Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (2024)

The current average mortgage rate on a 30-year fixed-rate mortgage, the most popular home loan, is 7.07%, a 1 basis points jump from the previous week. Borrowers looking for a shorter payoff horizon with 15-year fixed mortgages face an average rate of 6.56%, a decrease of 3 basis points from a week ago. For buyers looking for guaranteed government loans for their dream homes, 30-year fixed FHA mortgages average 6.90%, compared to 6.84% the week prior.

Loan TermChangeRate
30-Year Fixed+0.017.07%
15-Year Fixed-0.036.56%
30-Year FHA+0.066.90%
5/1 ARM+0.036.68%
Source: Bankrate

30-Year Mortgage Rates: Lock in Stability With a Long-Term Promise

The benchmark 30-year fixed mortgage now stands at 7.07% after rising 1 basis points since last week. The current rates mark a sizable increase since hitting 7.80% in early October 2023, according to Bankrate data.

The Fed’s recent forecast of 2024 rate cuts could give home buyers hope for more affordable homes as the market continues to thaw.

Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (1)
  • Predictable rates that don’t change
  • Lower payments stretched out over a longer period
  • Higher loan amounts available
Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (2)
  • Higher interest rates than shorter-term loans
  • More total interest owed over the loan term
  • Longer time horizon to gain home equity

15-Year Mortgage Rates: Lower Rates, Higher Payments

Currently, the average rate on 15-year fixed mortgages is 6.56%, after a decrease of 3 basis points compared to the previous week.

Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (3)
  • Lower interest rates available
  • Reduced total interest charges over loan term
  • Home equity builds faster
  • Easier to refinance
Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (4)
  • Higher monthly payments
  • Harder to qualify due to larger payment
  • Could raise debt-to-income ratio (DTI) and hamper ability to qualify for other loans

30-Year Fixed FHA Mortgage Rates: Government-Backed With More Lenient Requirements

Federal Housing Administration (FHA) mortgages are backed by the federal government and insured by the FHA. According to Bankrate’s latest survey of U.S. mortgage lenders, the average 30-year fixed-rate FHA mortgage rate is 7.09%. This figure is an average, so you may find lower APRs by shopping and comparing reputable FHA mortgage lenders.

Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (5)
  • Minimum credit score requirements are as low as 500
  • Down payment can be as low as 3.5% with a 580 credit score
  • Closing costs can be rolled into mortgage loan
Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (6)
  • Requires mortgage insurance
  • Must be used to purchase your primary residence
  • Borrowing limits set at $498,257 in most areas but over $1 million in high-cost regions

5/1 Arm Mortgage Rates: Potentially Lower Short-Term Rates and Unpredictable Long-Term Rates

The most common adjustable-rate mortgage (ARM) is the 5/1 ARM. The “5” refers to the initial five-year period when the interest rate doesn’t change. Following this period, the “1” indicates how often your interest rate will adjust—in this case, once every year.

ARMs tend to have lower interest rates than conventional loans, but not always. As of February 12, 2024, rates for 5/1 ARMs are averaging 7.27% nationwide, according to Bankrate’s latest mortgage servicer survey data. That’s a bit higher than the average rate for 30-year, fixed-rate mortgages.

Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (7)
  • Lower initial payments
  • Mortgage rates may drop, especially if the benchmark interest rate drops
  • Flexible option for short-term borrowers who may sell before the adjustment period
Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (8)
  • Mortgage rate and monthly payment can rise significantly over time
  • Typically requires a larger down payment than other mortgage types
  • Long-term budgeting and planning can be more difficult

What Are the Different Types of Mortgage Loans?

Most homeowners finance their homes with a home loan. Fortunately, you have several mortgage options to choose from, including the following:

  1. Conventional loans:Conventional mortgages are the most common type of home loan. Unlike FHA and VA loans, they aren’t guaranteed or insured by a government agency. As such, they don’t come with benefits such as reduced payments and more lenient credit requirements. You may qualify for a conventional loan with a down payment as low as 3%, but most lenders require 5%. You can avoid paying private mortgage insurance with a down payment of at least 20%.
  2. FHA loan:An FHA loan is a mortgage insured by the Federal Housing Administration, but you must apply through an FHA-approved lender. FHA loans have more lenient lending criteria, allowing for lower credit scores and down payments as low as 3.5%. The government insures these loans to mitigate the lender’s risk, and you usually must pay mortgage insurance for the loan term (or 11 years with a down payment of 10% or more on FHA loans originated after June 3, 2013).
  3. Jumbo loan:A jumbo mortgage is a home loan that exceeds the borrowing limits of a conventional conforming loan. The 2024 baseline limit set by the Federal Housing Finance Agency (FHFA) and Freddie Mac ranges from $766,550 to $1,149,825, depending on the property’s location. Due to the large size of these loans, lenders generally have stricter lending requirements, including higher credit scores, larger down payments and higher interest rates.
  4. VA loan:VA loans are Department of Veterans Affairs mortgages designed to help servicemembers, veterans and their families purchase homes. The VA accomplishes this by allowing 0% down payments, lower interest rates and less expensive closing costs, among other features. Like FHA loans, you must apply through an authorized lender, and the VA insures the loan.
  5. USDA loan:USDA loans are issued through the U.S. Department of Agriculture to make homeownership more accessible for rural, low-income residents. Like VA loans, these mortgages don’t require a down payment and come with lower mortgage rates and insurance.

Mortgage Trends Over Time

Tips for Finding the Best Mortgage Rates

As with any loan, it’s wise to shop and compare mortgage rates to find the best loan. Here’s how to do it:

  • Check your credit scores.Minimum credit score requirements vary from lender to lender, but generally, the lower your score, the better your odds of loan approval with favorable terms. You can access your score for free throughExperian, and you can secure free copies of your credit report
  • Research your home loan options.As mentioned above, home loans exist in all shapes and sizes, including government-backed, conventional and jumbo loans. Do you want a short- or long-term loan? Fixed or variable rate? Consider your long-term needs and risk tolerance to help you determine the best type of loan for you.
  • Get preapproved.A mortgage preapproval not only improves your standing with home sellers, it also gives you a sneak peek at the potential mortgage rates you might receive. Depending on the lender, you may be able to submit the prequalification application and your supporting documents online, over the phone or in person.
  • Shop and compare rates from multiple lenders.The Consumer Financial Protection Bureau (CFPB) recommends getting loan estimates from at least three lenders. Review your offers, including the interest rate, APR, fees and monthly payments, to help you identify the best mortgage for your situation.

Improve your odds of landing a lower interest rate by improving your credit score before applying. Additionally, making a larger down payment, purchasing mortgage points and choosing a shorter loan term could help you snag a lower mortgage rate. Check Newsweek Vault for the vital mortgage rate details and strategies needed to secure a home loan with the best available terms.

Vault’s Viewpoint: Mortgage Rate Trends for 2024

The recent trend of falling mortgage rates offers a glimmer of hope for homebuyers after enduring an aggressive cycle of interest rate hikes by the Federal Reserve from March 2022 through July 2023. Freddie Mac’s chief economist, Sam Khater, highlighted the good news: “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, there will likely be a gradual thawing of the housing market in the new year.”

“Gradual” seems to be the key word here, as there appears to be a growing consensus among rate-watchers that even if rates continue to drop, it’s unlikely they’ll return to their 2020 and 2021 low or around 3% to 3.5%, a mark even the most optimistic economist doesn’t foresee hitting in 2024.

It’s worth noting, the Fed doesn’t set mortgage rates, and the federal funds rate doesn’t directly impact rates. Rather, mortgage rate trends often precede policy moves by the central bank. More accurately, mortgage rates reflect investor demand for mortgage-backed securities (MBS). These investments, in turn, are influenced by what investors think the Federal Reserve’s rate decisions will do to the overall economy.

With the Fed pausing rates three consecutive times and signaling three rate cuts in 2024, the interest rate is trending downward. If that happens, investor enthusiasm could lead to lower mortgage rates and relief for those looking to purchase or refinance a home.

Frequently Asked Questions

What’s the Difference Between Interest Rate and APR?

Interest rates and annual percentage rates (APR) are related but have different meanings. A loan’s interest rate represents the cost of borrowing money, represented as a percentage of the loan principal. By contrast, the APR provides a more complete picture of your total borrowing costs, as it includes both the interest rate and any additional fees.

Are Mortgage Rates Dropping?

Mortgage rates are determined by a combination of market forces and the loan’s risk factor. For the former, there’s not much you can do about economic factors like inflation, job growth and the overall economy.

As for the latter, lenders set your mortgage rate based on several factors you can control. For example, you may qualify for a lower credit score with a high credit score; the higher, the better. Additionally, by putting down a larger down payment, you can lower your loan-to-value ratio (LTV)—the percentage of your mortgage amount compared with the home’s price or value. A lower LTV presents less risk to the lender, which could lead to a lower mortgage rate.

When Will Mortgage Rates Go Up?

Mortgage rates escalated in 2022 and 2023 during the Federal Reserve’s aggressive rate hike cycle to curb inflation. With inflation cooling, the Fed has hinted at rate cuts in 2024. While the Fed doesn’t set home loan rates, the mortgage finance market does tend to fluctuate with the Fed’s benchmark rate.


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

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

Today’s Mortgage Rates July 9, 2024: 30-Year Rates Rise (2024)
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