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).
Louisiana Housing Corp. offers six assistance programs to help Louisiana homebuyers afford to purchase a home. They include down payment and closing cost loans, federal income tax credits, low fixed interest rates and low down payment options.
- Available to: Eligible Louisiana homebuyers.
- Income limits: Vary by parish based on 80% of area median income (see income limits).
- First-time homebuyers only? Yes.
- Minimum credit score: 640.
- Benefits: The program has interest rates that are below market value. Down payment and closing cost assistance between 5% and 9% is available, depending on the loan amount, along with reduced mortgage insurance.
- Available to: Eligible Louisiana homebuyers.
- Income limits: Vary by area (see income limits).
- First-time homebuyers only? Yes, unless the property is in a targeted area.
- Minimum credit score: 640.
- Benefits: The program has interest rates that are usually at market level. Down payment and closing cost assistance loan equal to 4% of the mortgage amount is available, along with reduced mortgage insurance.
- Available to: Eligible Louisiana homebuyers.
- Income limits: Vary by parish (see income limits).
- First-time homebuyers only? No.
- Minimum credit score: 640.
- Benefits: First-time and repeat buyers can get up to 4% assistance for down payment, closing costs and/or prepaid items, as well as a competitive 30-year fixed rate.
- Available to: Eligible Louisiana homebuyers in certain Delta parishes.
- Income limits: Maximum household income of $99,000.
- First-time homebuyers only? Yes.
- Minimum credit score: There is no minimum credit score required.
- Benefits: First-time homebuyers can get a 30-year, 2% fixed-rate mortgage, up to 100% financing and up to 3% closing cost and prepayment assistance.
- Available to: Low- and moderate-income borrowers.
- Income limits: Vary by parish (see income limits).
- First-time homebuyers only? Yes.
- Benefits: Homebuyers can take a federal tax credit of up to 40% of annual mortgage interest payments, up to $2,000 per year. The program can be used along with down payment assistance programs.
- Available to: Eligible Louisiana homebuyers in certain parishes.
- Income limits: Annual household income of 80% of the area median income.
- First-time homebuyers only? Yes, but certain exceptions apply.
- Benefits: Qualified homebuyers can get a loan of 20% of the purchase price up to $55,000, plus up to $5,000 for closing costs with deferred repayment until the loan is extinguished upon sale or refinance. If the homebuyer occupies the home for the full 10-year term, the soft second loan will be forgiven.
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: