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Borrowing costs are on the decline again, with mortgage rates falling slightly this week following last month’s surge, which was blamed for cooling the housing market. The 30-year fixed-rate mortgage averaged 6.99%, and further drops—although minor—could be on the way, Freddie Mac reports.
“Mortgage rates retreated this week given incoming data showing slower growth,” says Sam Khater, Freddie Mac’s chief economist. “Rates are just shy of 7%, and we expect them to modestly decline over the remainder of 2024. If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings—but shopping around for the best rate remains tremendously beneficial.”
Indeed, a new study released this week from LendingTree shows that borrowers who gather quotes from multiple lenders—three or more—stand to potentially save an average of $212 a month on their loan. That’s equivalent to $2,544 a year, or $76,410 over the life of the loan. Home buyers in California, New Jersey and Hawaii, where home prices are typically high, could save the most—potentially $115,000 or more over the life of their loan—by shopping around for a lower mortgage rate.
At this week’s average, the monthly mortgage payment on a median-priced $400,000 home, assuming a 20% down payment, is $2,127, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®.
Freddie Mac reports the following averages with mortgage rates for the week ending June 6:
- 30-year fixed-rate mortgages: averaged 6.99%, falling from last week’s 7.03% average. A year ago, 30-year rates averaged 6.71%.
- 15-year fixed-rate mortgages: averaged 6.29%, dropping from last week’s 6.36% average. Last year at this time, 15-year rates averaged 6.07%.