Mortgage Interest Rates Today, May 3, 2024 | Rates Inch Down but Remain Above 7% (2024)

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Average 30-year mortgage rates are down slightly today, but they're still over 7%, according to Zillow data. Rates have remained in a relatively tight range for several weeks now.

On Wednesday, the Federal Reserve wrapped up its latest meeting with the announcement that it will continue to keep the federal funds rate steady. In his press conference following the meeting, Fed Chair Jerome Powell said that policymakers may need to keep rates elevated for longer than expected to bring inflation down to their 2% target. This means that mortgage rates will likely remain near their current levels for at least a few more months.

Once inflation slows further, the Fed is expected to start lowering the federal funds rate, which would remove some of the upward pressure off of mortgage rates. It's possible central bankers could start cutting rates in September, but if inflation data continues to come in hotter than expected, that would likely be pushed back.

Experts do still believe that inflation will slow this year, which means borrowers may finally see mortgage rates go down later in 2024.

Mortgage Rates Today

Mortgage type Average rate today

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Mortgage Refinance Rates Today

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Use ourfree mortgage calculatorto see how today's interest rates will affect your monthly payments.

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Ways you can save:

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By clicking on "More details," you'll also see how much you'll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

30-Year Fixed Mortgage Rates

This week's average 30-year fixed mortgage rate was 7.22%, according to Freddie Mac. This is a five-basis-point increase from the previous week.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms or adjustable rates.

15-Year Fixed Mortgage Rates

Average 15-year mortgage rates inched up to 6.47% this week, according to Freddie Mac data. This is a three-point increase since the week before.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.

How Do Fed Rate Hikes Affect Mortgages?

The Federal Reserve has increased the federal funds rate dramatically to try to slow economic growth and get inflation under control. So far, inflation has slowed significantly, but it's still a bit above the Fed's 2% target rate.

Mortgage rates aren't directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.

The Fed has indicated that it's likely done hiking rates and that it could start cutting this year. This would allow mortgage rates to trend down later this year.

When Will Mortgage Rates Go Down?

Mortgage rates increased dramatically over the last two years, but they're expected to go down at some point this year.

In March 2024, the Consumer Price Index rose 3.5% year-over-year. Inflation has slowed significantly since it peaked last year, but it has to slow further before rates will begin to fall.

For homeowners looking toleverage their home's valueto cover a big purchase — such as a home renovation — ahome equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.

Current HELOC ratesare relatively low compared to other loan options, including credit cards and personal loans.

Molly Grace

Mortgage Reporter

Molly Grace is a reporter at Business Insider. She covers mortgage rates, refinance rates, mortgage lender reviews, and homebuying for Personal Finance Insider.Before joining the Insider team, Molly was a blog writer for Rocket Companies, where she wrote educational articles about mortgages, homebuying, and homeownership.You can reach Molly at, or on Twitter @mollythegrace.

Mortgage Interest Rates Today, May 3, 2024 | Rates Inch Down but Remain Above 7% (2024)


Are mortgage interest rates going down in 2024? ›

Economists do expect rates to decrease further this year, though gradually. April forecasts from both Fannie Mae and the Mortgage Bankers Association predict the average 30-year rate will be at 6.4% by the end of 2024.

When was the last time mortgage interest rates were over 7%? ›

Near the end of October 2022, the 30-year mortgage rate jumped from 6.94% to 7.08%, according to Mortgage buyer Freddie Mac. Prior to that, the last time the average mortgage rate hovered around 7% was in April of 2002.

Why mortgage interest rates are going down? ›

As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates should go down. Investors are currently betting that the first Fed cut will come in September, according to the CME FedWatch Tool. This means mortgage rates could start trending down later this year.

How high will mortgage rates go in 2024? ›

Mortgage giant Fannie Mae likewise raised its outlook, now expecting 30-year mortgage rates to be at 6.4 percent by the end of 2024, compared to an earlier forecast of 5.8 percent.

Will mortgage rates ever be 3% again? ›

Lawrence Yun, chief economist at the National Association of Realtors, even told CNBC that he doesn't think mortgage rates will reach the 3% range again in his lifetime.

What is the highest mortgage rate in history? ›

Interest rates reached their highest point in modern history in October 1981 when they peaked at 18.63%, according to the Freddie Mac data. Fixed mortgage rates declined from there, but they finished the decade at around 10%. The 1980s were an expensive time to borrow money.

What is considered a good mortgage rate? ›

In today's market, a good mortgage interest rate can fall in the high-6% range, depending on several factors, such as the type of mortgage, loan term, and individual financial circ*mstances. To understand what a favorable mortgage rate looks like for you, get quotes from a few different lenders and compare them.

Can you negotiate a mortgage rate? ›

Are mortgage rates negotiable? Yes, to some degree, mortgage interest rates are negotiable. Mortgage lenders have some flexibility when it comes to the rates they offer. However, in many cases getting a lower rate on your loan will come with a price, such as paying “points” to get a lower rate.

Will mortgage interest rates go down again? ›

The general consensus among industry professionals is that mortgage rates will slowly decline in the last quarter of 2024. The projected declines have shrunk, though, in recent months. At the start of the year, for instance, Fannie Mae predicted rates would drop to 5.8%.

Will my mortgage go down if interest rates drop? ›

In theory the lower the base rate, the lower mortgage rates. And if the base rate rises, we'll usually see mortgage interest rates rise too.

Are mortgage rates increasing or decreasing right now? ›

Most rates decrease - Current mortgage rates for May 7th, 2024. The average rate you'll pay for a 30-year fixed mortgage today is 7.33, the average rate you'll pay for a 15-year fixed mortgage is 6.74 percent, and the average 5/1 ARM rate is 6.92 percent.

What will loan interest rates be in 2024? ›

Undergraduate loans will soon carry a rate of 6.53% for the 2024-2025 school year, up from 5.50% this school year. Graduate direct loans will have a rate of 8.08%, up from 7.05%. And PLUS loans for grad students and parents of undergraduates will rise to 9.08%, up from 8.05% this year.

What will mortgage rates be in 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

Where will mortgage rates be in 2026? ›

The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.


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