTC
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The average interest rate for a 30-year fixed mortgage is 7.43%. The average interest rate for a 15-year fixed mortgage is 6.63% and the average interest rate for a jumbo mortgage is 7.38%.
*The data is current as of June 17, 2024.
30-year fixed mortgage rate
The average mortgage rate for a 30-year fixed loan rose to 7.43% from 7.33% last week, according to data from Curinos. Rates were down from 7.45% last month but up from 7.12% a year ago.
At the current 30-year fixed rate, you’d pay about $693 per month for every $100,000 you borrow, down from about $699 last week.
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15-year fixed mortgage rate
Mortgage rates on 15-year fixed loans averaged 6.63%, up from 6.53% last week. That’s down from 6.7% last month and up from 6.34% last year.
At the current 15-year fixed rate, you’d pay about $876 per month for every $100,000 you borrow, down from about $884 last week.
30-year jumbo mortgage interest rates
The average mortgage rate on a 30-year jumbo loan fell to 7.38% from 7.47% last week. Rates were down from 7.46% last month and up from 6.84% a year ago.
At the current 30-year jumbo rate, you’ll pay about $689 a month for every $100,000 you borrow, down from about $697 last week.
methodology
Curinos uses a standardized set of parameters to determine average mortgage rates. For conventional mortgages, the calculations are based on an owner-occupied one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $766,550. These calculations assume a loan-to-value ratio of 80%, a credit score of 740 or higher, and a fixed term of 60 days.
Frequently Asked Questions (FAQ)
Mortgage interest rates are determined by a variety of factors, including the overall economy, inflation, Federal Reserve actions, etc. Mortgage lenders set their loan rates based on these economic factors.
The interest rate you’re offered on a mortgage will vary depending on not only the lender but also other parts of your financial profile, such as your credit score, income, and debt-to-income ratio (DTI).
If you choose to fix your interest rate, you can usually lock it in for 30 to 60 days, depending on the lender, but in some cases you may be able to lock your interest rate for up to 120 days.
Some lenders may let you lock in your mortgage interest rate for free, but be aware that you’ll likely have to pay a fee if you want to extend the fixed period. This fee usually ranges between 0.25% and 0.5% of the loan amount. They may also charge a fee for extending the fixed period, usually 0.375% of the loan amount.
There are several strategies that can help you get the best mortgage rate, including:
- Check the credits: Apply for a mortgageLending institutions review your credit report to determine your creditworthiness and interest rates. Generally, the higher your credit score, the lower your interest rate. That’s why we recommend checking your credit report before you apply to see where you stand. If you find errors on your credit report, you can dispute them with the appropriate credit bureaus and potentially raise your credit score.
- Compare lenders: Taking the time to compare your options from as many lenders as possible will help you find the best deal. In addition to interest rates, consider each lender’s terms, fees, and qualification requirements.
- Improve your credit score: If your credit score is less than perfect and you can wait to apply for a mortgage, Improve your credibility Make sure you check up front to ensure you qualify for favorable interest rates in the future. Ways to improve your credit include paying all bills on time and keeping your credit utilization ratio (the amount of credit you’ve used compared to your credit limit) below 30% on credit cards and lines of credit.
- Reduce debt: Paying off your debt can help lower your DTI ratio, which measures your monthly debt payments relative to your income. A lower DTI ratio makes you appear less risky in the eyes of lenders, which could mean a lower interest rate.
- Choose a shorter repayment term: Lenders typically offer lower interest rates to borrowers who choose a shorter term. For example, you may get a lower interest rate on a 15-year mortgage compared to a 30-year loan.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and we recommend that you seek individual advice from a qualified professional for any specific financial decision. Past performance is not indicative of future results.
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