Published June 6, 2024 at 3:30 a.m. UTC
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Mortgage rates across the board are trending pretty much the same. Here are the current average mortgage rates:
- 30-year fixed rate: 7.42%
- 15-year fixed rate: 6.61%
- 30-year Jumbo: 7.41%
*The data is current as of June 5, 2024.
30-year fixed mortgage rate
According to data from Curinos, today’s 30-year fixed mortgage rate is 7.42%, roughly the same as last week’s 7.42%. This is down from last month’s 7.55%. At this time last year, the 30-year fixed rate was 7.21%, so today’s rates are higher than a year ago.
At the current 30-year fixed rate, you’d pay about $692 per month for every $100,000 you borrow, about the same as last week.
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15-year fixed mortgage rate
Today’s 15-year fixed mortgage rate is 6.61%, roughly the same as last week’s 6.61%. This is down from last month’s 6.73%. At this time last year, the 15-year fixed rate was 6.37%, so today’s rates are higher than a year ago.
At the current 15-year fixed rate, you’ll pay about $875 a month for every $100,000 you borrow, down from about $892 last week.
30-year jumbo mortgage interest rates
Today’s 30-year jumbo mortgage interest rate is 7.41%, lower than last week’s 7.46%, which is lower than last month’s 7.46%. At this same time last year, the 30-year jumbo mortgage interest rate was 6.84%, so today’s interest rate is about one percentage point higher than a year ago.
At the current 30-year jumbo rate, you’ll pay about $691 a month for every $100,000 you borrow, down from about $703 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)
On May 3, 2023, the Federal Reserve Announced third interest rate hike That’s a 25-basis-point increase this year.The Fed doesn’t set mortgage rates, but a rise in the federal funds rate could prompt individual lenders to raise mortgage rates as well.
If you already have a mortgage, how this affects your monthly payments will depend on whether your loan has a fixed or variable interest rate. A fixed rate stays the same for the life of your loan, so your payments won’t change. A variable rate, on the other hand, fluctuates with market conditions, which could mean your monthly payments go up.
For example, if you borrow $250,000 for an ARM with a 5.5% interest rate, your initial monthly payment would be $1,719. But after the initial period ends and the ARM converts to an adjustable rate, your payments could increase if interest rates rise. For example, if interest rates rise by just 25 basis points (5.75%), your payments would increase to $1,750.
If you don’t plan on holding onto your home for a long time, an ARM may be a better option, especially if interest rates on fixed-rate loans were significantly higher at the time. This is because while ARMs tend to have lower interest rates initially than fixed-rate mortgages, interest rates may increase over time.
While fixed-rate loans have the same interest rate for their entire term, ARMs start out with a fixed rate for a period of time and then switch to a variable rate that can change for the remainder of the loan term. For example, a 5/1 ARM has a fixed rate for five years (the “5” in 5/1) and then switches to a variable rate that can change once a year (the “1” in 5/1).
Whether lowering your mortgage rate is the right choice for you depends on your personal situation and financial goals. If you plan to stay in your home for a long time and can afford the lowering costs, a lower rate may make sense. But if you plan to move or refinance your mortgage before the lowering costs and lower monthly payments are offset, a lower rate may not be worth it.
Interest rate reductions can be permanent or temporary and will affect your overall cost. Permanent reductions are also known as buying mortgage discount points, and typically reduce your interest rate by 0.25% by paying 1% of your loan amount per point.
On the other hand, a temporary buydown reduces your interest rate to a certain amount, then increases each year before eventually returning to your original rate. Common temporary options include 2-1 and 1-0 terms, where the first number is the amount your interest rate will be reduced by in the first year and the second number is the amount it will be reduced by the following year. Unlike discount points, which are paid by the buyer, this type of buydown can be paid by the lender, seller, or homebuilder.
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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