Rates go down | Mortgage rates for today, May 13, 2024

National mortgage rates sunk on 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 all moved lower.

At the beginning of the year, many experts predicted multiple rate cuts in 2024, but that's now changed. The movement of fixed mortgage rates parallels the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy, inflation and Federal Reserve decisions. At the close of the latest Fed meeting on May 1, policymakers held firm and opted not to cut rates.

“It is apparent the Fed has all but given up on multiple rate cuts in the near future,” says Ken Johnson of Florida State University. “This is not good for long-term mortgage rates. A hawkish Fed drives up the yield on 10-year Treasurys, which drives up mortgage rates.”

Whether mortgage rates move up or down, though, it’s tough to time the market. Often, the decision to buy a home comes down to what you need. 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 chancing that buying a home will become more affordable.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	7.18%	7.34%	-0.16
15-year fixed	6.62%	6.74%	-0.12
5/1 ARM	6.71%	6.74%	-0.03
30-year fixed jumbo	7.24%	7.41%	-0.17

Rates last updated May 13, 2024.

The rates listed above are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, May 13th, 2024 at 7:30 a.m. ET.

30-year fixed-rate mortgage trends down, -0.16%

Today's average 30-year fixed-mortgage rate is 7.18 percent, a decrease of 16 basis points over the last week. Last month on the 13th, the average rate on a 30-year fixed mortgage was lower, at 7.13 percent.

At the current average rate, you'll pay $677.43 per month in principal and interest for every $100,000 you borrow. That's down $10.86 from what it would have been last week.

Traditional lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home as it allows the borrower to disperse mortgage payments out over 30 years, keeping their monthly payment lower.

15-year fixed mortgage rate declines, -0.12%

The average 15-year fixed-mortgage rate is 6.62 percent, down 12 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $878 per $100,000 borrowed. That's obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, 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 dips, -0.03%

The average rate on a 5/1 adjustable rate mortgage is 6.71 percent, falling 3 basis points over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage loans 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 materially 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 6.71 percent would cost about $646 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.

Jumbo mortgage moves down, -0.17%

The average rate for the benchmark jumbo mortgage is 7.24 percent, a decrease of 17 basis points since the same time last week. This time a month ago, the average rate was greater than 7.24 at 7.40 percent.

At the average rate today for a jumbo loan, you'll pay a combined $681.50 per month in principal and interest for every $100,000 you borrow. That's $11.56 lower, compared with last week.

Refinance rates

Today's 30-year mortgage refinance rate slides, -0.16%

The average 30-year fixed-refinance rate is 7.18 percent, down 16 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 7.11 percent.

At the current average rate, you'll pay $677.43 per month in principal and interest for every $100,000 you borrow. That's down $10.86 from what it would have been last week.

Where are mortgage rates going?

If and when the Fed cuts interest rates depends on incoming economic data, such as the rate of inflation and the jobs market.

The rates on 30-year mortgages mostly follow the 10-year Treasury yield, which shifts with economic conditions, while the cost of variable-rate home loans more directly mirror the Fed’s moves.

“The Fed announcement [on May 1] of a slower run-off of Treasurys from its balance sheet should help keep a lid on mortgage rates and we may see brief declines,” says Greg McBride, CFA, Bankrate chief financial analyst. “But the focus will quickly shift back to inflation and until we start seeing better inflation numbers, the risk in mortgage rates remains to the upside.”

Broader economic factors, such as inflation and employment, affect the Fed’s decisions on rate changes, but your rate is also affected by your 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 you and your mortgage

Mortgage rates fluctuate 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

• Expert poll: Mortgage rate trend predictions for this week
• The 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.

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