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Current Average Mortgage Rates

Current average mortgage rates as of April 4, 2024, compared to one week ago. We use rate data collected by Bankrate as reported by U.S. lenders.

Current Average Mortgage Interest Rates

If you're looking for a home, here are today's mortgage rates compared to last week.

products To assess Last week To change
30 years fixed 6.95% 6.90% +0.04
15 years fixed 6.34% 6.35% -0.01
10 years fixed 6.20% 6.30% -0.10
5/1 ARM 6.45% 6.27% +0.17
30-Year Jumbo Mortgage Rate 7.04% 7.00% +0.04
30-Year Mortgage Refinance Rate 6.98% 6.88% +0.10

Average rates offered by lenders nationwide as of April 4, 2024. We use rates collected by Bankrate to track daily mortgage rate trends.

Mortgage rates change every day. Experts recommend shopping around to make sure you're getting the lowest rate. By entering your information below, you can get a personalized quote from one of CNET's partner lenders.

About these fees: Like CNET, Bankrate is owned by Red Ventures. This tool features rates from lender partners that you can use when comparing multiple mortgage rates.

Mortgage Rate News

In recent years, high inflation and aggressive interest rate hikes by the Federal Reserve have driven up mortgage rates from their historic lows surrounding the pandemic. Since last summer, the Fed has consistently kept the federal funds rate between 5.25% and 5.5%. Although the central bank does not directly set rates for mortgages, a high federal funds rate makes borrowing more expensive, including for home equity loans.

Mortgage rates change daily, but average rates have hovered between 6.5% and 7.5% since late last fall. Today's homebuyers have less room in their budget to afford the cost of a home due to high mortgage rates and exorbitant home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand low.

What to Expect from Mortgage Rates in 2024

Mortgage analysts base their projections on different data, but most housing experts predict rates will approach 6% by the end of 2024. Ultimately, a more affordable mortgage market will depend on how quickly the Fed start cutting interest rates. Most economists predict the Fed will begin cutting interest rates later this summer.

Since mortgage rates fluctuate for many reasons – supply, demand, inflation, monetary policy and employment data – homebuyers won't see lower rates overnight and are unlikely to ever encounter rates in the 2% range again. .

“We expect mortgage rates to fall to around 6.5% by the end of this year, but there is still a lot of volatility that I think we could see,” he said Daryl Fairweatherchief economist at Redfin.

Each month brings a new set of inflation and labor data that could change how investors and the market respond and the direction mortgage rates take, he said. Odeta Kushi, deputy chief economist at First American Financial Corporation. “Continued slowing inflation, a slowing economy, and even geopolitical uncertainty can all contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation could result in higher rates,” said Kushi.

Here's a look at where some major housing authorities expect average mortgage rates to land.

Mortgage terms and types

When choosing a mortgage, consider the loan term or payment schedule. The most common mortgage terms are 15 and 30 years, although 10, 20 and 40 year mortgages also exist. You'll also need to choose between a fixed-rate mortgage, where the interest rate is set for the length of the loan, and an adjustable-rate mortgage. With an adjustable-rate mortgage, the interest rate is fixed only for a set period of time (usually five, seven, or 10 years), after which the rate adjusts annually based on the current market interest rate. Fixed-rate mortgages offer more stability and are a better option if you plan to live in a home long-term, but adjustable-rate mortgages can offer lower interest rates upfront.

30-Year Fixed-Rate Mortgages

For a 30-year fixed-rate mortgage, the average rate you'll pay is 6.95%, which is a 4 basis point increase compared to the previous week. (One basis point is 0.01%.) A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you will have a lower monthly payment.

15-Year Fixed-Rate Mortgages

The average rate for a 15-year fixed mortgage is 6.34%, which is a 1 basis point decrease from seven days ago. Although you'll have a higher monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest over the long term and pay off your mortgage sooner.

5/1 Adjustable Rate Mortgages

A 5/1 adjustable rate mortgage has an average rate of 6.45%, an increase of 17 basis points compared to the previous week. Typically, you'll get a lower introductory interest rate with a 5/1 ARM for the first five years of your mortgage. But you may pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your home within five years, an ARM may be a good option.

What affects mortgage rates?

While it's important to monitor mortgage rates if you're buying a home, remember that no one has a crystal ball. It is impossible to time the mortgage market and rates will always have some level of volatility because so many factors are at play.

“Mortgage rates tend to follow long-term Treasury yields, depending on current inflation and economic growth, as well as expectations about future economic conditions,” it says Orfe Divounguysenior macroeconomist at Zillow Home Loans.

Here are the factors that influence average home loan rates.

  • Federal Reserve Monetary Policy: The nation's central bank doesn't set interest rates, but when it adjusts the federal funds rate, mortgages tend to move in the same direction.
  • Inflation: Mortgage rates tend to rise during high inflation. Lenders often set higher interest rates on loans to compensate for lost purchasing power.
  • The bond market: Mortgage lenders often use long-term bond yields, such as the 10-year Treasury, as a benchmark for setting interest rates on home loans. When incomes rise, mortgage rates typically rise.
  • Geopolitical events: World events, such as elections, pandemics or economic crises, can also affect mortgage rates, especially when global financial markets face uncertainty.
  • Other economic factors: The bond market, employment data, investor confidence and real estate market trends such as supply and demand can also affect the direction of mortgage rates.

Calculate your monthly mortgage payment

Getting a mortgage should always depend on your financial situation and your long-term goals. The most important thing is to make a budget and try to stay within your means. CNET's mortgage calculator below can help homebuyers prepare for their monthly mortgage payment.

How to Find the Best Mortgage Rates

Although mortgage rates and home prices are high, the housing market won't remain unaffordable forever. It's always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.

  1. Save for a larger down payment: While a 20% down payment isn't necessary, a larger down payment means taking out a smaller mortgage, which will help you save on interest.
  2. Increase your credit score: You can qualify for a conventional mortgage with a credit score of 620, but a higher score of at least 740 will get you better rates.
  3. Pay debts: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not taking on other debt will put you in a better position to handle your monthly payments.
  4. Loans and research assistance: Government-sponsored loans have more flexible financing requirements than conventional loans. Some private or government-sponsored programs can also help with your down payment and closing costs.
  5. Search for creditors: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.