Mortgage Interest Rates Today, April 4, 2024 | Rates Could Start Going Down in a Couple of Months

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Mortgage rates are up this week, and they're probably going to remain elevated in the near term. Average 30-year mortgage rates have increased around 14 basis points from where they were this time last week, according to Zillow data. 

But as long as inflation continues to cool and the Federal Reserve is able to start lowering the federal funds rate, we should see mortgage rates go down this year.

Fed Chair Jerome Powell said in a speech on Wednesday that in spite of some recent hotter-than-expected inflation data, the overall economic picture "continues to be one of solid growth, a strong but rebalancing labor market, and inflation moving down toward 2% on a sometimes bumpy path." He also noted that Fed policy makers anticipate they'll be able to lower rates "at some point this year."

Investors are pricing in a possible Fed cut in June, according to the CME FedWatch Tool. So we could see mortgage rates start trending down more substantially in just a couple of months.

But Fed officials have repeatedly said they want to see more cooling inflation data before they'll consider lowering the federal funds rate. If we get more reports showing that inflation is running higher than anticipated, we'll likely need to wait until later in the year for the Fed to cut rates. 

Mortgage rates aren't directly linked to the federal funds rate, but they are influenced by how investors think Fed moves will affect the broader economy. As the Fed lowers its benchmark rate, mortgage rates should move down, too.

Current Mortgage Rates

Current Refinance Rates

Mortgage Calculator

Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.

Click "More details" for tips on how to save money on your mortgage in the long run.

Mortgage Rates for Buying a Home

30-Year Fixed Mortgage Tick Up (+0.14%)

The current average 30-year fixed mortgage rate is 6.58%, up 14 points from where it was this time last week, according to Zillow data. This rate is relatively flat compared to a month ago, when it was 6.54%. 

At 6.58%, you'll pay $637 monthly toward principal and interest for every $100,000 you borrow.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

20-Year Fixed Mortgage Rates Increase (+0.25%)

The average 20-year fixed mortgage rate is 25 points up from where it was last week, and is sitting at 6.34%. This time last month, the rate was 6.31%.

With a 6.34% rate on a 20-year term, your monthly payment will be $736 toward principal and interest for every $100,000 borrowed.

A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.

15-Year Fixed Mortgage Rates Inch Up  (+0.09%)

The average 15-year mortgage rate is 5.87%, up slightly from last week. But it's down a little bit compared to this time last month, when it was 5.94%.

With a 5.87% rate on a 15-year term, you'll pay $837 each month toward principal and interest for every $100,000 borrowed.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.

7/1 ARM Rates Nearly Flat (+0.01%)

The 7/1 adjustable mortgage rate is up a single basis point from a week ago, currently at 6.57%. It's down from a month ago, when it was at 7.07%. 

At 6.57%, your monthly payment would be $637 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.

5/1 ARM Rates Up Slightly (+0.11%)

The average 5/1 ARM rate is 6.73%, an 11-point increase from last week. It's down from where it was a month ago, when it was 6.90%.

Here's how a 6.73% rate would affect you for the first five years: You'd pay $647 per month toward principal and interest for every $100,000 you borrow.

30-year FHA Rates Rise (+0.42%)

The average 30-year FHA interest rate is 5.97% today, which is 42 basis points up from last week. This rate was 5.83% a month ago.

At 5.97%, you would pay $598 monthly toward principal and interest for every $100,000 borrowed.

FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.

30-year VA Rates Increase Somewhat (+0.16%)

The current VA mortgage rate is 5.89%, 16 basis points higher than this time last week. This rate was 5.77% a month ago.

With a 5.89% rate, your monthly payment would be $592 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-Year Fixed Refinance Rates Decrease (-0.31%)

The average 30-year refinance rate is 7.50%, 31 basis points lower than last week. It's up slightly compared to a month ago, when it was 7.34%.

Here's how a 7.50% rate would affect your monthly payments: You'd pay $699 toward principal and interest for every $100,000 borrowed.

Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.

20-Year Fixed Refinance Rates Plunge (-0.61%)

The current 20-year fixed refinance rate is 6.82%, which is 61 basis points down compared to a week ago. This rate was 7.38% this time last month.

A 6.82% rate on a 20-year term will result in a $765 monthly payment toward principal and interest for every $100,000 you borrow.

15-Year Fixed Refinance Rates Go Down (-0.57%)

The average 15-year fixed refinance rate is 6.33%, which is more than half a percentage point lower compared to last week. It's down a little bit compared to this time a month ago, when it was at 6.50%.

A 6.33% rate on a 15-year term means you'll pay $862 each month toward principal and interest for every $100,000 borrowed.

Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.

7/1 ARM Refinance Rates Tick Down (-0.52%)

The average 7/1 ARM refinance rate is 6.29%, down 52 points from where it was last week. It's down dramatically from a month ago, when it was 7.79%.

Refinancing into a 7/1 ARM with a 6.29% rate means your monthly payment toward principal and interest will be $618 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.

5/1 ARM Refinance Rates Drop (-0.16%)

The 5/1 ARM refinance rate is 6.38%, which is lower than it was this time last week. It's also down compared to this time last month, when it was 7.74%.

A 6.38% rate will result in a monthly payment of $624 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.

30-Year FHA Refinance Rates Increase Slightly (+0.13%)

The 30-year FHA refinance rate is 5.66%, which is 13 points higher than last week. This rate was 5.51% this time last month.

A 5.66% refinance rate would lead to a $578 monthly payment toward the principal and interest per $100,000 borrowed.

30-Year VA Refinance Rates Hold Steady (No Change)

The average 30-year VA refinance rate is 5.72%, which is flat compared to where it was was last week. This rate was 5.71% a month ago.

At 5.72%, your new monthly payment would be $582 toward principal and interest for every $100,000 you borrow.

Are Mortgage Rates Going Down?

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024. 

For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.