Mortgage Rates Today: May 10, 2024—Rates Remain Fairly Steady

Today, the mortgage interest rate on a 30-year fixed mortgage is 7.52%, according to Curinos, while the average rate on a 15-year mortgage is 6.81%. On a 30-year jumbo mortgage, the average rate is 7.51%.

Current Mortgage Rates for May 10, 2024

Loan Term	Rate	Change	Rate Last Week
30-Year Mortgage Rate	7.52%	-0.14	7.66%
15-Year Fixed Rate	6.81%	-0.04	6.85%
30-Year Jumbo Mortgage Rate	7.51%	-0.14	7.65%

Source: Curinos

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30-Year Mortgage Rates

Today, the average rate on a 30-year mortgage is 7.52%, compared to last week when it was 7.66%.

The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 7.55%. The APR was 7.53% last week. APR is the all-in cost of your loan.

With today’s interest rate of 7.52%, a 30-year fixed mortgage of $100,000 costs approximately $701 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. Borrowers will pay about $152,309 in total interest over the life of the loan.

15-Year Mortgage Rates

Today’s 15-year mortgage (fixed-rate) is 6.81%, down 0.04 percentage point from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 6.85%.

The APR on a 15-year fixed is 6.84%. It was 6.70% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 6.81% will cost $888 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $59,863 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 7.51%, lower than it was at this time last week. The average rate was 7.65% at this time last week.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 7.51% will pay $700 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $5,247 and you’d pay roughly $1.14 million in total interest over the life of the loan.

How To Calculate Mortgage Payments

One of the first steps in buying a house is budgeting. To get a rough idea of how much owning a home will cost, start by using a mortgage calculator to crunch the numbers.

Just input the following data to get an idea of how much a house will cost:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Much House Can I Afford?

Buying a house is a huge purchase and can put a big dent in your savings. Before you start looking, it’s important to calculate how much house you can afford and you’re willing to spend.

Not only do you want to consider your income and debt, but you also want to factor in emergency savings and any long-term financial goals such as retirement or college.

These are some basic financial factors that go into home affordability:

• Income
• Debt
• Debt-to-income ratio (DTI)
• Down payment
• Credit score

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Is the Best Type of Mortgage Loan?

Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%.

For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy.

For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan.

Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn’t require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan.

If you come from a qualifying military background, VA loans can be your best option. First, you don’t need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don’t pay an annual fee as the FHA and USDA loan programs require.

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