July 8, 2024—Rates Remain Fairly Steady – Forbes Advisor – Technologist

The current mortgage rates on a 30-year fixed mortgage rose by 0.03 percentage points last week to 7.39%.

Meanwhile, the APR on a 15-year fixed mortgage climbed 0.01 percentage point to 6.67% during the same period.

For existing homeowners, compare your current mortgage rates with today’s refinance rates.

Current Mortgage Rates for July 8, 2024

30-Year Mortgage Rates

Today’s average rate on a 30-year mortgage (fixed-rate) dropped to 7.39% from 7.49% yesterday. Last week, the 30-year fixed was 7.36%.

The APR on a 30-year fixed is 7.41%. This time last week, it was 7.38%. APR is the all-in cost of your loan.

At today’s interest rate of 7.39%, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay $691 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay approximately $148,913 in total interest over the life of the loan.

15-Year Mortgage Rates

The average interest rate on a 15-year mortgage (fixed-rate) is 6.67%. This same time last week, the 15-year fixed-rate mortgage was at 6.66%.

On a 15-year fixed, the APR is 6.70%. Last week it was 6.69%.

At today’s interest rate of 6.67%, a 15-year fixed-rate mortgage would cost approximately $880 per month in principal and interest per $100,000. You would pay around $58,467 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 7.40%— 0.02 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 7.40% will cost you $692 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $5,191.

How To Calculate Mortgage Payments

To get an estimate of your mortgage costs, using a mortgage calculator can help.

Simply input the following information:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR).

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

For the most part, several economic factors influence the trajectory of rates for new home loans. The recent Federal Reserve rate hikes don’t directly cause mortgage rates to rise but have indirectly caused the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

Further, the inflation rate and the general state of the economy directly impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may help rates decrease.

What Is the Best Type of Mortgage Loan?

Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%.

For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy.

For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan.

Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn’t require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan.

If you come from a qualifying military background, VA loans can be your best option. First, you don’t need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don’t pay an annual fee as the FHA and USDA loan programs require.

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