Mortgage rates tick down again after modest gains on inflation

Mortgage rates fell again last week, with the average 30-year fixed loan dipping to 7.09%, according to Bankrate’s latest survey of large lenders. The 15-year rate fell to 6.46% and the 30-year jumbo to 7.16%.

Rates have bounced around this year as the timeline of the Federal Reserve’s rate cuts grows fuzzier.

The 30-year fixed mortgages in last week’s survey had an average total of 0.27 discount and origination points. Discount points are a way for you to reduce your mortgage rate, while origination points are fees a lender charges to create, review and process your loan.

The national median family income for 2023 was $96,300, according to the U.S. Department of Housing and Urban Development, and the median price of an existing home sold in April 2024 was $407,600, according to the National Association of Realtors (NAR). Based on a 20% down payment and a 7.09% mortgage rate, the monthly payment of $2,189 amounts to 27% of the typical family’s monthly income.

“Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications,” says Joel Kan, deputy chief economist at the Mortgage Bankers Association.

Before the recent retreat, home sales had been sluggish. The National Association of Realtors said Wednesday that home sales in April dipped to an annual pace of just 4.1 million units.