Mortgage Interest Rates Today, May 11, 2024 | Rates Down Nearly 30 Basis Points From Last Week

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This week, 30-year mortgage rates averaged 6.73%, a 29-basis-point drop from the previous week's average, according to Zillow data. Rates fell in response to unexpectedly weak labor market data, and they could fall further this year depending on how inflation trends.

As inflation slows and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates are expected to go down. But so far this year, inflation has remained above the level the Fed sees as supportive of a rate cut. Whether rates will drop later in 2024 depends on what the next few months of inflation data show.

Many experts still expect inflation to decelerate, but believe it will take longer than initially expected to reach the Fed's target rate of 2%. This means mortgage rates will likely remain higher for longer as well. But we could see rates trend down more substantially in the second half of the year if the Fed decides to start cutting rates in the fall.

Today's mortgage rates

Today's refinance rates

Mortgage Calculator

Use our free mortgage calculator to see how today's interest rates will affect your monthly payments:

By clicking on "More details," you'll also see how much you'll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Mortgage Rate Projection for 2024

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.

Many forecasts expect rates to fall this year now that inflation has been coming down. But recently, data has been somewhat sticky, so we may need to wait a bit longer for rates to go down. In the last 12 months, the Consumer Price Index rose by 3.5%. This is a significant slowdown compared when it peaked at 9.1% in 2022, but a slight uptick from the previous month's reading. We'll likely need to see more slowing before rates can drop substantially.

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. 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. 

When Will House Prices Come Down?

We aren't likely to see home prices drop this year. In fact, they'll probably rise.

Fannie Mae researchers expect prices to increase 4.8% in 2024 and 1.5% in 2025, while the Mortgage Bankers Association expects a 4.1% increase in 2024 and a 3.3% increase in 2024.

Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates have since eased, removing some of that pressure. The current supply of homes is also historically low, which will likely push prices up.

What Happens to House Prices in a Recession?

House prices usually drop during a recession, but not always. When it does happen, it's generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.

How Much Mortgage Can I Afford?

A mortgage calculator can help you determine how much house you can afford. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.

Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

The lower your rate, the more you'll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.