Mortgage Rate Update: June 3, 2024
After experiencing a notable increase last week, mortgage rates have shown a downward trend, with rates on 30-year mortgages dropping by 15 basis points to reach an average of 7.50%. This decline follows a week of rate fluctuations, with various types of mortgage loans also experiencing rate decreases.
National Averages of Lenders’ Best Mortgage Rates
| Loan Type | New Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 7.50% | 7.84% |
| FHA 30-Year Fixed | 7.31% | 7.59% |
| Jumbo 30-Year Fixed | 7.20% | 7.20% |
| 15-Year Fixed | 6.89% | 7.13% |
| 5/6 ARM | 7.86% | 7.94% |
As mortgage rates vary among lenders, it’s advisable to shop around for the best mortgage options and to regularly compare rates, irrespective of the type of home loan you are looking for.
Today’s Mortgage Rate Averages: New Purchase
Recent fluctuations show that 30-year mortgage rates dropped by 4 basis points, following a significant increase last week. Despite the current elevated rates compared to earlier this year, they remain lower than peak levels seen in 2021.
Additionally, new purchase 15-year mortgage rates have also decreased, providing an opportunity for more affordable financing options compared to last fall.
Jumbo 30-year rates have stabilized after a recent surge, remaining at levels seen last fall.
The Weekly Freddie Mac Average
Freddie Mac’s weekly average reveals a recent increase in 30-year mortgage rates, hitting 7.10%—the first time rates have surpassed 7% this year. This reading marks a significant decrease from last year’s peak rates.
Freddie Mac’s average differs slightly from other averages due to its calculation method, but overall trends in mortgage rates are consistent across various sources.
Today’s Mortgage Rate Averages: Refinancing
Refinancing rates have also seen a decline, with reductions in various categories of refinance loans.
Major moves were observed in FHA 30-year and VA 30-year refinance rates, showcasing a favorable environment for those considering refinancing options.
Mortgage Rates by State
Mortgage rates vary by state, influenced by factors like credit scores, loan types, and lender practices. States like Mississippi and New York offer some of the lowest rates, while others like Arizona and Idaho have higher average rates.
What Causes Mortgage Rates to Rise or Fall?
- The bond market, including 10-year Treasury yields
- The Federal Reserve’s monetary policies
- Competition among lenders
These factors interact to influence mortgage rates, with recent changes reflecting a combination of market dynamics and policy decisions.
How We Track Mortgage Rates
Our national averages are based on rates from a diverse group of lenders, providing a realistic view of the mortgage rate landscape. Your personalized rate may differ based on individual factors like credit score and loan terms.
Our state-specific rates capture the lowest offers in each market, giving a snapshot of the varying mortgage rate environment across the country.
