Compare current mortgage rates in October 2024
Mortgage rates are finally falling, giving more potential buyers the opportunity to purchase a home.
Average mortgage rates change daily in response to a range of economic conditions and market expectations. As inflation cools and the Federal Reserve begins to cut rates, home loan rates should continue to decline gradually. Your personal rate depends on more specific factors, such as your credit score, income, loan type and lender.
Before you buy a new home, compare multiple loan offers from different lenders to find the best rate.
Read more: Weekly mortgage rate predictions
Current mortgage and refinancing interest rates
What are the current mortgage rates?
Purchase
Refinance
| Product | Interest | April |
|---|---|---|
| VA with a fixed interest rate of 30 years | 6.14% | 6.18% |
| Jumbo with a fixed interest rate of 30 years | 6.50% | 6.55% |
| 5/1ARM jumbo | 5.54% | 6.69% |
| 7/1 ARMS | 6.00% | 7.01% |
| 15 year fixed interest rate | 5.47% | 5.55% |
| 5/1-ARM | 5.87% | 6.94% |
| 7/1ARM jumbo | 5.74% | 6.73% |
| 20 year fixed interest rate | 6.02% | 6.07% |
| 30 year fixed interest rate | 6.26% | 6.31% |
| 10/1ARM | 6.44% | 6.83% |
| Jumbo with a fixed interest rate of 15 years | 5.81% | 5.89% |
| FHA with a 30-year fixed rate | 5.89% | 5.93% |
| 5/1 ARM jumbo refinance | 5.54% | 6.69% |
| 10/1 ARM Refinance | 6.42% | 6.82% |
| 7/1 ARM refinance | 5.84% | 6.76% |
| 5/1 ARM refinance | 5.79% | 6.78% |
| Jumbo refinancing with a 30-year fixed rate | 6.32% | 6.37% |
| 7/1 ARM jumbo refinance | 5.67% | 6.69% |
| Jumbo refinancing with a 15-year fixed interest rate | 5.88% | 5.95% |
| 30-year fixed rate VA refinancing | 6.27% | 6.32% |
| Refinancing with a 30-year fixed rate | 6.21% | 6.25% |
| Refinancing with a 20-year fixed rate | 6.02% | 6.08% |
| FHA 30-year fixed rate refinance | 6.01% | 6.05% |
| Refinancing with a 15-year fixed interest rate | 5.52% | 5.60% |
Updated October 1, 2024.
We use the information collected by Bankrate to track daily mortgage interest rate trends. The table above summarizes the average rates offered by lenders across the country.
Recent mortgage interest news
Changing economic data, geopolitical risks, and monetary policy adjustments from the Federal Reserve all affect the interest rate charged on a home loan.
From early 2022, mortgage interest rates rose substantially as the central bank implemented a series of rate hikes to curb inflation. The economy has cooled in recent months. Inflation is easing and the labor market is weakening, prompting the Fed to cut rates by 0.5% on September 18.
The Fed does not directly set mortgage rates; its policy decisions can affect whether loan rates rise or fall. Mortgage rates also respond to investors’ expectations of monetary policy, which explains why they started falling before the Fed cut rates in September.
Over the past two months, mortgage interest rates have fallen by more than half a percent. They are now the lowest we have seen in about two years, with the average rate on a 30-year mortgage sitting at around 6.2%.
Will mortgage interest rates go down this year?
With the Fed expected to make additional rate cuts this year and next, experts say mortgage rates will continue to do so fall slowly. It is possible that rates will move closer to 6% by the end of the year, although this will continue to depend on economic data and Fed actions.
Any shift or sign of price growth could push mortgage rates higher again and delay the central bank’s plans to cut rates further. The opposite is also true: If unemployment rises, the Fed may be forced to make larger and/or more frequent rate cuts to prevent a recession. Such a move would put downward pressure on mortgage rates, said Odeta Kushi, deputy chief economist at First American Financial Corporation.
It is not possible to say exactly to what extent mortgage interest rates will fall. Ultimately, experts say a return to the sub-3% rates common during the pandemic is unlikely.
How to get the best mortgage rate
You can’t control the broader macroeconomic factors that determine mortgage rates, but there are some ways to get a lower personal rate. Even a difference of a few tenths of a percentage point can save thousands of dollars on what you pay for your home loan.
- Build your credit score: A higher credit score can help you qualify for a lower interest rate. Try to pay your bills on time and keep your credit card balance under 30% of your credit limit. Check your credit report regularly for errors.
- Save for a larger down payment: A larger down payment lowers the loan amount you need to borrow, making you less of a risk to the lender and potentially qualifying for a lower interest rate.
- Consider a loan with a shorter term: Shorter home loan terms (such as a 15- or 10-year mortgage) generally come with lower interest rates than longer-term loans (such as 30-year mortgages). However, the monthly costs will be higher.
- Shop around for mortgage lenders: Compare rates, terms and loan estimates from at least three different mortgage lenders. If one lender offers you a lower interest rate and another offers you a better deal on closing costs, you can use that to negotiate.
What you need to know about mortgages
Your mortgage interest is the interest rate a lender charges for making the loan you need to buy a home. There are several factors that determine which rate you are offered. Some are specific to you and your financial situation, and others are affected by macro market conditions, such as inflation The Fed’s monetary policy and the total demand for loans.
The broader economy plays a key role in mortgage rates. Some important factors that you can influence affect your interest rate:
- Your credit score: Lenders offer the lowest available rates to borrowers with excellent credit scores of 740 and above. Because lower credit scores are considered riskier, lenders charge higher interest rates to compensate.
- The size of your loan: The amount of your loan can affect the interest rate you qualify for.
- The loan term: The most common mortgage is a 30-year fixed-rate loan, which spreads your payments over three decades. Shorter loans, such as 15-year mortgages, typically have lower rates but larger monthly payments.
- The loan type: The mortgage type you choose affects your interest rate. Some loans have a fixed interest rate for the entire term of the loan. Others have an adjustable rate that has lower rates at the beginning of the loan but can lead to higher payments later.
The annual percentage rate, or APR, is usually higher than the interest rate of your loan and represents the true cost of your loan. It includes interest and other charges, such as lender fees or prepaid points. So while you might be tempted with an offer for “interest rates as low as 6.5%,” instead look at the annual interest rate to see how much you’ll actually pay.
Most mortgage loans are based on a repayment schedule: you pay the same amount every month for the life of the loan, but the interest generated will be highest at the beginning and decrease as the principal (the amount you have borrowed) decreases. Your amortization schedule shows how much of your monthly payment goes toward interest and how much pays off principal. Most borrowers find a fixed, predictable monthly payment more convenient.
Advantages and disadvantages of taking out a mortgage
Positives
-
You build equity in the property instead of paying rent without an ownership share.
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You build your credit by making on-time payments.
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You can deduct the interest on the mortgage from your annual tax bill.
Disadvantages
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You are going to take on a large portion of the debt.
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You pay more than the list price due to interest costs; potentially much more over the course of a 30-year loan.
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You’ll need to budget for closing costs to close on the mortgage, which can run into tens of thousands of dollars in some states.
Mortgage lenders often post their rates for different mortgage types, which can help you research and determine where to apply for pre-approval. An advertised rate is not always the rate you get. When shopping for a new mortgage, it is important to compare not only the mortgage interest rate, but also the closing costs and other costs associated with the loan. Experts recommend shopping around and contacting multiple lenders for quotes without rushing the process.
How to refinance your mortgage
When you refinance your mortgage, you exchange your current home loan for a new one, ideally with better conditions.
Determine whether you want to do a cash-out refinance or a rate-and-term refinance. With a cash-out refinance, you take out a new mortgage that is larger than your existing mortgage and pocket the difference in cash. With a refinancing based on interest and term, you take out a loan of the same size as your existing mortgage, only with a new interest rate and/or term.
The refinancing process feels the same as securing your existing mortgage. You must choose a lender, apply for the loan, wait for the underwriting process to complete, have your home appraised and close on your new loan. Just like with your original mortgage, refinancing will require you to pay another set of closing costs.
Frequently asked questions
Most conventional loans require a credit score of 620 or higher, but the Federal Housing Administration and other types of loans can accommodate borrowers with a score as low as 500, depending on the lender.
Your credit score isn’t the only factor that affects your mortgage rate. Lenders will also look at your debt-to-income ratio to assess your level of risk based on the other debts you are repaying, such as student loans, car payments, and credit cards. Additionally, your loan-to-value ratio plays an important role in your mortgage rate.
An interest rate lock means that your interest rate does not change between the offer and the time you close on the house. For example, if you lock in an interest rate of 6.5% today and your lender’s interest rate rises to 7.25% in the next 30 days, you will get the lower rate. A typical fixed interest rate period is 45 days, so you are still on a tight timeline. Be sure to ask lenders about rate lock windows and the costs of securing your rate.
Mortgage interest rates are constantly changing and it is impossible to predict the market. Most experts believe that mortgage rates will gradually decline over the course of 2024. Fannie Mae predicts that the average interest rate for a 30-year mortgage will end the year at 6.2%.
