National mortgage rates were down on all loan terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all fell.
| Mortgage type | Today’s rate | Last week’s rate | Change |
|---|---|---|---|
| 30-year fixed | 6.54% | 6.57% | -0.03 |
| 15-year fixed | 5.97% | 5.99% | -0.02 |
| 5/1 ARM | 6.11% | 6.20% | -0.09 |
| 30-year fixed jumbo | 6.66% | 6.73% | -0.07 |
Rates as of August 21, 2024.
The rates listed here are marketplace 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 Wednesday, August 21st, 2024 at 7:30 a.m. ET.
Market mortgage rates fluctuate as the economy evolves , 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?
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.
30-year mortgage rate slides, -0.03%
Today’s average rate for the benchmark 30-year fixed mortgage is 6.54 percent, down 3 basis points from a week ago. Last month on the 21st, the average rate on a 30-year fixed mortgage was higher, at 6.86 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 down $1.98 from what it would have been last week.
15-year mortgage rate dips, -0.02%
The average rate for the benchmark 15-year fixed mortgage is 5.97 percent, down 2 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $842 per $100,000 borrowed.
5/1 adjustable rate mortgage slides, -0.09%
The average rate on a 5/1 adjustable rate mortgage is 6.11 percent, ticking down 9 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 6.11 percent would cost about $607 for each $100,000 borrowed over the initial five years.
Jumbo mortgage declines, -0.07%
The current average rate you’ll pay for jumbo mortgages is 6.66 percent, down 7 basis points over the last seven days. Last month on the 21st, the average rate for jumbo mortgages was above that at 6.97 percent.
At today’s average jumbo rate, you’ll pay $642.63 per month in principal and interest for every $100,000 you borrow. That’s down $4.64 from what it would have been last week.
30-year mortgage refinance eases, -0.04%
The average 30-year fixed-refinance rate is 6.51 percent, down 4 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.90 percent.
At the current average rate, you’ll pay $632.73 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $2.63 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
- 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.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
