Mortgage Interest Rates Today, May 29, 2024 | Rates Stay Below 7% For Now
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
After finally dropping below 7% earlier this month, 30-year mortgage rates have been holding relatively steady in the mid-to-high 6% range, according to Zillow data. Where rates go next largely depends on inflation.
Until inflation slows further, the Federal Reserve is unlikely to lower the federal funds rate. Mortgages and other consumer rates are often indirectly impacted by changes to the Fed's benchmark rate. Once the Fed is able to start lowering rates, mortgage rates are expected to fall.
Inflation did cool off a bit last month, according to the Consumer Price Index, with prices rising 3.4% year over year in April, a downtick from March's 3.5% reading. But Fed officials have noted that they want to be more certain that inflation is coming down sustainably before they'll consider cutting rates.
Mortgage rates are expected to go down this year, but they might not drop as much as initially expected. The Mortgage Bankers Association's latest forecast predicts that 30-year rates could end the year around 6.5%, and that they won't fall below 6% until the end of 2025.
However, mortgage rate forecasts frequently change. If inflation continues to decelerate over the next few months, rates could drop more than currently expected.
Today's mortgage rates
Today's refinance rates
Mortgage Calculator
Use our free mortgage calculator to see how today's interest rates will affect your monthly payments:
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.
Mortgage Rate Projection for 2024
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.
Many forecasts expect rates to fall this year now that inflation has been coming down. In the last 12 months, the Consumer Price Index rose by 3.4%. This is a significant slowdown compared when it peaked at 9.1% in 2022, but we'll likely need to see more slowing before rates can drop substantially.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home 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 rates are relatively low compared to other loan options, including credit cards and personal loans.
When Will House Prices Come Down?
We aren't likely to see home prices drop this year. In fact, they'll probably rise.
Fannie Mae researchers expect prices to increase 4.8% in 2024 and 1.5% in 2025, while the Mortgage Bankers Association expects a 4.3% increase in 2024 and a 3.3% increase in 2024.
Sky high mortgage rates have pushed many hopeful buyers out of the market, slowing homebuying demand and putting downward pressure on home prices. But rates have since eased, removing some of that pressure. The current supply of homes is also historically low, which will likely push prices up.
What Happens to House Prices in a Recession?
House prices usually drop during a recession, but not always. When it does happen, it's generally because fewer people can afford to purchase homes, and the low demand forces sellers to lower their prices.
How Much Mortgage Can I Afford?
A mortgage calculator like the one above can help you determine how much house you can afford. Play around with different home prices and down payment amounts to see how much your monthly payment could be, and think about how that fits in with your overall budget.
Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.
The lower your rate, the more you'll be able to borrow, so shop around and get preapproved with multiple mortgage lenders to see who can offer you the best rate. But remember not to borrow more than what your budget can comfortably handle.
from Business Insider https://ift.tt/FfEnCwc
via IFTTT
Comments
Post a Comment