Average mortgage rates were mostly up compared to a week ago, according to Bankrate data. Average rates for 30-year fixed, 15-year fixed and ARMs increased, while rates for jumbo mortgages declined.
| Mortgage type | Today’s rate | Last week’s rate | Change |
|---|---|---|---|
| 30-year fixed | 6.56% | 6.51% | +0.05 |
| 15-year fixed | 5.95% | 5.91% | +0.04 |
| 5/1 ARM | 6.15% | 6.14% | +0.01 |
| 30-year fixed jumbo | 6.69% | 6.70% | -0.01 |
Rates last updated August 19, 2024.
The rates listed here are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, August 19th, 2024 at 7:30 a.m. ET.
Market mortgage rates constantly change as the economy ebbs and flows, policymakers and investors digest new data 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?
For the first time in months, the average 30-year fixed mortgage rate slid under 7 percent in July, after a promising June inflation reading. 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, the Fed, inflation and yields shouldn’t necessarily drive your decision to buy or sell a home. There’s no surefire way to time the housing market, either. If you’re financially ready to move, check mortgage rates regularly to help find the lowest-cost lender.
30-year fixed-rate mortgage goes up, +0.05%
The average rate for a 30-year fixed mortgage for today is 6.56 percent, an increase of 5 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.87 percent.
At the current average rate, you’ll pay principal and interest of $636.02 for every $100,000 you borrow. That’s an extra $3.29 compared with last week.
While the 30-year rate is the most popular mortgage term, as with any financial product, the 30-year fixed-rate mortgage also has some downsides:
- More total interest paid. A 30-year term means you’ll pay more overall in interest compared with what you’d pay with a shorter-term loan.
- Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
- Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
- Buying a more expensive house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.
- Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare current mortgage rates
Read more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate increases, +0.04%
The average 15-year fixed-mortgage rate is 5.95 percent, up 4 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $841 per $100,000 borrowed.
5/1 adjustable rate mortgage advances, +0.01%
The average rate on a 5/1 ARM is 6.15 percent, ticking up 1 basis point from a week ago.
Monthly payments on a 5/1 ARM at 6.15 percent would cost about $609 for each $100,000 borrowed over the initial five years.
Jumbo mortgage interest rate eases, -0.01%
Today’s average rate for jumbo mortgages is 6.69 percent, a decrease of 1 basis point over the last seven days. A month ago, the average rate was higher at 7.02 percent.
At the average rate today for a jumbo loan, you’ll pay $644.61 per month in principal and interest for every $100,000 you borrow. That’s lower by $0.67 than it would have been last week.
30-year fixed-rate refinance moves upward, +0.02%
The average 30-year fixed-refinance rate is 6.54 percent, up 2 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.88 percent.
At the current average rate, you’ll pay $634.70 per month in principal and interest for every $100,000 you borrow. That’s an extra $1.32 compared with last week.
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
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.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
