Mortgage Rates Fall Below 7% This Week | June 2024 Rates Forecast

May 23, 2024 - 17 min read

Mortgage rate forecast for next week (May 27-31)

Mortgage interest rates decreased for the third straight week and dropped below 7% for the first time since early April.

The average 30-year fixed rate mortgage (FRM) fell from 7.02% on May 16 to 6.94% on May 23, according to Freddie Mac.

“Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the seven percent threshold for the first time in over a month,” said Sam Khater, chief economist at Freddie Mac. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up. Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.”

Find your lowest mortgage rate. Start here


In this article (Skip to...)


Will mortgage rates go down in June?

Mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% on Feb. 2 and as high as 7.79% on Oct. 26, according to Freddie Mac.

Find your lowest mortgage rate. Start here

The range can be largely attributed to the Federal Reserve’s ongoing fight against inflation, juxtaposed with uncertainty in the banking sector sparked by Silicon Valley Bank’s collapse. However, with duress permeating the financial market and the fallout from U.S. debt ceiling talks, the Fed may continue making hikes to bring interest rates down.

With the economy possibly heading into a recession, we may have already seen the peak of this rate cycle. Of course, interest rates are notoriously volatile and could tick back up on any given week.

Experts from CoreLogic, First American, CJ Patrick and others weigh in on whether 30-year mortgage rates will climb, fall, or level off in June.

Expert mortgage rate predictions for June

Craig Berry, branch manager at Acopia Home Loans

Prediction: Rates will moderate

“With inflation resurging, the Federal Reserve is continuing to refrain from further rate cuts, at least for now, fearing a resurgence in price hikes. Thanks to the perfect storm of dogged inflation, increasing treasury yields and the Fed’s run-off of its mortgage backed securities holdings, mortgage rates are likely to stay on pace with where they’ve been in recent months. The caveat, however, could be a strategy the Fed is implementing in June with hopes of influencing mortgage rates: reducing the amount of money in the banking system and allowing rates to naturally rise. This move could mean lower rates as we get further into June and July.”

Molly Boesel, principal economist at CoreLogic

Prediction: Rates will moderate

“Consumer inflation continues to be a driving force in interest rates. The recent Federal Reserve announcement signals that there isn’t enough confidence that inflation will continue to drop toward the 2% target. While monetary easing should come later in the year, mortgage rates most likely won’t see any meaningful drops in 2024. Look for the 30-year mortgage rate to remain in the low-7% range in June.”

Ralph DiBugnara, president at Home Qualified

Prediction: Rates will moderate

“The Fed signaled this past meeting that they will not be raising rates in the coming quarters, which I believe will be for the rest of 2024. There seemed to be more of a calmness from Fed Chair Powell in regards to current inflation and consumer spending levels. It leaves the door open for a possible rate cut later in the year and we are seeing other countries like England infer that a cut is coming. This could impact our decision making as a country. I believe we will see rates hold steady in June.”

Danielle Hale, chief economist at Realtor.com

Prediction: Rates will moderate

“The biggest tone-setter in the direction of mortgage rates in recent months has been from the inflation data. With inflation still hovering above the Fed’s 2% target, and heading the wrong direction in recent months, mortgage rates had trended higher through May when the Fed meeting and a softer inflation report brought mortgage rates a bit lower. The May inflation data out Wednesday May 15 will give the biggest insight into the likely path ahead for rates.

In the big picture, I anticipate slowing inflation and economic growth that enables mortgage rates to ease back toward the 6.5% range at the end of 2024. Whether we’ll see sufficient improvement in inflation in June to usher in that trend is still unknown. Recent upticks in consumer inflation expectations from several different consumer surveys could be a harbinger of an uptick in price growth in April. If that materializes, we could see mortgage rates reverse course and head back toward the mid-7% range. Because there is such a wide range of very plausible outcomes for mortgage rates in the months ahead, it’s important for home shoppers to rate-test their budget. Shoppers can use mortgage calculators to consider what mortgage rates as low as 6.9% or as high as 7.5% could mean for their monthly payment and home price target.”

Odeta Kushi, deputy chief economist at First American

Prediction: Rates will fall

“Recent dips in Treasury and mortgage rates, triggered by a cooling job market and the slowest pace of wage growth since 2021, hint at potential further reductions in mortgage rates if inflation continues to make progress towards the Federal Reserve’s 2% target. However, should inflation remain stickier than anticipated, it would bolster the Fed’s stance on maintaining higher rates for longer.”

Rick Sharga, CEO at CJ Patrick Company

Rick Sharga, CEO at CJ Patrick Company

Prediction: Rates will moderate

“There’s virtually no chance that the Federal Reserve will cut interest rates at its June meeting, and it’s highly unlikely that mortgage rates will decline meaningfully before a Fed Funds rate cut. So the most likely scenario is that while the Fed continues its “higher for longer” strategy, 30-year fixed-rate mortgages will continue to fluctuate between 7.0-7.5% in June, and for the foreseeable future beyond that.”

Mortgage interest rates forecast next 90 days

As inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to the average 30-year fixed-rate mortgage spiking in 2023.

With inflation gradually cooling, the Fed adjusted its policies with skipped hikes and cuts are expected this year. Additionally, the economy showing signs of slowing has many experts believing mortgage interest rates will gradually descend in 2024.

Find your lowest mortgage rate. Start here

Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy.

Mortgage rate predictions for 2024

The 30-year fixed-rate mortgage averaged 7.02% as of May 16, according to Freddie Mac. All five major housing authorities we looked at project 2024’s second quarter average to finish below that.

The Mortgage Bankers Association and National Association of Realtors sit at the low end of the group, predicting the average 30-year fixed interest rate to settle at 6.68% for Q2. Meanwhile, the National Association of Realtors had the highest forecast of 7.10%.

Housing Authority30-Year Mortgage Rate Forecast (Q2 2024)
National Association of Home Builders6.68%
Fannie Mae6.70%
Mortgage Bankers Association6.70%
Wells Fargo7.05%
National Association of Realtors7.10%
Average Prediction6.85%

Mortgage rates decreased for the third consecutive week.

The average 30-year fixed rate dropped from 7.02% on May 16 to 6.94% on May 23. The average 15-year fixed mortgage rate also fell, going from 6.28% to 6.24%.

Get started shopping for mortgage rates

MonthAverage 30-Year Fixed Rate
April 20236.34%
May 20236.43%
June 20236.71%
July 20236.84%
August 20237.07%
September 20237.20%
October 20237.62%
November 20237.44%
December 20236.82%
January 20246.64%
February 20246.78%
March 20246.82%
April 20246.99%

Source: Freddie Mac

After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023. Many experts and industry authorities believe they will follow a downward trajectory into 2024. Whatever happens, interest rates are still below historical averages.

Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong credit.

Just make sure you shop around to find the best lender and lowest rate for your unique situation.

Many mortgage shoppers don’t realize there are different types of rates in today’s mortgage market. But this knowledge can help home buyers and refinancing households find the best value for their situation.

Find your lowest mortgage rate. Start here

Which mortgage loan is best?

The best mortgage for you depends on your financial situation and your goals.

For instance, if you want to buy a high-priced home and you have great credit, a jumbo loan is your best bet. Jumbo mortgages allow loan amounts above conforming loan limits, which max out at $ in most parts of the U.S.

On the other hand, if you’re a veteran or service member, a VA loan is almost always the right choice. VA loans are backed by the U.S. Department of Veterans Affairs. They provide ultra-low rates and never charge private mortgage insurance (PMI). But you need an eligible service history to qualify.

Conforming loans and FHA loans (those backed by the Federal Housing Administration) are great low-down-payment options.

Conforming loans allow as little as 3% down with FICO scores starting at 620. FHA loans are even more lenient about credit; home buyers can often qualify with a score of 580 or higher, and a less-than-perfect credit history might not disqualify you.

Finally, consider a USDA loan if you want to buy or refinance real estate in a rural area. USDA loans have below-market rates — similar to VA — and reduced mortgage insurance costs. The catch? You need to live in a ‘rural’ area and have moderate or low income to be USDA-eligible.

Mortgage rate strategies for June 2024

Mortgage rates continue to display their famous volatility in 2024. Anticipated Fed cuts provide hope for optimism, but ongoing inflation battles keep driving growth.

Find your lowest mortgage rate. Start here

The central bank held off on a rate hike in its past five meetings, preferring to see if the economy would keep cooling organically. At the most recent meeting in May, the FOMC projected cuts starting as early as June. As always, the committee said it would adjust its policies as necessary — which could mean additional hikes or possibly none at all.

Here are just a few strategies to keep in mind if you’re mortgage shopping in the coming months.

Be ready to move quickly

Indecision can lead to failure or missed opportunities. That holds true in home buying as well.

Although the housing market is becoming more balanced than the recent past, it still favors sellers. Prospective borrowers should take the lessons learned from the last few years and apply them now even though conditions are less extreme.

“Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. Buyers should get pre-approved (not pre-qualified) for their mortgage, so that the seller has some certainty about the deal closing. And be ready to close quickly — a long escrow period will put you at a disadvantage.

And it’s definitely not a bad idea to work with a real estate agent who has access to “coming soon” properties, which can give a buyer a little bit of a head start competing for the limited number of homes available,” said Rick Sharga.

Buyer demand is lower than a typical year, but the market usually heats up in spring and summer. Being decisive (and prepared) should only play to your advantage.

Shopping around isn’t only for the holidays

Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost.

Lenders charge different rates for different levels of credit scores. And while there are ways to negotiate a lower mortgage rate, the easiest is to get multiple quotes from multiple lenders and leverage them against each other.

“For potential home buyers, it’s important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period,” said Odeta Kushi.

As the mortgage market slows due to lessened demand, lenders will be more eager for business. While missing out on the rock-bottom rates of 2020 and 2021 may sting, there’s always a way to use the market to your advantage.

How to shop for interest rates

Rate shopping doesn’t just mean looking at the lowest rates advertised online because those aren’t available to everyone. Typically, those are offered to borrowers with great credit who can put a down payment of 20% or more.

The rate lenders actually offer depends on:

  • Your credit score and credit history
  • Your personal finances
  • Your down payment (if buying a home)
  • Your home equity (if refinancing)
  • Your loan-to-value ratio (LTV)
  • Your debt-to-income ratio (DTI)

To figure out what rate a lender can offer you based on those factors, you have to fill out a loan application. Lenders will check your credit and verify your income and debts, then give you a ‘real’ rate quote based on your financial situation.

You should get three to five of these quotes at a minimum, then compare them to find the best offer. Look for the lowest rate, but also pay attention to your annual percentage rate (APR), estimated closing costs, and ‘discount points’ — extra fees charged upfront to lower your rate.

This might sound like a lot of work. But you can shop for mortgage rates in under a day if you put your mind to it. And shaving just a few basis points off your rate can save you thousands.

Compare mortgage and refinance rates. Start here

Mortgage interest rate FAQ

What are current mortgage rates?

Current mortgage rates are averaging 6.94% for a 30-year fixed-rate loan and 6.24% for a 15-year fixed-rate loan, according to Freddie Mac’s latest weekly rate survey. Your individual rate could be higher or lower than the average depending on your credit score, down payment, and the lender you choose to work with, among other factors.

Will mortgage rates go down next week?

Mortgage rates could decrease next week (May 27-31, 2024) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve taking measures to counteract inflation or if a global event brings economic uncertainty.

Will mortgage interest rates go down in 2024?

If inflation continues to dissipate and the economy cools or goes into a recession, it’s likely mortgage rates will decrease in 2024. Although, it’s important to remember that interest rates are notoriously volatile and are driven by many factors, so they can rise during any given week.

Will mortgage interest rates go up in 2024?

Mortgage rates may continue to rise in 2024. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022 and 2023. However, if the U.S. does indeed enter a recession, mortgage rates could come down.

What is the lowest mortgage rate right now? 

Freddie Mac is now citing average 30-year rates in the 7% range. If you can find a rate in the 5s or 6s, you’re in a very good position. Remember that rates vary a lot by borrower. Those with perfect credit and large down payments may get below-average interest rates, while poor-credit borrowers and those with non-QM loans could see much higher rates. You’ll need to get pre-approved for a mortgage to know your exact rate.

Will there be a housing crash? 

For the most part, industry experts do not expect the housing market to crash in 2023. Yes, home prices are over-inflated. But many of the risk factors that led to the 2008 crash are not present in today’s market. Low inventory and massive buyer demand should keep the market propped up next year. Plus, mortgage lending practices are much safer than they used to be. That means there’s not a subprime mortgage crisis waiting in the wings.

What is the lowest mortgage rate ever?

At the time of this writing, the lowest 30-year mortgage rate ever was 2.65%. That’s according to Freddie Mac’s Primary Mortgage Market Survey, the most widely used benchmark for current mortgage interest rates.

Should I lock my rate now or wait?

Locking your rate is a personal decision. You should do what’s right for your situation rather than trying to time the market. If you’re buying a home, the right time to lock a rate is after you’ve secured a purchase agreement and shopped for your best mortgage deal. If you’re refinancing, you should make sure you compare offers from at least three to five lenders before locking a rate. That said, rates are rising. So the sooner you can lock in today’s market, the better.

Is now a good time to refinance? 

That depends on your situation. It’s a good time to refinance if your current mortgage rate is above market rates and you could lower your monthly mortgage payment. It might also be good to refinance if you can switch from an adjustable-rate mortgage to a low fixed-rate mortgage; refinance to get rid of FHA mortgage insurance; or switch to a short-term 10- or 15-year mortgage to pay off your loan early.

Is it worth refinancing for 1 percent? 

It’s often worth refinancing for 1 percentage point, as this can yield significant savings on your mortgage payments and total interest payments. Just make sure your refinance savings justify your closing costs. You can use a mortgage calculator or speak with a loan officer to crunch the numbers.

How do I shop for mortgage rates? 

Start by choosing a list of three to five mortgage lenders that you’re interested in. Look for lenders with low advertised rates, great customer service scores, and recommendations from friends, family, or a real estate agent. Then get pre-approved by those lenders to see what rates and fees they can offer you. Compare your offers (Loan Estimates) to find the best overall deal for the loan type you want.

What are today’s mortgage rates?

Mortgage rates are rising, but borrowers can almost always find a better deal by shopping around. Connect with a mortgage lender to find out exactly what rate you qualify for.

Time to make a move? Let us find the right mortgage for you


1Today's mortgage rates are based on a daily survey of select lending partners of The Mortgage Reports. Interest rates shown here assume a credit score of 740. See our full loan assumptions here.

Selected sources:

  • https://www.blackknightinc.com/category/press-releases
  • https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
  • http://www.freddiemac.com/research/datasets/refinance-stats/index.page
Paul Centopani
Authored By: Paul Centopani
The Mortgage Reports Editor
Paul Centopani is a writer and editor who started covering the lending and housing markets in 2018. Previous to joining The Mortgage Reports, he was a reporter for National Mortgage News. Paul grew up in Connecticut, graduated from Binghamton University and now lives in Chicago after a decade in New York and the D.C. area.