Mortgage rates still high ahead of this week’s inflation data. Mortgage rates today on July 9, 2024

For a 30-year fixed-rate mortgage, the average rate you’ll pay today is 7.07%, up 0.01% from last week. The average rate for a 15-year fixed-rate mortgage is 6.56%, down -0.03% from a week ago. Check out the chart below for a breakdown of mortgage rate movements.

The Federal Reserve has delayed rate cuts as inflation slowly improves. While experts still expect mortgage rates to gradually decline in the coming months, housing market forecasts can always change in response to economic data, geopolitical events and more.

Mortgage rates are constantly changing, but they’re likely to drop this year. To get the lowest rate, shop around and compare offers from multiple lenders. Enter your details below to receive a customized quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool includes partner rates from lenders that you can use when comparing multiple mortgage rates.

What is a good mortgage type and term?

Every mortgage has a term or payment schedule. The most common mortgage terms are 15 and 30 years, although mortgages of 10, 20 and 40 years also exist. With a fixed-rate mortgage, the interest rate is fixed for the life of the loan, which provides stability. With a variable-rate mortgage, the interest rate is only fixed for a certain period of time (usually five, seven or 10 years), after which the interest rate is adjusted annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home for the long term, but variable-rate mortgages can offer lower interest rates up front.

Mortgages with a fixed interest rate of 30 years

The average interest rate for a 30-year fixed mortgage is currently 7.07%. A 30-year fixed mortgage is the most common term. This often has a higher interest rate than a 15-year mortgage, but you do pay a lower monthly payment.

Mortgages with a fixed interest rate of 15 years

Today, the average rate for a 15-year fixed mortgage is 6.56%. While you will have a higher monthly payment than a 30-year fixed mortgage, a 15-year loan typically has a lower interest rate, meaning you will pay less interest in the long run and pay off your mortgage sooner.

5/1 variable interest rate mortgages

A 5/1 variable rate mortgage currently carries an average interest rate of 6.68%. You’ll typically get a lower introductory rate with a 5/1 ARM for the first five years of your mortgage. But you could end up paying more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your home within five years, an ARM may be a good option.

Are mortgage rates currently high?

At the start of the pandemic, mortgage rates were near record lows, around 3%. That all changed when inflation started to rise and the Federal Reserve began a series of aggressive rate hikes starting in March 2022 to slow the economy, which indirectly caused mortgage rates to rise.

Now, more than two years later, mortgage rates are still around 7%. Mortgage rates have fluctuated in recent months in response to economic data and investor expectations about when the Fed would cut rates.

Today’s homebuyers have less budget to pay the cost of a home due to high mortgage rates and high home prices. Limited housing inventory and low wage growth also contribute to the affordability crisis and keep mortgage demand low.

Mortgage rate forecasts

Most experts predict that mortgage rates will fall below 7% in the coming months. However, a sustained downward trend will depend on several factors, including upcoming inflation and labor data.

The Fed hasn’t raised rates in nearly a year, but an actual rate cut doesn’t seem imminent. Some experts say the first cut could come as early as July, but it’s more likely the Fed will cut rates in September or November.

“If the Fed takes action later this year, that would be enough for the mortgage market and mortgage rates would start to fall,” he said. Selma Heppchief economist at CoreLogic. “In that case, we could see mortgage rates around 6.5% by the end of the year.”

One thing is for sure: home buyers won’t see lower mortgage rates overnight and it’s unlikely that mortgage rates will return to the 2-3% levels of a few years ago.

Below you can see where some major housing authorities expect the average mortgage rate to end up.

Calculate your monthly mortgage payment

Getting a mortgage should always depend on your financial situation and your long-term goals. The most important thing is to create a budget and try to stay within it. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.

What are some tips for finding the best mortgage rate?

Although mortgage rates and home prices are high, the housing market won’t remain unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you get a competitive mortgage rate when the time is right.

1. Save for a larger down payment: Although a 20% down payment is not required, a higher down payment will mean you take out a smaller mortgage, saving you money on interest.
2. Increase your credit score: You qualify for a conventional mortgage with a credit score of 620, but a higher score of at least 740 will get you better interest rates.
3. Pay off debts: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. If you have no other debt, you’ll be better able to handle your monthly payments.
4. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
5. Compare different lenders: By researching and comparing multiple mortgage offers from different lenders, you can find the lowest mortgage rate for your situation.