Mortgage Interest Rates Today, May 16, 2024 | Rates Drop To 5-week Low As Inflation Cools

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.

Average 30-year mortgage interest rates dropped to a five-week low as data showing that inflation cooled in April stoked optimism that the Federal Reserve may reduce the federal funds rate sooner rather than later.

Mortgage rates, which according to Zillow data had spiked above 7% late last month, fell below 6.7% after the Consumer Price Index report released Wednesday showed an inflation rate of 3.4% for April. That's down from 3.5% in March and in line with what economists were forecasting. Inflation also slowed on a monthly basis, rising just 0.3% last month.

This latest read on inflation is good news for mortgage rates. Inflation has remained elevated this year, pushing rates up. Cooler CPI data makes it more likely that the Federal Reserve will be able to start lowering the federal funds rate this year, which would allow mortgage rates and other consumer borrowing costs to finally trend down.

One month of data likely isn't enough to spur the Fed to start cutting rates. But as long as inflation continues to show signs that it's decelerating, we could get a cut at the Fed's meeting in September. This means mortgage rates could start to go down more substantially as we approach the fall.

Current Mortgage Rates

Current Refinance Rates

Mortgage Calculator

Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.

Click "More details" for tips on how to save money on your mortgage in the long run.

Mortgage Rates for Buying a Home

30-Year Fixed Mortgage Inch Down (-0.05%)

The current average 30-year fixed mortgage rate is 6.66%, down 5 basis points from where it was this time last week, according to Zillow data. This rate is down compared to a month ago, when it was 6.89%. 

At 6.66%, you'll pay $643 monthly toward principal and interest for every $100,000 you borrow.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

20-Year Fixed Mortgage Rates Drop (-0.21%)

The average 20-year fixed mortgage rate is 21 basis points down from where it was last week, and is sitting at 6.25%. This time last month, the rate was 6.64%.

With a 6.25% rate on a 20-year term, your monthly payment will be $731 toward principal and interest for every $100,000 borrowed.

A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.

15-Year Fixed Mortgage Rates Nearly Flat (+0.02%)

The average 15-year mortgage rate is 6.05%, just 2 basis points higher than last week. It's down slightly compared to this time last month, when it was 6.12%.

With a 6.05% rate on a 15-year term, you'll pay $847 each month toward principal and interest for every $100,000 borrowed.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.

7/1 ARM Rates Fall More Than Half a Percentage Point (-0.53%)

The 7/1 adjustable mortgage rate is down 53 basis points from a week ago, currently at 6.94%. It's up compared to a month ago, when it was at 6.80%. 

At 6.94%, your monthly payment would be $661 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.

5/1 ARM Rates Plunge (-0.60%)

The average 5/1 ARM rate is 6.53%, a 60-basis-point decrease from last week. It's down compared to where it was a month ago, when it was 6.87%.

Here's how a 6.53% rate would affect you for the first five years: You'd pay $634 per month toward principal and interest for every $100,000 you borrow.

30-year FHA Rates Increase (+0.22%)

The average 30-year FHA interest rate is 6.16% today, which is 22 basis points up from last week. This rate was 5.93% a month ago.

At 6.16%, you would pay $610 monthly toward principal and interest for every $100,000 borrowed.

FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.

30-year VA Rates Inch Up (+0.07%)

The current VA mortgage rate is 6.12%, seven basis points higher than this time last week. This rate was 6.25% a month ago.

With a 6.12% rate, your monthly payment would be $607 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-Year Fixed Refinance Rise (+0.81%)

The average 30-year refinance rate is 7.86%, 81 basis points higher than last week. It's also up compared to a month ago, when it was 6.98%.

Here's how a 7.86% rate would affect your monthly payments: You'd pay $724 toward principal and interest for every $100,000 borrowed.

Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.

20-Year Fixed Refinance Rates Up a Full Percentage Point (+1.07%)

The current 20-year fixed refinance rate is 7.43%, which is up 107 basis points compared to a week ago. This rate was 7.69% this time last month.

A 7.43% rate on a 20-year term will result in a $801 monthly payment toward principal and interest for every $100,000 you borrow.

15-Year Fixed Refinance Rates Increase (+0.73%)

The average 15-year fixed refinance rate is 6.87%, which is 73 basis points higher compared to last week. It's also up compared to this time a month ago, when it was at 6.59%.

A 6.87% rate on a 15-year term means you'll pay $892 each month toward principal and interest for every $100,000 borrowed.

Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.

7/1 ARM Refinance Rates Hold Steady (-0.02%)

The average 7/1 ARM refinance rate is 7.46%, down just 2 basis points from where it was last week. It's up from a month ago, when it was 6.49%.

Refinancing into a 7/1 ARM with a 7.46% rate means your monthly payment toward principal and interest will be $696 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.

5/1 ARM Refinance Rates Fall (-0.52%)

The 5/1 ARM refinance rate is 7.13%, which is 52 basis points lower than it was this time last week. It's up compared to this time last month, when it was 6.41%.

A 7.13% rate will result in a monthly payment of $674 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.

30-Year FHA Refinance Rates Flat (No Change)

The 30-year FHA refinance rate is 5.79%, which is the same as it was last week. This rate was 5.95% this time last month.

A 5.79% refinance rate would lead to a $586 monthly payment toward the principal and interest per $100,000 borrowed.

30-Year VA Refinance Rates Spike (+0.71)

The average 30-year VA refinance rate is 6.44%, which is up 71 basis points compared to where it was was last week. This rate was 5.91% a month ago.

At 6.44%, your new monthly payment would be $628 toward principal and interest for every $100,000 you borrow.

Are Mortgage Rates Going Down?

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024. 

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 further. 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.