Mortgage rates drifted higher this week, and could increase further, in a sign that America’s affordability crisis isn’t letting up.
The 30-year fixed-rate mortgage averaged 6.88% in the week ending April 11, up from 6.82% the previous week, according to Freddie Mac data released Thursday. A year ago, the average 30-year fixed-rate was 6.27%.
Rates have mostly held steady in the past several weeks, but they could rise even higher, potentially crossing the uncomfortable psychological threshold of 7%, if inflation proves to be more stubborn than expected.
The Federal Reserve doesn’t directly set mortgage rates, but its actions do influence them, and hotter-than-expected inflation readings could keep the central bank from reducing interest rates.
“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” said Sam Khater, Freddie Mac’s chief economist, in a release. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture.”
Mortgage rates track the benchmark yield on the 10-year US Treasury note, which moves in anticipation of the Fed’s decisions. The yield topped 4.5% Wednesday, the highest level since November, after the latest Consumer Price Index showed persistent price pressures in March. That doesn’t bode well for lower mortgage rates, and economists don’t expect rates to fall below 6% this year, especially if the Fed does not end up cutting interest rates.
But, for now, officials are still expecting to cut rates at some point this year, though that may happen later than previously expected. That could help alleviate some pressure in the country’s tough housing market.
Inventory gains could improve affordability
Mortgage rates are not expected to drop meaningfully this year, but further improvement in housing inventory could improve affordability. The National Association of Realtors said that more homes came to market in February, which helped drive up sales that month.
Homeowners who locked in a low mortgage rate before the Fed began to lift rates in 2022 have largely preferred not to sell in recent years, contributing to historically low inventory. That may be starting to change.
Total housing inventory rose 5.9% in February from January, to 1.07 million units. Inventory was up 10.3% in February from a year earlier, giving buyers more choices and helping ease some upward pressure on prices.
A lack of homes has been a longstanding issue keeping America’s housing market unaffordable and is especially frustrating for first-time buyers. President Joe Biden has laid out proposals to fix the housing market, such as tax credits and homebuilding initiatives but, even if they receive congressional approval, it’s unclear whether that will be enough.
Despite recent improvements, and even if the Fed does cut rates, as it has indicated, the main issue continues to be that supply simply is not keeping up with demand, keeping a home purchase out of reach for the vast majority of Americans.
Data experts on the mortgage team at NerdWallet dig into NerdWallet’s survey research, as well as public datasets, to identify trends and provide insights on the ever-changing U.S. housing market. On this page, you’ll find some of NerdWallet’s most-read research and commentaries on home buyers and sellers, mortgage interest rates and homeownership.
For NerdWallet statistics and data on additional topics, including credit cards, banking and student loans, head to our studies and data analysis hub.
Have questions or want to speak with a NerdWallet expert? Reach out to [email protected].
Mortgage interest rates
Daily mortgage interest rates
Mortgage interest rates this week
Mortgage interest rates this month
NerdWallet home and mortgages expert Holden Lewis writes a monthly column covering the near-term forecast for mortgage rates.
Annual home buyer report
Every winter, NerdWallet collaborates with The Harris Poll to survey U.S. adults 18 years and older. The results provide a nationally representative snapshot of how Americans perceive the housing market.
2024 Home Buyer Report: Pessimism reigns as home buyers struggle and the goal of homeownership loses some of its luster.
2023 Home Buyer Report: Higher mortgage interest rates and apprehensions about the economy have Americans unsure about their ability to purchase homes.
2021 Home Buyer Report: Pent-up demand from would-be home buyers clashes with a limited supply of homes for sale.
2020 Home Buyer Report: Buying a home is a top priority, especially for younger generations, but some feel locked out of homeownership.
2019 Home Buyer Report: Recent buyers have had to get competitive to close their deals, and many feel stretched by the costs of homeownership.
2018 Home Buyer Report: Homeownership is a widely shared goal, but concerns about costs keep some buyers sidelined.
Quarterly first-time home buyer affordability report
Each quarter, NerdWallet data analyst Elizabeth Renter analyzes information from sources including the U.S. Census, the Bureau of Labor Statistics and the National Association of Realtors to better understand the challenges facing first-time home buyers.
Q4 2023: A slight bump in inventory isn’t enough to ease affordability challenges.
Q3 2023: Higher mortgage rates outpace slight price declines seen in some metros.
Q2 2023: Seasonality appears to be returning to home prices.
Q1 2023: Banks’ tighter lending standards add to the difficult climate for first-time buyers.
Q3 2022: Price increases slow, but rising mortgage rates eat into potential savings.
Q2 2022: Falling wages and price growth intensify affordability struggles.
Q1 2022: Two years’ worth of data highlights housing market challenges.
Q4 2021: High prices and low inventory are a double whammy in some markets.
Q3 2021: Moderate improvements may be blips, not trends.
Q2 2021: Notable year-over-year decline in affordability.
Q4 2020: Typical winter shifts in the housing market may help home buyers.
Q3 2020: Competition is hot for the limited supply of homes on the market.
Q2 2020: Real estate booms as the country comes out of quarantine.
Q1 2020: Home prices rise, even as the effects of the pandemic are unclear.
Elevated mortgage rates took a bite out of new home sales in February, as they declined slightly from the previous month. Builders continue to respond to affordability concerns; half of the homes sold in February cost under $400,000, compared with 45% in January.
March 25, 2024
Latest housing market columns from Holden Lewis
Additional studies and data analysis
Home buyers
Home improvement
2022 study: After a boom in renovations and DIY projects, homeowners may dial back home improvement plans (Nov. 2022).
2020 study: Homeowners prioritize DIY and paying for projects with cash (Oct. 2020).
Home sellers
2023 data analysis: Why homeowners may want to sell despite higher interest rates (March 2023).
2021 study: What to expect listing a home in a seller’s market (April 2021).
2019 study: What sellers should know before listing (May 2019) .
Housing market
Mortgage denials
2022 data analysis: Higher home prices and debt contribute to home loan denials (Nov. 2023).
2021 data analysis: Competition and lack of collateral drive mortgage denials (Oct. 2022).
2020 data analysis: Tighter lending standards make some home loans harder to obtain (Nov. 2021).
2019 data analysis: Debt-to-income ratio most-cited reason for mortgage denials (Oct. 2020).
We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.
Kelly Suzan Waggoner
April 10, 2024 at 7:50 AM
As economists await the release of this morning’s key Consumer Price Index inflation data, mortgage rates are up, with the 30-year fixed purchase rate hovering above 7% as of Wednesday, April 10, 2024.
The current average rate for a 30-year fixed-rate mortgage is 7.02% for purchase and 6.97% for refinance — up 10 basis points from 6.92% for purchase and up 4 basis points from 6.93% for refinance last Wednesday. Rates on a 15-year mortgage stand at an average 6.44% for purchase and 6.48% for refinance. The average rate on a 30-year fixed jumbo mortgage is 7.20%, up 24 basis points from last week.
Purchase rates for Wednesday, April 10, 2024
30-year fixed rate — 7.02%
20-year fixed rate — 6.81%
15-year fixed rate — 6.44%
10-year fixed rate — 6.37%
5/1 adjustable rate mortgage — 6.60%
30-year fixed FHA rate — 6.77%
30-year fixed VA rate — 7.09%
30-year fixed jumbo rate — 7.20%
Refinance rates for Wednesday, April 10, 2024
30-year fixed rate — 6.97%
20-year fixed rate — 6.81%
15-year fixed rate — 6.48%
10-year fixed rate — 6.37%
5/1 adjustable rate mortgage — 6.42%
30-year fixed FHA rate — 6.93%
30-year fixed VA rate — 7.81%
30-year fixed jumbo rate — 7.12%
Freddie Mac weekly mortgage report
Freddie Mac reports an average 6.82% for a 30-year fixed-rate mortgage, up three basis points from last week, according to its weekly survey of nationwide lenders published on April 4, 2024. The fixed rate for a 15-year mortgage is 6.06%, down five basis points from last week.
Sam Khater, Freddie Mac’s chief economist, says of the report, “While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.”
Current mortgage rates for April 10, 2024
The Fed rate does not determine mortgage rates, though it sets benchmarks that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts. The Fed has a firm goal of a 2% inflation rate, and with favorable economic reports on the job market, it’s unlikely the reserve will cut rates until that goal is within reality’s reach.
Mortgage rates in the news
Mortgage lenders keep a close eye on the key interest rate set by the Federal Reserve, the U.S.’s central bank. Called the fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation.
Key inflation report due today
The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.
Economists are awaiting the release of today’s Consumer Price Index data, which will answer whether inflation is continuing to cool. February’s Consumer Price Index data released on March 12 showed a month-over-month increase in consumer prices — a widely used indicator for inflation. The new data makes for an interesting week, what with the latest Producer Price Index due for release tomorrow.
Federal benchmark: Summer rate cut now in question
At the conclusion of its rate-setting policy meeting on March 20, 2024, the Fed left the federal funds target interest rate of 5.25% to 5.50% unchanged, marking the fifth consecutive time it’s held rates steady since July 2023. In its post-meeting statement, the Federal Reserve maintained it wouldn’t cut the key interest rate until it’s confident “that inflation is moving sustainably toward 2 percent.”
While bankers forecast three rate cuts by the end of the year, a growing group of economists now doubt whether the Fed will cut interest rates this year — including Minneapolis Fed president Neel Kashkari, who told Pensions & Investments last week, “If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all.”
Government agency Freddie Mac released its March 20 economic outlook on the housing and mortgage market that predicts mortgage rates to stay at 6.5% or higher through the summer.
NAR settlement could change homebuying
The summer homebuying season could bring with it a major change in the way Americans buy and sell homes. On March 15, the National Association of Realtors announced it had agreed to a settlement that, if approved by a federal judge, would bring an end to longstanding real estate broker commissions of up to 6% of a home’s purchase price. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, potentially saving homebuyers money in the long run — just in time for summer home sales.
4 top factors that affect your mortgage rate
The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.
Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.
Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.
Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.
Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.
Frequently asked questions about mortgage rates
What are mortgage lenders?
Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.
What does it mean to refinance a mortgage?
Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.
What factors influence mortgage rates?
Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.
When is the best time to lock in a mortgage rate?
Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan.
Can I negotiate my mortgage rate?
It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
Editor’s note: Annual percentage yields shown are as of Wednesday, April 10, 2024, at 7:45 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.
We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.
Kelly Suzan Waggoner
April 8, 2024 at 7:43 AM
Rates on popular 30-year and 15-year fixed mortgages start the week at under 7%, though with a week-over-week increase on most terms as of Monday, April 8, 2024.
The current average interest rate on a 30-year fixed mortgage is 6.97% for purchase and 6.99% for refinance — up 9 basis points for purchase and 11 basis points for refinance over the past week. Increases on a 15-year term were a more modest 4 basis points week over week for both purchase and refinance, bringing rates to 6.48% for purchase and 6.42% for refinance. The average rate for a 30-year fixed jumbo mortgage is 7.09%.
Purchase rates for Monday, April 8, 2024
30-year fixed rate — 6.97%
20-year fixed rate — 6.75%
15-year fixed rate — 6.38%
10-year fixed rate — 6.27%
5/1 adjustable rate mortgage — 6.56%
30-year fixed FHA rate — 6.85%
30-year fixed VA rate — 7.05%
30-year fixed jumbo rate — 7.09%
Refinance rates for Monday, April 8, 2024
30-year fixed rate — 6.99%
20-year fixed rate — 6.74%
15-year fixed rate — 6.42%
10-year fixed rate — 6.28%
5/1 adjustable rate mortgage — 6.42%
30-year fixed FHA rate — 6.94%
30-year fixed VA rate — 7.69%
30-year fixed jumbo rate — 7.08%
Freddie Mac weekly mortgage report
Freddie Mac reports an average 6.82% for a 30-year fixed-rate mortgage, up three basis points from last week, according to its weekly survey of nationwide lenders published on April 4, 2024. The fixed rate for a 15-year mortgage is 6.06%, down five basis points from last week.
Sam Khater, Freddie Mac’s chief economist, says of the report, “While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.”
Current mortgage rates for April 8, 2024
The Fed rate does not determine mortgage rates, though it sets benchmarks that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts. The Fed has a firm goal of a 2% inflation rate, and with favorable economic reports on the job market, it’s unlikely the reserve will cut rates until that goal is within reality’s reach.
Mortgage rates in the news
Mortgage lenders keep a close eye on the key interest rate set by the Federal Reserve, the U.S.’s central bank. Called the fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation.
Federal benchmark: Summer rate cut expected
At the conclusion of its rate-setting policy meeting on March 20, 2024, the Fed left the federal funds target interest rate of 5.25% to 5.50% unchanged, marking the fifth consecutive time it’s held rates steady since July 2023. In its post-meeting statement, the Federal Reserve repeated earlier concerns about cutting its key interest rate until it’s confident “that inflation is moving sustainably toward 2 percent.” Bankers forecast three rate cuts by the end of the year, predicting the first to come not when the Fed meets again later this month, but instead at its summer meeting in June 2024.
The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic. While inflation has cooled, Consumer Price Index data released on March 12 showed a month-over-month increase in consumer prices — a widely used indicator for inflation. The next CPI report is due for release next week on April 10, with inflation nowcasting from the Federal Reserve Bank of Cleveland suggesting a welcome decrease in rates of inflation.
Government agency Freddie Mac released its March 20 economic outlook on the housing and mortgage market that predicts mortgage rates to stay at 6.5% or higher through the summer.
NAR settlement could change homebuying
The anticipated summer rate cut could coincide with a major change in the way Americans buy and sell homes. On March 15, the National Association of Realtors announced it had agreed to a settlement that, if approved by a federal judge, would bring an end to longstanding real estate broker commissions of up to 6% of a home’s purchase price. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, potentially saving homebuyers money in the long run — just in time for summer home sales.
4 top factors that affect your mortgage rate
The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.
Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.
Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.
Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.
Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.
Frequently asked questions about mortgage rates
What are mortgage lenders?
Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.
What does it mean to refinance a mortgage?
Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.
What factors influence mortgage rates?
Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.
When is the best time to lock in a mortgage rate?
Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan.
Can I negotiate my mortgage rate?
It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
Editor’s note: Annual percentage yields shown are as of Monday, April 8, 2024, at 7:45 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.
Real joins several major players, including Anywhere Real Estate, RE/MAX, Keller Williams, Compass, and the National Association of Realtors, in reaching settlements in commissions lawsuits. With sales exceeding $12 billion in 2022, Real was one of over 90 brokerages not covered by NAR’s settlement agreement. While Real could have pursued a streamlined settlement path outlined … [Read more…]
The Community Home Lenders of America (CHLA) this week submitted a letter to the Federal Housing Administration (FHA) that urges the agency to “provide comparable down payment treatment for FHA borrowers, regardless of whether or not the seller is willing to pay the home buyer broker commission,” according to an announcement by the organization.
The letter is being sent in response to a series of real estate commission lawsuits and the recent $418 million settlement by the National Association of Realtors (NAR), with the association also agreeing to abolish the “Participation Rule” requiring sell-side agents to make an offer of compensation to buyer brokers.
CHLA contends that the settlement is “likely to result in a shifting from the home seller to the home buyer of the financial responsibility to pay buyer Realtor commissions,” and cites three key concerns in its letter addressed to FHA Commissioner Julia Gordon.
The first is a contention that large swaths of first-time homebuyers, who already face major challenges to enter the housing market, will not be able to meet higher down payment thresholds necessary to pay the buyer’s agent commission when using FHA financing.
“We believe that FHA borrowers should not have to make a much higher down payment merely because the seller is (arbitrarily) unwilling to fund the buyer agent commission,” the letter stated.
The CHLA also raises concerns about preexisting biases that may impact borrowers using FHA financing, a bias they contend has been demonstrated in the past.
“Existing (and well documented) home seller biases against buyers with FHA loans will be exacerbated, because of concerns over the buyer’s ability to make higher down payments,” the letter stated.
The third highlighted concern stems from the potential for inflated sales prices based on commission impacts, with CHLA contending that sellers “may use their leverage over the higher down payment levels to extract a higher sales price in exchange for agreeing to pay the buyer agent commission.”
The letter provides a series of prototype loan scenarios that could spin out of the settlement, illustrating CHLA’s arguments. Among the scenarios is one that CHLA hopes will become standard practice, in which “every home seller will be willing to pay the buyer agent commission, as a courtesy and without extracting a higher price in exchange for doing so,” the letter stated. “However, we do not have confidence that this will be the case.”
FHA borrowers are particularly vulnerable to sellers who may try to leverage a higher sales price, since “paying cash for their agent’s commission may not be economically feasible [for FHA buyers],” the letter read. “Having spent several years building up cash reserves for the down payment, the homebuyer will thus have to wait a few years longer to accumulate the cash necessary to fund this amount.”
Late last month, FHA addressed a common question the agency had received from interested stakeholders, who asked how the proposed settlement agreement will affect the treatment of seller-paid buyer broker fees in transactions that use FHA-insured mortgage financing.
“Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met,” the agency said in an informational notice distributed to professionals via email and published online.
Editor’s note: An FHA statement on a different matter was erroneously included in a previous version of this article.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a mortgage research firm that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our methodology here.
Mortgage rates have moved gradually over the past few weeks, with the 30-year fixed-rate mortgage reaching 7.20% APR today, after standing at 7.45% a month ago, according to data from Curinos analyzed by MarketWatch Guides.
Rates moved upward just before last week’s meeting of the Federal Reserve. While the Fed kept interest rates steady, Chairman Jerome Powell indicated in a press conference Wednesday that the board still expected to cut interest rates three times in 2024 despite “seasonal effects” causing a temporary rise in inflation.
Last month’s home prices rose 9.5% month-over-month for February, the largest increase in a year. The median home price increased 5.7% from last year, to $384,500, the National Association of Realtors reported on Thursday.
Here are today’s average mortgage rates:
30-year fixed mortgage rate: 7.20%
15-year fixed mortgage rate: 6.46%
5/6 ARM mortgage rate: 6.99%
Jumbo mortgage rate: 7.10%
Current Mortgage Rates
Product
Rate
Last Week
Change
30-Year Fixed Rate
7.20%
7.19%
+0.01
15-Year Fixed Rate
6.46%
6.48%
-0.02
5/6 ARM
6.99%
6.98%
+0.01
7/6 ARM
7.17%
7.14%
+0.03
10/6 ARM
7.20%
7.22%
-0.02
30-Year Fixed Rate Jumbo
7.10%
7.09%
+0.01
30-Year Fixed Rate FHA
6.93%
6.90%
+0.03
30-Year Fixed Rate VA
6.98%
6.98%
0.00
Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Friday, March 29, 2024. Actual rates may vary.
>> View historical mortgage rate trends
Mortgage Rates for Home Purchase
30-year fixed-rate mortgages are up, +0.01
The average 30-year fixed-mortgage rate is 7.20%. Since the same time last week, the rate is up, changing +0.01 percentage points.
At the current average rate, you’ll pay $678.79 per month in principal and interest for every $100,000 you borrow. You’re paying more compared to last week when the average rate was 7.19%.
15-year fixed-rate mortgages are down, -0.02
The average rate you’ll pay for a 15-year fixed-mortgage is 6.46%, a decrease of-0.02 percentage points compared to last week.
Monthly payments on a 15-year fixed-mortgage at a rate of 6.46% will cost approximately $868.91 per $100,000 borrowed. With the rate of 6.48% last week, you would’ve paid $870.01 per month.
5/6 adjustable-rate mortgages are up, +0.01
The average rate on a 5/6 adjustable rate mortgage is 6.99%, an increase of+0.01 percentage points over the last seven days.
Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.
Monthly payments on a 5/6 ARM at a rate of 6.99% will cost approximately $664.63 per $100,000 borrowed over the first 5 years of the loan.
Jumbo loan interest rates are up, +0.01
The average jumbo mortgage rate today is 7.10%, an increase of+0.01 percentage points over the past week.
Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.
Product
Monthly P&I per $100,000
Last Week
Change
30-Year Fixed Rate
$678.79
$678.11
+$0.68
15-Year Fixed Rate
$868.91
$870.01
-$1.10
5/6 ARM
$664.63
$663.96
+$0.67
7/6 ARM
$676.76
$674.73
+$2.03
10/6 ARM
$678.79
$680.14
-$1.35
30-Year Fixed Rate Jumbo
$672.03
$671.36
+$0.67
30-Year Fixed Rate FHA
$660.61
$658.60
+$2.01
30-Year Fixed Rate VA
$663.96
$663.96
$0.00
Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.
Factors That Affect Your Mortgage Rate
Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions and other factors all play into how rates move from week-to-week and month-to-month.
But outside of macroeconomic trends, several other factors specific to the borrower will affect the mortgage interest rate. They include:
Financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
Location: Mortgage rates vary by where you are buying a home. Areas with more lenders, and thus more competition, may have lower rates. Foreclosure laws can also impact a lender’s risk, affecting rates.
Whether borrowers are first-time homebuyers: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
Lenders: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.
How To Shop for the Best Mortgage Rate
Comparison shopping for a mortgage can be overwhelming, but it’s shown to be worth the effort. Homeowners may be able to save between $600 and $1,200 annually by shopping around for the best rate, researchers found in a recent study by Freddie Mac. That’s why we put together steps on how to shop for the best mortgage rate.
1. Check credit scores and credit reports
A borrower’s credit situation will likely determine the type of mortgage they can pursue, as well as their rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be the best option for borrowers with a FICO score between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate.
Mortgage lenders often review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans.
2. Know the options
There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important for potential borrowers to do their research and apply for the mortgage program that best fits their financial situation.
The table below describes each program, highlighting minimum credit score and down payment requirements.
Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms can range from 10 to 30 years, though most homeowners opt for a 15- or 30-year mortgage.
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3. Compare quotes across multiple lenders
Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see the “real” rate as figures listed online may not be representative of a borrower’s particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow borrowers to prequalify for a mortgage and receive a tentative loan offer with no impact to their credit score.
After gathering your loan documents – including proof of income, assets and credit – borrowers may also apply for pre-approval. Pre-approval will let them know where they stand with lenders and may also improve negotiating power with home sellers.
4. Review loan estimates
To fully understand which lender is offering the cheapest loan overall, take a look at the loan estimate provided by each lender. A loan estimate will list not only the mortgage rate, but also a borrower’s annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points.
By comparing loan estimates across lenders, borrowers can see the full breakdown of their possible costs. One lender may offer lower interest rates, but higher fees and vice versa. Looking at the loan’s APR can give you a good apples-to-apples comparison between lenders that takes into account both rates and fees.
5. Consider negotiating with lenders on rates
Mortgage lenders want to do business. This means that borrowers may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower their offered rate by much, but even a few basis points may save borrowers more than they might think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.
Expert Forecasts for Mortgage Rates
Mortgage rates have cooled significantly over the past several months. After the 30-year fixed-rate mortgage hit 8% last October, it ended 2023 closer to 7%. In fact, the average for Q4 2023 was 7.3%.
Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year.
Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.
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More Mortgage Resources
Methodology
Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our comprehensive methodology here. Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Sales of previously occupied U.S. homes rose in January from the previous month to the strongest pace in a year with homebuyers encouraged by a modest pullback in mortgage rates and more properties on the market.
Existing home sales climbed 9.5% last month from January to a seasonally adjusted annual rate of 4.38 million, the National Association of Realtors® said Thursday.
The pickup in sales helped push up home prices compared with a year earlier for the eighth month in a row. The national median sales price climbed 5.7% from a year earlier to $384,500. That’s the highest median sales price for February on records going back to 1999.
At the end of last month, there were 1.07 million unsold homes on the market, a 5.9% increase from January and up 10.3% from a year earlier. That’s the highest inventory of homes for sale for February since 2020, the NAR said.
“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, the NAR’s chief economist.
National mortgage rates edged higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans increased.
While it’s expected that rates will gradually come down this year, it may not be a straight downward path.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates last updated March 26, 2024.
The rates listed above are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, March 26th, 2024 at 7:30 a.m.
30-year mortgage rate trends upward, +0.10%
The average rate for a 30-year fixed mortgage for today is 6.98 percent, an increase of 10 basis points over the last seven days. Last month on the 26th, the average rate on a 30-year fixed mortgage was higher, at 7.15 percent.
At the current average rate, you’ll pay a combined $663.96 per month in principal and interest for every $100,000 you borrow. That’s $6.70 higher compared with last week.
There are various advantages to choosing a fixed-rate mortgage when buying new house, including predictable mortgage payments.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate trends higher, +0.06%
The average 15-year fixed-mortgage rate is 6.47 percent, up 6 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost $869 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 adjustable rate mortgage advances, +0.13%
The average rate on a 5/1 adjustable rate mortgage is 6.51 percent, rising 13 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be substantially 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 6.51 percent would cost about $633 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
The average rate for the benchmark jumbo mortgage is 7.09 percent, up 11 basis points since the same time last week. A month ago, the average rate for jumbo mortgages was higher at 7.13 percent.
At the current average rate, you’ll pay principal and interest of $671.36 for every $100,000 you borrow. That’s an extra $7.40 compared with last week.
Mortgage refinance rates
Current 30 year mortgage refinance rate goes up, +0.12%
The average 30-year fixed-refinance rate is 6.99 percent, up 12 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.16 percent.
At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100,000 you borrow. That’s $8.04 higher compared with last week.
Where are mortgage rates going?
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, 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.
The National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) are asking federal housing officials to confirm their treatment of interested party contributions (IPCs) to home purchase transactions.
In a letter addressed to Federal Housing Finance Agency (FHFA) director Sandra Thompson, Fannie Mae CEO Priscilla Almodovar, Freddie Mac CEO Michael DeVito, and Federal Housing Administration (FHA) commissioner Julia Gordon on Wednesday, the NAR and MBA wrote that it was important for the agencies and government-sponsored enterprises (GSEs) to review NAR’s commission lawsuit settlement agreement.
They asked the federal officials to “provide guidance to market participants that will ensure these new arrangements will continue to be supported by” FHA and GSE underwriting standards.
At the moment, IPCs “include concessions from the seller to the buyer for items that are traditionally paid by the buyer such as loan closing costs or rate buy-downs,” but as buyer agents are customarily paid by the listing agent, their fees are excluded from caps on the IPCs.
Under existing FHA policy, for example, if sellers continue to pay buyer-side real estate agent commissions and fees as a matter of state or local laws or customs — and if the commissions and fees are reasonable in amount — these payments would not be treated as interested party contributions provided all other requirements are met.
Under the terms of NAR’s settlement agreement, the practice of cooperative compensation is still allowed, but it cannot be offered through a Multiple Listing Service (MLS). Sellers or buyers can pay the buyer’s agent’s fees.
“Consequently, once the settlement is in effect, we believe that FHA and GSE policy should continue to exclude seller or listing agent payment of buyer agents’ commission from IPCs,” the NAR and MBA wrote. “Confirming your policies and maintaining this practice will sustain the current flow of mortgage capital to home buyers without change or delay.”
The two trade organizations urge federal officials to provides this certainty now, as they feel it is needed “to prevent disruptions that may cost homebuyers and sellers money and potentially their home purchases.”
NAR also sent a letter to the U.S. Department of Veteran Affairs (VA) on Wednesday, urging it to revise policies that prohibit veterans from paying buyer broker commissions.
The current VA rule states that a borrower using a VA loan cannot pay fees or commissions to a real estate agent unless determined “by the Under Secretary for Benefits as appropriate for inclusion … as proper local variances.”
NAR told John Bell, the executive director of VA’s Loan Guaranty Service, that the current policy would put VA buyers at a disadvantage, as they would potentially be forced to forego professional representation.