30 and 15-year rates decrease | Mortgage rates for June 24th, 2024 (2024)

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Mortgage interest rates sunk on all loan terms from a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.

Inflation has cooled somewhat, but homebuyers are still feeling limited by high prices and rates. At the close of the Fed meeting on June 12, policymakers again held off on changing interest rates. The next Fed meeting concludes July 31.

“With [the June 12] announcement, the Fed confirms its higher-for-longer position on interest rates,” says Dr. Selma Hepp, chief economist at CoreLogic. “But the stance is looking more untenable as more American households continue to pull back on spending. As more economic indicators begin to confirm this and unemployment begins to rise, the Fed will then look to cut rates. What’s not clear yet is when exactly the disinflation signs will be consistent enough for the first rate cut — we hope it's still this year.”

Often, though, the decision to buy a home isn’t based on what’s happening in the economy — it’s more personal. Depending on your situation, it might make sense to take a higher rate now and refinance later. This way you can start building equity, rather than hoping for a future of more favorable rates and home prices that might not materialize.

Loan typeToday's rateLast week's rateChange
30-year fixed6.95%7.01%-0.06
15-year fixed6.39%6.45%-0.06
5/1 ARM6.52%6.61%-0.09
30-year fixed jumbo7.05%7.15%-0.10

Rates as of June 24, 2024.

The rates listed here are marketplace averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, June 24th, 2024 at 7:30 a.m. ET.

Current 30 year mortgage rate drops, -0.06%

The average rate for a 30-year fixed mortgage for today is 6.95 percent, a decrease of 6 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.11 percent.

At the current average rate, you'll pay principal and interest of $661.95 for every $100,000 you borrow. That represents a decline of $4.02 over what it would have been last week.

Use the loan widgets on this page or head to our primary rates page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.

15-year fixed mortgage rate moves lower, -0.06%

The average rate for the benchmark 15-year fixed mortgage is 6.39 percent, down 6 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $865 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, 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 quickly.

5/1 ARM moves down, -0.09%

The average rate on a 5/1 adjustable rate mortgage is 6.52 percent, ticking down 9 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage 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 sell or refinance 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 6.52 percent would cost about $633 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.

Current jumbo mortgage rate moves down, -0.10%

The current average rate you'll pay for jumbo mortgages is 7.05 percent, a decrease of 10 basis points over the last week. This time a month ago, the average rate on a jumbo mortgage was above that at 7.26 percent.

At the average rate today for a jumbo loan, you'll pay principal and interest of $668.66 for every $100,000 you borrow. That's a decline of $6.75 from last week.

Refinance rates

30-year mortgage refinance rate declines, -0.07%

The average 30-year fixed-refinance rate is 6.94 percent, down 7 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.11 percent.

At the current average rate, you'll pay $661.28 per month in principal and interest for every $100,000 you borrow. That's down $4.69 from what it would have been last week.

Where are mortgage rates heading?

The rates on 30-year mortgages mostly follow the 10-year Treasury yield, which changes with the market, while the cost of variable-rate home loans more directly mirrors the Fed’s moves.

If and when the Fed cuts interest rates depends on evolving economic data, such as inflation and the jobs market. While inflation has fallen since its peak in 2022, it’s still well above the Fed’s target rate of 2 percent. Unemployment is still low, though in May it hit 4 percent for the first time since 2022.

“Much like that flight where departure keeps getting delayed 15 minutes at a time with no end in sight, the timetable for when the Fed begins to cut rates is equally uncertain,” says Greg McBride, CFA, Bankrate chief financial analyst.

While the Fed bases its decisions on rate changes due to broader economic factors, your rate is also affected by personal finances. Depending on your credit score, down payment, debts and income, you could be quoted a rate that's higher or lower than the trend.

What current rates mean for you and your mortgage

Mortgage rates fluctuate daily, but it appears that, for now, they will remain above the historical lows of recent years. If you’re shopping for a mortgage, 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 current market rates.

To help you uncover the best deal, get 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

  • Mortgage rate trend predictions for this week
  • Latest mortgage news for this week
  • Compare current mortgage rates for today

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.

30 and 15-year rates decrease | Mortgage rates for June 24th, 2024 (2024)

FAQs

Are mortgage rates going down in 2024? ›

Mortgage predictions for 2024

Most experts predict 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.

Is paying off a 30-year mortgage in 15 years the same as a 15-year mortgage? ›

Some people get a 30-year mortgage, thinking they'll pay it off in 15 years. If you did that, your 30-year mortgage would be cheaper because you'd save yourself 15 years of interest payments. But doing that is really no different than choosing a 15-year mortgage in the first place.

Why are 15-year mortgage rates lower than 30-year? ›

Lenders charge a lower interest rate for 15-year loans because it's easier to make predictions about repayment over a 15-year horizon than it is over a 30-year horizon. Another reason for the savings? Home buyers are borrowing the money for half the time, which dramatically reduces the cost of borrowing.

Will 2024 be a better time to buy a house? ›

Mortgage rates are expected to come down in 2024, and inventory and home sales are likely to increase. Homebuyers and sellers can also expect prices to continue to rise, albeit at a slower clip than the past couple of years.

How low will mortgage rates go in 2025? ›

There are no sources for officially projected interest rates in five years, but the Mortgage Bankers Association does predict rates on 30-year mortgages will drop to 6% by the end of 2025. Fannie Mae predicts a 6.3% rate.

What are 30-year mortgage rates going to do? ›

The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. However, recent economic developments have led some forecasters to believe that rates will remain elevated at around 7% for the remainder of this year.

What is the lowest 15-year mortgage rate ever? ›

The lowest average annual mortgage rate on 15-year fixed mortgages since 1991 was 2.66%. This occurred in both late 2012 and in April 2013. As of 2020 and 2021, the average 15-year fixed mortgage rate has dropped even further to 2.61% and 2.27%, respectively.

What happens if I pay an extra $200 a month on my mortgage? ›

If you pay $200 extra a month towards principal, you can cut your loan term by more than 8 years and reduce the interest paid by more than $44,000. Another way to pay down your mortgage in less time is to make half-monthly payments every 2 weeks, instead of 1 full monthly payment.

How can I reduce my mortgage from 30 to 15 years? ›

Options to pay off your mortgage faster include:

Pay extra each month. Bi-weekly payments instead of monthly payments. Making one additional monthly payment each year. Refinance with a shorter-term mortgage.

What happens if I make an extra payment on my 15-year mortgage? ›

By paying more than your required monthly mortgage payment, you can put that extra money directly toward the principal amount on your loan. Your interest payment is based on your principal balance, so by applying your extra payment to your principal, you could pay less in interest over time.

Have 30-year mortgage rates dropped? ›

The rate fell to 6.86% from 6.87% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.71%. This is the fourth straight weekly drop in the rate, which has mostly hovered around 7% this year.

Can I change my 15-year mortgage to a 30-year? ›

If you originally got a 15-year mortgage but find the payments challenging, refinancing to a 30-year loan can lower your payments by as much as several hundred dollars each month. Conversely, if you have a 30-year mortgage, a 15-year term can help you build equity much faster.

What is one benefit to a 30-year mortgage as opposed to a 15-year mortgage? ›

A 15-year mortgage means larger monthly payments, but a lower rate and substantial savings on interest. A 30-year mortgage gives you a more affordable monthly payment, but expect higher borrowing costs overall. You can also take out an interest-only mortgage or pay your loan off early to maximize interest savings.

What is the 30 year Fed rate? ›

30 Year Treasury Rate is at 4.36%, compared to 4.40% the previous market day and 3.86% last year. This is lower than the long term average of 4.74%.

What is the VA 15 year fixed rate? ›

The APR for 30-year, 25-year and 15-year fixed loans is 4.21%, 4.282% and 3.931%, respectively.

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