Rates increase | Current mortgage rates for July 1st, 2024 (2024)

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National mortgage rates jumped for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.

Inflation has cooled somewhat, but homebuyers are still being challenged by high prices and rates. At the close of the Fed meeting on June 12, policymakers again held off on changing interest rates. The next Fed meeting concludes July 31.

“With [the June 12] announcement, the Fed confirms its higher-for-longer position on interest rates,” says Dr. Selma Hepp, chief economist at CoreLogic. “But the stance is looking more untenable as more American households continue to pull back on spending. As more economic indicators begin to confirm this and unemployment begins to rise, the Fed will then look to cut rates. What’s not clear yet is when exactly the disinflation signs will be consistent enough for the first rate cut — we hope it's still this year.”

Often, though, the decision to buy a home isn’t based on what’s happening in the economy — it’s more personal. Depending on your situation, it might make sense to take a higher rate now and refinance later. This way you can start building equity, rather than waiting for a time when rates and prices are more favorable.

Loan typeToday's rateLast week's rateChange
30-year fixed7.00%6.95%+0.05
15-year fixed6.50%6.39%+0.11
5/1 ARM6.53%6.52%+0.01
30-year fixed jumbo7.06%7.05%+0.01

Rates as of July 1, 2024.

These rates are averages based on the assumptions here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, July 1st, 2024 at 7:30 a.m. ET.

30-year mortgage rate trends higher, +0.05%

The average rate you'll pay for a 30-year fixed mortgage today is 7.00 percent, up 5 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.18 percent.

At the current average rate, you'll pay principal and interest of $665.30 for every $100,000 you borrow. Compared to last week, that's $3.35 higher.

Use our mortgage calculator to calculate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll fork up over the life of your loan.

15-year fixed mortgage rate goes up, +0.11%

The average 15-year fixed-mortgage rate is 6.50 percent, up 11 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $871 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM trends upward, +0.01%

The average rate on a 5/1 ARM is 6.53 percent, rising 1 basis point from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.53 percent would cost about $634 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.

Current jumbo mortgage rate goes up, +0.01%

Today's average rate for jumbo mortgages is 7.06 percent, an increase of 1 basis point over the last seven days. Last month on the 1st, jumbo mortgages' average rate was greater than 7.06 at 7.35 percent.

At the current average rate, you'll pay a combined $669.34 per month in principal and interest for every $100,000 you borrow. That's $0.68 higher compared with last week.

Refinance rates

30-year mortgage refinance rate trends higher, +0.06%

The average 30-year fixed-refinance rate is 7.00 percent, up 6 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.12 percent.

At the current average rate, you'll pay $665.30 per month in principal and interest for every $100,000 you borrow. That's an additional $4.02 per $100,000 compared with last week.

Where are mortgage rates heading?

The rates on 30-year mortgages mostly reflect the 10-year Treasury yield, which changes with the market, while the cost of variable-rate home loans more directly mirrors the Fed’s moves.

If and when the Fed cuts interest rates depends on evolving economic data, such as inflation and the jobs market. While inflation has fallen since its peak in 2022, it’s still well above the Fed’s target rate of 2 percent. Unemployment is still low, though in May it hit 4 percent for the first time since 2022.

“Much like that flight where departure keeps getting delayed 15 minutes at a time with no end in sight, the timetable for when the Fed begins to cut rates is equally uncertain,” says Greg McBride, CFA, Bankrate chief financial analyst.

While the Fed bases its decisions on rate changes due to broader economic factors, your rate is also affected by personal finances. Depending on your credit score, down payment, debts and income, you could be quoted a rate that's higher or lower than the trend.

What current rates mean for your mortgage

Mortgage rates change daily, but it appears that, for now, they will remain above the historical lows of recent years. If you’re shopping for a mortgage, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at current market rates.

You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

"All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, senior economic analyst for Bankrate. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

More on current mortgage rates

  • Mortgage rate trend predictions for this week
  • Latest mortgage news for this week
  • Compare mortgage rates for today

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Rates increase | Current mortgage rates for July 1st, 2024 (2024)
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