If you’re shopping for a home or considering refinancing, current mortgage rates are probably top of mind. And let’s be honest—they can feel like a rollercoaster. One day rates dip, the next they spike. What gives?
In this guide, we’ll break down everything you need to know about today’s mortgage rates, including:
What’s driving rate fluctuations in 2024? How today’s rates compare to historical trends Expert predictions on where rates are headed Tips to lock in the best rate for your situation
Whether you’re a first-time homebuyer or a seasoned investor, understanding current mortgage interest rates can save you thousands. Let’s dive in.
H2: What Are Today’s Mortgage Rates? (June 2024 Update)
As of June 2024, here’s where average mortgage rates stand:
| Loan Type | Current Rate (APR) |
|---|---|
| 30-Year Fixed | 6.75% – 7.25% |
| 15-Year Fixed | 6.00% – 6.50% |
| 5/1 ARM | 5.75% – 6.25% |
| FHA Loan | 6.25% – 6.75% |
| VA Loan | 5.75% – 6.25% |
(Source: Freddie Mac, Bankrate, and lender surveys)
Why the range? Your exact rate depends on credit score, loan term, down payment, and lender competition.
H3: How Do Current Rates Compare to Last Year?
Mortgage rates have been volatile over the past year:
- June 2023: 30-year fixed averaged 6.50%
- October 2023: Peaked near 8.00% (highest in 23 years)
- January 2024: Dropped to 6.60% on Fed rate cut hopes
- June 2024: Hovering around 7.00%
Key takeaway: Rates are lower than late 2023’s highs but still much higher than the sub-3% pandemic deals.
H2: What’s Influencing Mortgage Rates Right Now?
Mortgage rates don’t move in a vacuum. Here are the biggest factors shaping today’s market:
H3: 1. The Federal Reserve’s Policy
- The Fed doesn’t set mortgage rates directly, but its federal funds rate impacts them.
- In 2024, the Fed has paused rate hikes but hasn’t cut yet—keeping pressure on borrowing costs.
H3: 2. Inflation Trends
- Inflation cooled to 3.4% (May 2024), down from 9% in 2022.
- If inflation keeps dropping, mortgage rates could follow.
H3: 3. The 10-Year Treasury Yield
- Mortgage rates shadow the 10-year Treasury yield.
- When investors fear inflation, yields rise—and so do mortgage rates.
H3: 4. Housing Market Demand
- Low inventory keeps home prices high, which can push rates up slightly.
- Refinancing demand is down 40% from 2021 due to higher rates.
H2: Will Mortgage Rates Go Down in 2024? Expert Predictions
Nobody has a crystal ball, but here’s what leading economists forecast:
Fannie Mae: Predicts 30-year rates will average 6.50% by Q4 2024.
Goldman Sachs: Expects rates to drop to 6.00% if the Fed cuts rates twice this year.
Mortgage Bankers Association (MBA): Warns rates could stay above 6.5% until 2025.
Bottom line: Most experts agree rates won’t crash to 3% again soon, but gradual declines are possible.
H2: How to Get the Best Mortgage Rate in Today’s Market
Since rates are still high, every 0.25% drop matters. Here’s how to secure the lowest rate possible:
H3: 1. Boost Your Credit Score
- 760+ FICO? You’ll get the best rates.
- Below 680? Work on paying down debt and fixing errors.
H3: 2. Save for a Larger Down Payment
- Putting 20% down avoids PMI and can lower your rate.
H3: 3. Compare Multiple Lenders
- Rates vary wildly between banks, credit unions, and online lenders.
- Get at least 3-5 quotes before committing.
H3: 4. Consider Buying Points
- Paying 1% upfront (1 point) could lower your rate by 0.25%.
H3: 5. Lock Your Rate at the Right Time
- If you see a dip, lock it in (rates can change daily).
H2: Should You Wait for Rates to Drop?
This is the million-dollar question. Here’s the reality:
If you find a home you love and can afford the payment, buying now makes sense.
If you’re stretching your budget, waiting for a 0.5%-1% drop could save you hundreds monthly.
Pro tip: Use a mortgage calculator to compare payments at different rates.
H2: Final Thoughts on Current Mortgage Rates
While today’s rates are higher than the historic lows of 2021, they’re still below the 40-year average (7.75%).
Your best move?
- Monitor weekly rate trends (Freddie Mac updates every Thursday).
- Get pre-approved so you’re ready when the right home appears.
- Consult a mortgage broker to explore all loan options.
Mortgage rates won’t stay this high forever—but they won’t plunge overnight either. By staying informed and financially prepared, you can make a smart move in today’s market.
H3: Have More Questions?
Drop them in the comments! We’ll help you navigate the ever-changing mortgage rate landscape.
Want personalized rate quotes? Check out our [mortgage rate comparison tool] for real-time offers!
Read Also: Interest Rates in 2024: What You Need to Know (And How They Impact You)