Most rates decrease - Current mortgage rates for May 7th, 2024

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May 07, 2024 / 5 min read

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Mortgage interest rates were mostly down compared to a week ago, according to rate data compiled by Bankrate. Average rates for 30-year fixed, 15-year fixed and jumbo loans moved lower, while rates for ARM loans increased.

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 hard 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 hoping for a future of more favorable rates and home prices that might not materialize.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	7.33%	7.35%	-0.02
15-year fixed	6.74%	6.83%	-0.09
5/1 ARM	6.92%	6.72%	+0.20
30-year fixed jumbo	7.46%	7.48%	-0.02

Rates accurate as of May 7, 2024.

These rates are marketplace averages based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, May 7th, 2024 at 7:30 a.m. ET.

30-year mortgage rate slides, -0.02%

Today's average rate for the benchmark 30-year fixed mortgage is 7.33 percent, down 2 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.97 percent.

At the current average rate, you'll pay a combined $687.61 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $1.36 lower.

Learn more about 30-year mortgage rates, and compare to a variety of other loan types.

15-year fixed mortgage rate moves down, -0.09%

The average rate for the benchmark 15-year fixed mortgage is 6.74 percent, down 9 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $884 per $100,000 borrowed. That's clearly 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 save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 ARM rate climbs, +0.20%

The average rate on a 5/1 adjustable rate mortgage is 6.92 percent, up 20 basis points since the same time last week.

Adjustable-rate mortgages, or ARMs, are mortgage terms 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 loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially 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 6.92 percent would cost about $660 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 rate retreats, -0.02%

The average jumbo mortgage rate today is 7.46 percent, a decrease of 2 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was below that at 7.09 percent.

At today's average jumbo rate, you'll pay $696.48 per month in principal and interest for every $100,000 you borrow. That's lower by $1.37 than it would have been last week.

Refinance rates

Today's 30-year mortgage refinance rate moves lower, -0.04%

The average 30-year fixed-refinance rate is 7.30 percent, down 4 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 6.98 percent.

At the current average rate, you'll pay $685.57 per month in principal and interest for every $100,000 you borrow. That's down $2.72 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 changes with the market, 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 these rates mean for you and your mortgage

Mortgage rates change 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.

Keep in mind: You could save thousands over the life of your mortgage 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?”

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.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.