Mortgage Interest Rates Today, May 10, 2024 | Rates Finally Dropped This Week
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Average 30-year mortgage rates dropped this week and have been hovering in the upper 6% range, according to Zillow data. But depending on how some incoming inflation data shakes out, we could see mortgage rates fluctuate next week.
Mortgage rates are unlikely to drop substantially until inflation slows further. On Wednesday, the Bureau of Labor Statistics will release April's Consumer Price Index data. If prices rose faster than expected last month, mortgage rates could tick up. But according to the Federal Reserve Bank of Cleveland's inflation nowcast, core CPI may show some signs of slowing in April's report. This would be good news for mortgage rates.
As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates should go down. Investors are currently betting that the first Fed cut will come in September, according to the CME FedWatch Tool. This means mortgage rates could start trending down later this year.
Current Mortgage Rates
Current Refinance Rates
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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 Decrease Somewhat (-0.18%)
The current average 30-year fixed mortgage rate is 6.85%, down 18 points from where it was this time last week, according to Zillow data. This rate is up compared to a month ago, when it was 6.61%.
At 6.85%, you'll pay $655 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 Drop (-0.38%)
The average 20-year fixed mortgage rate is 38 points down from where it was last week, and is sitting at 6.33%. This time last month, the rate was 6.30%.
With a 6.33% 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 Go Down (-0.18%)
The average 15-year mortgage rate is 6.11%, 18 basis points lower than last week. It's flat compared to this time last month, when it was 6.11%.
With a 6.11% rate on a 15-year term, you'll pay $850 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 Decrease (-0.20%)
The 7/1 adjustable mortgage rate is down 20 basis points from a week ago, currently at 7.59%. It's up compared to a month ago, when it was at 6.69%.
At 7.59%, your monthly payment would be $705 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 Are Down Slightly (-0.16%)
The average 5/1 ARM rate is 7.31%, a 16-point decrease from last week. It's up compared to where it was a month ago, when it was 6.84%.
Here's how a 7.31% rate would affect you for the first five years: You'd pay $686 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Tick Up (-0.13%)
The average 30-year FHA interest rate is 6.18% today, which is 13 basis points up from last week. This rate was 5.74% a month ago.
At 6.18%, you would pay $611 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 Inch Down (-0.07%)
The current VA mortgage rate is 6.16%, seven basis points lower than this time last week. This rate was 5.83% a month ago.
With a 6.16% rate, your monthly payment would be $610 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.28%)
The average 30-year refinance rate is 6.99%, 28 basis points lower than last week. It's also down slightly compared to a month ago, when it was 7.06%.
Here's how a 6.99% rate would affect your monthly payments: You'd pay $665 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 Tick Down (-0.14%)
The current 20-year fixed refinance rate is 6.60%, which is down 14 basis points compared to a week ago. This rate was 6.38% this time last month.
A 6.60% rate on a 20-year term will result in a $751 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Decrease a Bit (-0.12%)
The average 15-year fixed refinance rate is 6.15%, which is 12 points lower compared to last week. It's also down compared to this time a month ago, when it was at 6.44%.
A 6.15% rate on a 15-year term means you'll pay $852 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 Up Somewhat (+0.16%)
The average 7/1 ARM refinance rate is 7.88%, up 16 points from where it was last week. It's up from a month ago, when it was 7.61%.
Refinancing into a 7/1 ARM with a 7.88% rate means your monthly payment toward principal and interest will be $725 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 Barely Inch Up (+0.04%)
The 5/1 ARM refinance rate is 7.63%, which is just four points higher than it was this time last week. It's up compared to this time last month, when it was 7.17%.
A 7.63% rate will result in a monthly payment of $708 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 Fall (-0.27%)
The 30-year FHA refinance rate is 5.79%, which is 27 points lower than last week. This rate was 5.76% this time last month.
A 5.79% refinance rate would lead to a $586 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Drop (-0.12)
The average 30-year VA refinance rate is 5.88%, which is down 12 points compared to where it was was last week. This rate was 5.79% a month ago.
At 5.88%, your new monthly payment would be $592 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.