Mortgage Interest Rates Today, April 15, 2024 | Rates Are High, But They Still Could Drop This Year

These are today's mortgage and refinance rates. Rates are up in response to hot inflation. Where they go next depends on how prices trend in the coming months.

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Mortgage rates are at the highest levels we've seen all year. Average 30-year mortgage rates spiked up near 7% last week when the latest Consumer Price Index data showed that inflation ran hotter in March than it did the month before. 

Until inflation slows further and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are likely to remain elevated. They could even climb further if inflation continues to show signs of stickiness in future data reports.

Does this mean that lower mortgage rates are off the table for 2024?

Not necessarily. It's early in the year and there's a lot we don't yet know about how inflation will trend in the coming months. Fed officials have said repeatedly that they expect progress on inflation to be bumpy. It's possible that mortgage rates will still go down in 2024, but they probably won't start trending down until later in the year. And the reductions may not be as big as forecasters initially expected.

It's hard to know for certain where rates will be by the end of this year. But it does look likely that rates will remain elevated at least throughout the homebuying season, which typically lasts from spring through early fall. 

If you're planning to buy a home this year, you can save money by getting approved with multiple mortgage lenders. This enables you to compare offers and choose the lender that offers the lowest rate.

Mortgage Rates Today

Mortgage Refinance Rates Today

Mortgage Calculator

Use our free mortgage calculator to see how today's interest rates will affect your monthly payments.

By clicking on "More details," you'll also see how much you'll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

30-Year Fixed Mortgage Rates

Last week's average 30-year fixed mortgage rate was 6.88%, according to Freddie Mac. This is a six-basis-point increase from the previous week.

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.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms or adjustable rates. 

15-Year Fixed Mortgage Rates

Average 15-year mortgage rates inched up to 6.16% last week, according to Freddie Mac data. This is a 10-point increase since the week before.

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.

How Do Fed Rate Hikes Affect Mortgages?

The Federal Reserve has increased the federal funds rate dramatically to try to slow economic growth and get inflation under control. So far, inflation has slowed significantly, but it's still a bit above the Fed's 2% target rate.

Mortgage rates aren't directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy. 

The Fed has indicated that it's likely done hiking rates and that it could start cutting soon. This would allow mortgage rates to trend down later this year.

When Will Mortgage Rates Go Down?

Mortgage rates increased dramatically over the last two years, but they're expected to go down at some point this year.

In March 2024, the Consumer Price Index rose 3.5% year-over-year. Inflation has slowed significantly since it peaked last year, but it has to slow further before rates will begin to fall.

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. 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.