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Mortgage rates today, June 18, 2024: Rates go up

Laura Grace Tarpley
·Lead Editor and Content Strategist, Mortgages
5 min read

Mortgage rates have increased today. The 30-year fixed mortgage rate rose by seven basis points and sits at 6.57%, and the 15-year fixed mortgage rate is up by 11 basis points at 5.86%. Rates have seesawed over the last few weeks, inching up and down without any significant shifts.

So, if you're interested in buying a home, should you go for it? It depends on your timeline. If you aren't in any rush, you may want to wait until late 2025, when rates are lower. If you are otherwise financially ready to buy a home, you can buy now and refinance into a better rate in a few years — and use that time to build equity.

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Learn more: Is it a good time to buy a house?

Here are the current mortgage rates, according to our latest Zillow data:

  • 30-year fixed: 6.57%

  • 20-year fixed: 6.20%

  • 15-year fixed: 5.86%

  • 5/1 ARM: 6.66%

  • 7/1 ARM: 6.68%

  • 30-year FHA: 6.14%

  • 15-year FHA: 5.96%

  • 30-year VA: 5.88%

  • 15-year VA: 5.31%

  • 5/1 VA: 6.14%

Remember that these are the national averages and rounded to the nearest hundredth.

All mortgage rates are up today with the exception of the 5/1 ARM rate, which has held steady at 6.66%.

Dig deeper: When will mortgage rates go down? A look at 2024 and 2025.

A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use the free Yahoo Finance mortgage calculator to play around with different outcomes.

Our calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.

As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you’re paying off the same loan amount in half the time.

For example, with a $400,000 30-year mortgage and a 6.57% rate, you'll make a monthly payment of about $2,547 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $516,817 in interest.

If you get a $400,000 15-year mortgage with a 5.86% rate, you’ll pay about $3,345 monthly toward your principal and interest. However, you’ll only pay $202,145 in interest over the years.

If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.

With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term.

Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up.

Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?

In Fannie Mae’s Housing Forecast for May, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 7%. The Mortgage Bankers Association predicted a slightly lower rate of 6.5% by Q4 2024. So while rates may drop later this year, they probably won't fall as drastically as many people had initially expected.

Both organizations will release updated forecasts later this week, which will give us an even better idea of where rates are headed.

The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its meetings throughout the year. The federal funds rate doesn’t directly impact mortgage rates, but it is a good indicator of how the economy is doing overall. So when the Fed rate drops, mortgage rates typically go down too. The next Federal Reserve announcement will be on July 31.

Learn more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

According to Zillow, the national average 30-year mortgage rate is currently 6.57%. You could get an even better rate with an excellent credit score, low debt levels, or a hefty down payment. Averages also may be higher or lower depending on where you live.

Yes, mortgage rates are expected to inch down in 2024. However, we likely won't see more aggressive rate drops until 2025.

Mortgage rates will likely drop a bit in 2024, but not significantly.

The current interest rate on a 30-year fixed-rate mortgage is 6.57%, and a 15-year fixed mortgage rate is 5.86%. A 5/1 ARM rate is 6.66%.