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 Tennessee Housing Development Agency provides a few programs to help first-time homebuyers, active-duty service members and veterans get into a home.
- Available to: Eligible first-time homebuyers and repeat homebuyers.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: Makes it possible to take advantage of down payment assistance through the Great Choice Plus Loan.
- Available to: Eligible active-duty service members, veterans, reservists and their spouses.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: This type of Great Choice Home Loan waives the requirement to be a first-time homebuyer and provides an interest rate discount of 0.5 as well as access to 100% funding through a VA loan. It also allows borrowers to qualify for a Great Choice Plus Loan.
- Available to: Homebuyers with a Great Choice Home Loan.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Down payment and closing cost assistance: Provides two options to assist with down payment and closing costs.
The Great Choice Plus-Amortizing is a second mortgage with a monthly payment over a 15-year term. The amount of the loan is 6% of the sales price and has the same interest rate as your mortgage. The second mortgage balance will be due if you choose to sell your home prior to the end of the loan term or refinance your mortgage.
The Great Choice Plus-Deferred is a second mortgage with deferred payments for a $6,000 loan amount over a 30-year term. There are no payments made for the term of the loan, and the loan is forgiven at the end of the 30-year term. However, the second mortgage is due if you choose to sell your home prior to the end of the loan term or choose to refinance your first mortgage.
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: