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 dropped.
| Loan type | Today’s rate | Last week’s rate | Change |
|---|---|---|---|
| 30-year fixed | 6.49% | 6.56% | -0.07 |
| 15-year fixed | 5.84% | 5.90% | -0.06 |
| 5/1 ARM | 6.09% | 6.21% | -0.12 |
| 30-year fixed jumbo | 6.66% | 6.70% | -0.04 |
Rates last updated August 23, 2024.
The rates listed above are marketplace averages based on the assumptions shown here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, August 23rd, 2024 at 7:30 a.m. ET.
Market mortgage rates fluctuate as the economy evolves , new data comes in 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, 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.
30-year mortgage rate eases, -0.07%
Today’s average rate for the benchmark 30-year fixed mortgage is 6.49 percent, a decrease of 7 basis points over the last week. Last month on the 23rd, the average rate on a 30-year fixed mortgage was higher, at 6.86 percent.
At the current average rate, you’ll pay $631.41 per month in principal and interest for every $100,000 you borrow. That’s $4.61 lower, compared with last week.
Standard lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home as it allows the borrower to spread payments out over 30 years, keeping their monthly payment lower.
15-year mortgage rate moves lower, -0.06%
The average rate for the benchmark 15-year fixed mortgage is 5.84 percent, down 6 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $835 per $100,000 borrowed.
5/1 adjustable rate mortgage moves lower, -0.12%
The average rate on a 5/1 adjustable rate mortgage is 6.09 percent, down 12 basis points since the same time last week.
Monthly payments on a 5/1 ARM at 6.09 percent would cost about $605 for each $100,000 borrowed over the initial five years.
Jumbo loan interest rate dips, -0.04%
The average rate you’ll pay for a jumbo mortgage is 6.66 percent, a decrease of 4 basis points over the last week. A month ago, the average rate was above that at 6.96 percent.
At today’s average rate, you’ll pay principal and interest of $642.63 for every $100,000 you borrow. That’s down $2.65 from what it would have been last week.
Current 30 year mortgage refinance rate moves lower, -0.09%
The average 30-year fixed-refinance rate is 6.45 percent, down 9 basis points over the last week. 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 $628.78 per month in principal and interest for every $100,000 you borrow. That’s down $5.92 from what it would have been 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
- Expert poll: Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare today’s 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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