Published on July 15, 2024 at 2:57 AM UTC
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Thirty-year fixed mortgage rates average 7.3%, while 15-year fixed mortgage rates average 6.55% and jumbo mortgage rates average 7.32%.
*Data is current as of July 12, 2024.
30-year fixed mortgage rate
Mortgage rates on 30-year fixed loans averaged 7.3% over the past week, down from 7.33% last month and up from 7.29% a year ago.
Based on current 30-year fixed rates, you'll pay about $684 a month for every $100,000 you borrow, down from about $691 last week.
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15-year fixed mortgage rate
Mortgage rates on 15-year fixed loans averaged 6.55% over the past week, the same as last month's 6.55% and up from last year's 6.47%.
At the current 15-year fixed rate, you'd pay about $872 per month for every $100,000 you borrow, down from about $880 last week.
30-year jumbo mortgage interest rates
The average mortgage rate on a 30-year jumbo loan fell to 7.32% from 7.4% last week. Rates were down from 7.36% last month and up from 7.1% a year ago.
Based on current 30-year jumbo interest rates, you'll pay about $684 a month for every $100,000 you borrow, down from about $692 last week.
methodology
Curinos uses a standardized set of parameters to determine average mortgage rates. For conventional mortgages, the calculations are based on an owner-occupied one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $766,550. These calculations assume a loan-to-value ratio of 80%, a credit score of 740 or higher, and a fixed term of 60 days.
Frequently Asked Questions (FAQ)
How much will a 0.25-point interest rate increase affect my monthly payment?
On May 3, 2023, the Federal Reserve announced its third interest rate hike this year, this time by 25 basis points. Although the Federal Reserve does not set mortgage interest rates, an increase in the federal funds rate could prompt individual lenders to raise mortgage rates as well.
If you already have a mortgage, how this affects your monthly payments will depend on whether your loan has a fixed or variable interest rate. A fixed rate stays the same for the life of your loan, so your payments won't change. A variable rate, on the other hand, fluctuates with market conditions, which could mean a higher monthly payment.
For example, if you borrow $250,000 for an ARM with a 5.5% interest rate, your initial monthly payment would be $1,719. But after the initial period ends and the ARM converts to an adjustable rate, your payments could increase if interest rates rise. For example, if interest rates rise by just 25 basis points (5.75%), your payments would increase to $1,750.
Should you get a fixed rate mortgage or an adjustable rate mortgage?
If you don't plan on holding onto your home for a long time, an ARM may be a better option, especially if interest rates on fixed-rate loans were significantly higher at the time. This is because while ARMs tend to have lower interest rates initially than fixed-rate mortgages, interest rates may increase over time.
While fixed-rate loans have the same interest rate for their entire term, ARMs start out with a fixed rate for a period of time and then switch to a variable rate that can change for the remainder of the loan term. For example, a 5/1 ARM has a fixed rate for five years (the “5” in 5/1) and then switches to a variable rate that can change once a year (the “1” in 5/1).
Should we lower our rates?
Whether lowering your mortgage rate is the right choice for you depends on your personal situation and financial goals. If you plan to stay in your home for a long time and can afford the lowering costs, a lower rate may make sense. But if you plan to move or refinance your mortgage before the lowering costs and lower monthly payments are offset, a lower rate may not be worth it.
Interest rate reductions can be permanent or temporary and will affect your overall cost. Permanent reductions are also known as buying mortgage discount points, and typically reduce your interest rate by 0.25% by paying 1% of your loan amount per point.
On the other hand, a temporary buydown reduces your interest rate to a certain amount, then increases each year before eventually returning to your original rate. Common temporary options include 2-1 and 1-0 terms, where the first number is the amount your interest rate will be reduced by in the first year and the second number is the amount it will be reduced by the following year. Unlike discount points, which are paid by the buyer, this type of buydown can be paid by the lender, seller, or homebuilder.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and we recommend that you seek individual advice from a qualified professional for any specific financial decision. Past performance is not indicative of future results.
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Jamie Young is the Managing Editor of Loans and Mortgages at USA TODAY Blueprint. She has been a professional writer and editor for 12 years. Previously, she worked at Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has appeared in some of the most prestigious media outlets, including Yahoo, Fox Business, Time, CBS News, AOL, and MSN. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to play games, hang out with her two crazy cats (Detective Snoop and his girl Friday), and maintain her ever-growing plant collection.
Megan Horner is Editorial Director at USA TODAY Blueprint. She has over 10 years of experience in online publishing, focusing primarily on credit cards and banking. She previously served as Director of Publishing at Finder.com, where she led the publishing team for personal finance content on credit cards, banking, loans, mortgages and more. Previously, she was the editor of Credit Karma. Megan has been featured on CreditCards.com, American Banker, Lifehacker and on news broadcasts across the country. She holds a BA in English and Editing.
Ashley Harrison is the Associate Editor of Loans & Mortgages at USA TODAY Blueprint and has been working in the online finance industry since 2017. She is passionate about creating helpful content that demystifies complex financial topics. She previously worked at Forbes Advisor, Credible, LendingTree, and Student Loan Hero. Her work has been featured on Fox Business and Yahoo. Ashley is also an artist and a huge horror fan, and her short story “The Box” was produced by the award-winning NoSleep Podcast. In her spare time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.