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)