May 24, 2024—15-Year and 30-Year Mortgage Rates Move Up – Forbes Advisor – Technologist

Today, the mortgage interest rate on a 30-year fixed mortgage is 7.51%, according to Curinos. On a 15-year fixed mortgage, the average rate is 6.73%, and the average rate on a 30-year jumbo mortgage is 7.48%.

Current Mortgage Rates for May 24, 2024

30-Year Mortgage Rates

Today’s average rate on a 30-year, fixed-rate mortgage is 7.51%, which is 0.16 percentage point higher than last week.

The interest plus lender fees, called the annual percentage rate (APR), on a 30-year fixed mortgage is 7.53%. The APR was 7.37% last week.

To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 7.51% on a $100,000 loan will cost $700 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you’ll pay in interest during the loan’s lifespan is $152,013.

15-Year Mortgage Rates

Today, the 15-year mortgage rate is 6.73%, higher than it was yesterday. Last week, it was 6.54%.

On a 15-year fixed, the APR is 6.76%. Last week it was 6.57%.

At today’s interest rate of 6.73%, a 15-year fixed-rate mortgage would cost approximately $884 per month in principal and interest per $100,000. You would pay around $59,094 in total interest over the life of the loan.

Jumbo Mortgage Rates

The current average interest rate on a 30-year, fixed-rate jumbo mortgage is 7.48%— 0.05 percentage point up from last week. The 30-year jumbo mortgage rate had a 52-week APR low of 5.00% and a 52-week high of 10.50%.

A 30-year jumbo mortgage at today’s fixed interest rate of 7.48% will cost you $698 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $5,231.

What’s an APR, and Why Is It Important?

The APR, or annual percentage rate, includes the mortgage interest rate and lender fees over the life of the loan. This is an important figure because it gives borrowers a better snapshot of what they will pay for a mortgage as it shows the total cost of a mortgage if you keep it for the entire term.

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Is the Best Type of Mortgage Loan?

As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier.

Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it’s possible to qualify with a minimum score of 620. This home loan type also doesn’t require annual fees when you have at least 20% equity and waive PMI.

Several government-backed programs are better when you want to make little or no down payment:

• FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans.
• VA loans. Servicemembers, veterans and qualifying spouses don’t need to make a down payment when the sales price is less than the home’s appraisal value. VA loan credit requirements vary by lender.
• USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan. Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency’s Direct Loans program. Credit requirements differ by lender.

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