Mortgage Rates Update: June 3, 2024
Last week, 30-year mortgage rates hit a five-month high, but the trend has shifted this week with rates steadily declining each day, dropping below recent peaks. As of now, the 30-year average stands at 7.49%, reflecting a minor decrease. Rates for various new purchase mortgage types have also seen slight reductions.
National Averages of Lenders’ Best Mortgage Rates
| Loan Type | New Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 7.49% | 7.83% |
| FHA 30-Year Fixed | 7.24% | 7.55% |
| Jumbo 30-Year Fixed | 7.20% | 7.20% |
| 15-Year Fixed | 6.85% | 7.09% |
| 5/6 ARM | 7.92% | 7.99% |
Since mortgage rates can vary significantly between lenders, it is advisable to compare options and rates regularly to secure the best mortgage deal, regardless of the type of loan you are looking for.
Today’s Mortgage Rate Averages: New Purchase
Wednesday saw another slight drop in 30-year mortgage rates by 2 basis points, bringing the average down to 7.49%. This marks a 16 basis point decrease from just over a week ago when rates peaked at 7.65%
Compared to early February, current 30-year rates are higher, but still lower than the historic peak of 8.45% seen in October.
New purchase 15-year mortgage rates also saw a decrease on Wednesday, moving from 7.00% to 6.85%. This is a more affordable option compared to the peak rate of 7.59% experienced last fall.
The Weekly Freddie Mac Average
Freddie Mac’s weekly average for 30-year mortgage rates increased by 7 basis points to 7.17%, hitting its highest level since late November. This average reflects a different methodology than other sources, as it includes rates averaged over five days whereas daily averages provide a more real-time view of rate fluctuations.
Freddie Mac’s rates may differ due to the inclusion of discount points, presenting a variances compared to averages that only consider zero-point loans.
Today’s Mortgage Rate Averages: Refinancing
Refinancing rates remained relatively stable on Wednesday, with only minor fluctuations in the 30-year and 15-year refi averages.
There was minimal change in refinance averages on Wednesday, with a slight decrease in the 30-year refi average and some fluctuations in other categories.
Mortgage Rates by State
Mortgage rates can vary by state due to factors such as credit score, loan type, and lender strategies. The states with the lowest 30-year rates were Mississippi, Iowa, and Rhode Island, while states like Idaho, Arizona, Washington, and Minnesota experienced higher average rates.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are influenced by a combination of factors including bond market trends, Federal Reserve policies, and competition among lenders. These factors interact in complex ways, making it challenging to attribute rate changes to a single cause.
Recent shifts in mortgage rates have been affected by macroeconomic conditions, specifically changes in the Federal Reserve’s bond-buying policies. The Fed’s decisions have had a significant impact on mortgage rates in recent years.
How We Track Mortgage Rates
The national averages mentioned are based on rates offered by top lenders, reflecting what typical customers might expect. Our calculations consider a range of factors, such as credit scores and loan-to-value ratios, providing a more realistic view compared to advertised teaser rates.
For state-specific rates, we list the lowest rate offered in each state, using the same criteria for consistency and comparability.
