Mortgage interest rates increased this week, according to the Mortgage Bankers Association. Mortgage application activity decreased in turn, showing that today’s buyers remain sensitive to minor fluctuations in rates.
Looking forward, mortgage interest rates are still forecasted to decline somewhat throughout 2024, as the Federal Reserve projects rate cuts will begin sometime later this year. Here are the current mortgage rates, as of June 5:
- 30-year fixed: 7.07% with 0.65 points (previous week: 7.05% with 0.63 points).
- 15-year fixed: 6.75% with 0.63 points (previous week: 6.66% with 0.69 points).
- 5/1 ARM: 6.37% with 0.63 points (previous week: 6.64% with 0.77 points).
- 3-year jumbo loans: 7.21% with 0.41 points (previous week: 7.22% with 0.43 points).
- 30-year FHA loans: 6.87% with 0.96 points (previous week: 6.85% with 0.95 points).
The state offers just one program to assist homebuyers in the state, through the Arizona Industrial Development Authority.
- Available to: Eligible Arizona homebuyers who complete a homebuyer education course and have a credit score of 640 or higher.
- Income limits: $112,785.
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate mortgage.
- Benefits: The program couples a HOME PLUS mortgage with down payment and closing cost assistance of up to 5%. The assistance comes in the form of a second mortgage loan, which has no interest rate and may be forgiven over three years. If the home is sold or the loan refinanced during that time, the remaining balance that hasn’t been forgiven will be due. If the loan isn’t forgivable, it’s due upon the sale of the home or if you refinance your loan. The HOME PLUS mortgage loan comes with reduced mortgage insurance requirements compared with a traditional conventional loan.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks: