Average mortgage rates dropped across all terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.
| Mortgage type | Today’s rate | Last week’s rate | Change |
|---|---|---|---|
| 30-year fixed | 6.59% | 6.69% | -0.10 |
| 15-year fixed | 5.99% | 6.14% | -0.15 |
| 5/1 ARM | 6.33% | 6.37% | -0.04 |
| 30-year fixed jumbo | 6.81% | 6.88% | -0.07 |
Rates accurate as of August 13, 2024.
The rates listed here are Bankrate’s overnight average rates and are based on the assumptions shown here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, August 13th, 2024 at 7:30 a.m. ET.
Market mortgage rates fluctuate as the economy evolves , new data releases and lenders decide how much risk they’re willing to tolerate on a given day.
Historical mortgage rates: How do today’s rates compare to years past?
The average rate on a 30-year fixed mortgage retreated under 7 percent in July — a first since February — thanks to a brighter June inflation report. Inflation has run hotter than the Federal Reserve’s 2 percent target for some time now, prompting the Fed to keep its benchmark rate elevated — a policy the central bank held firm on at its July meeting. As of now, market watchers expect the Fed to start cutting rates in September.
“The Fed’s statement [in July] seems to imply the probability of rate decrease in September has increased due to a weakening — but still strong — labor market and progress on inflation,” says Allison Kaminaga, lecturer of Mathematics and Economics at Bryant University.
The Fed doesn’t outright determine fixed mortgage rates, but its decisions matter. Mortgages tend to increase or decrease with the 10-year Treasury yield, the effective yield rate on 10-year Treasury notes. The 10-year yield rises when there’s less demand for notes — and this tends to happen when investors feel confident in the economy, including monetary policy.
Still, real life doesn’t necessarily consider the Fed, inflation and yields. If you’re in a position to buy or sell a home now, it might be better to make a move than try to wait out the market. Wherever prevailing rates are, shop lenders to help uncover the best deal.
Current 30 year mortgage rate trends down, -0.10%
Today’s average rate for the benchmark 30-year fixed mortgage is 6.59 percent, a decrease of 10 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.86 percent.
At the current average rate, you’ll pay $638.00 per month in principal and interest for every $100,000 you borrow. That’s $6.61 lower, compared with last week.
Most mortgage lenders defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers as it allows the borrower to disperse payments out over 30 years, keeping their monthly payment lower.
15-year mortgage rate eases, -0.15%
The average rate you’ll pay for a 15-year fixed mortgage is 5.99 percent, down 15 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost $843 per $100,000 borrowed.
5/1 ARM drops, -0.04%
The average rate on a 5/1 ARM is 6.33 percent, falling 4 basis points over the last week.
Monthly payments on a 5/1 ARM at 6.33 percent would cost about $621 for each $100,000 borrowed over the initial five years.
Jumbo loan interest rate declines, -0.07%
The average rate for a jumbo mortgage is 6.81 percent, a decrease of 7 basis points from a week ago. Last month on the 13th, the average rate on a jumbo mortgage was greater than 6.81 at 6.94 percent.
At today’s average jumbo rate, you’ll pay principal and interest of $652.59 for every $100,000 you borrow. That’s down $4.67 from what it would have been last week.
30-year mortgage refinance drops, -0.11%
The average 30-year fixed-refinance rate is 6.54 percent, down 11 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.87 percent.
At the current average rate, you’ll pay $634.70 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $7.26 lower.
When will mortgage rates go down?
While 30-year mortgage rates moved down slightly in July, it’s unlikely there’ll be a meaningful drop beyond that if the economy continues its strong streak.
Forecasters expect rates to land closer to mid-6 percent by the end of 2024, according to Bankrate’s August mortgage rate outlook.
“Even if the Fed starts cutting rates this year, mortgage rates won’t get down to, or below, 6 percent unless there is a significant economic slowdown,” McBride says.
More on current mortgage rates
- Expert poll: Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
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