Mortgage Interest Rates Today, July 3, 2024 | Rates Are a Bit Higher This Week

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Average 30-year mortgage rates are currently around 20 basis points higher than they were a week ago, according to Zillow data. But we could see rates trend back down soon depending on how next week's Consumer Price Index data shakes out. 

As inflation slows, mortgage rates are expected to fall. But depending on how long this process takes, rates may remain elevated for longer than initially expected. So we might not see substantially lower rates until 2025 or 2026. 

Investors believe that the Federal Reserve will start cutting the federal funds rate at its meeting in September, according to the CME FedWatch Tool. This should remove some upward pressure off of mortgage rates and allow them to trend down a bit. 

If you're looking to start the homebuying process soon, you can limit the impact of high average rates by getting quotes from multiple mortgage lenders. This will help ensure you get the best rate possible, saving you money on your mortgage each month.  

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 Rates Tick Up (+0.20%)

The current average 30-year fixed mortgage rate is 6.73%, up 20 basis points from where it was this time last week, according to Zillow data. This rate is also up slightly compared to a month ago, when it was also 6.63%. 

At 6.73%, you'll pay $647 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 (+0.30%)

The average 20-year fixed mortgage rate is 30 basis points up from where it was last week, and is sitting at 6.43%. This time last month, the rate was 6.36%.

With a 6.43% rate on a 20-year term, your monthly payment will be $741 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 Rise (+0.17%)

The average 15-year mortgage rate is 6.12%, 17 basis points higher than last week. It's up compared to this time last month, when it was 6.02%.

With a 6.12% 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 Inch Up (+0.05%)

The 7/1 adjustable mortgage rate is up five basis points from a week ago at 6.71%. It's also up compared to a month ago, when it was at 6.64%. 

At 6.71%, your monthly payment would be $646 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 Nearly Flat (+0.03%)

The average 5/1 ARM rate is 6.69%, a three-basis-point increase from last week. It's up slightly compared to where it was a month ago, when it was 6.58%.

Here's how a 6.69% rate would affect you for the first five years: You'd pay $645 per month toward principal and interest for every $100,000 you borrow.

30-Year FHA Rates Almost Unchanged (+0.02%)

The average 30-year FHA interest rate is 5.99% today, which is just two basis points up from last week. This rate was 6.15% a month ago.

At 5.99%, you would pay $599 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 Go Up (+0.21%)

The current VA mortgage rate is 6.10%, 21 basis points higher than this time last week. This rate was 5.98% a month ago.

With a 6.10% rate, your monthly payment would be $606 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-Year Fixed Refinance Rates Increase Slightly (+0.11%)

The average 30-year refinance rate is 7.81%, 11 basis points up from last week. It's nearly flat compared to a month ago, when it was 7.80%.

Here's how a 7.81% rate would affect your monthly payments: You'd pay $721 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 Spike (+0.86%)

The current 20-year fixed refinance rate is 7.90%, which is up 86 basis points compared to a week ago. This rate was 7.33% this time last month.

A 7.90% rate on a 20-year term will result in a $830 monthly payment toward principal and interest for every $100,000 you borrow.

15-Year Fixed Refinance Rates Decrease (-0.18%)

The average 15-year fixed refinance rate is 5.96%, which is 18 basis points lower compared to last week. It's up compared to this time a month ago, when it was at 5.79%.

A 5.96% rate on a 15-year term means you'll pay $842 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 Rise (+0.41%)

The average 7/1 ARM refinance rate is 7.13%, up 41 basis points from where it was last week. It's also up slightly from a month ago, when it was 6.83%.

Refinancing into a 7/1 ARM with a 7.13% rate means your monthly payment toward principal and interest will be $674 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 Go Up (+0.18%)

The 5/1 ARM refinance rate is 6.83%, which is 18 basis points higher than it was this time last week. It's up compared to this time last month, when it was 6.22%.

A 6.83% rate will result in a monthly payment of $654 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 Flat (No Change)

The 30-year FHA refinance rate is 5.79%, which is the same as it was last week. It's also flat from a month ago.

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 Tick Up (+0.34)

The average 30-year VA refinance rate is 6.17%, which is up 34 basis points compared to where it was was last week. This rate was 5.54% a month ago.

At 6.17%, your new monthly payment would be $611 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.