Average mortgage rates sunk across the board compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.
| Mortgage type | Today’s rate | Last week’s rate | Change |
|---|---|---|---|
| 30-year fixed | 6.51% | 6.75% | -0.24 |
| 15-year fixed | 5.91% | 6.19% | -0.28 |
| 5/1 ARM | 6.14% | 6.38% | -0.24 |
| 30-year fixed jumbo | 6.70% | 6.89% | -0.19 |
Rates as of August 12, 2024.
The rates listed above are averages based on the assumptions indicated here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, August 12th, 2024 at 7:30 a.m. ET.
Market mortgage rates shift up and down as the economy changes, 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, 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.
Current 30 year mortgage rate moves lower, -0.24%
Today’s average 30-year fixed-mortgage rate is 6.51 percent, a decrease of 24 basis points over the last week. Last month on the 12th, the average rate on a 30-year fixed mortgage was higher, at 6.92 percent.
At the current average rate, you’ll pay principal and interest of $632.73 for every $100,000 you borrow. That’s lower by $15.87 than it would have been last week.
15-year mortgage rate moves lower, -0.28%
The average 15-year fixed-mortgage rate is 5.91 percent, down 28 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $839 per $100,000 borrowed.
5/1 adjustable rate mortgage falls, -0.24%
The average rate on a 5/1 ARM is 6.14 percent, down 24 basis points since the same time last week.
Monthly payments on a 5/1 ARM at 6.14 percent would cost about $609 for each $100,000 borrowed over the initial five years.
Jumbo mortgage interest rate trends down, -0.19%
The current average rate you’ll pay for jumbo mortgages is 6.70 percent, down 19 basis points over the last seven days. A month ago, the average rate was above that at 7.04 percent.
At the current average rate, you’ll pay $645.28 per month in principal and interest for every $100,000 you borrow. That’s down $12.65 from what it would have been last week.
Today’s 30-year mortgage refinance rate falls, -0.24%
The average 30-year fixed-refinance rate is 6.52 percent, down 24 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 6.91 percent.
At the current average rate, you’ll pay $633.38 per month in principal and interest for every $100,000 you borrow. That’s down $15.88 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
- The latest mortgage news for this week
- Compare current mortgage rates for today
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.
