Majority of rates decrease | Today’s mortgage rates for August 20, 2024

Mortgage interest rates were mostly lower compared to a week ago, according to Bankrate data. Average rates for 30-year fixed, 5/1 ARMs and jumbo loans receded, while rates for 15-year home loans increased.

Rates as of August 20, 2024.

The rates listed above are Bankrate’s overnight average rates and are based on the assumptions here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, August 20th, 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?

In mid-July, the average rate on a 30-year fixed mortgage slipped under 7 percent thanks to better inflation numbers in June. 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 eases, -0.01%

Today’s average rate for the benchmark 30-year fixed mortgage is 6.58 percent, a decrease of 1 basis point from a week ago. Last month on the 20th, the average rate on a 30-year fixed mortgage was higher, at 6.87 percent.

At the current average rate, you’ll pay a combined $637.34 per month in principal and interest for every $100,000 you borrow. That represents a decline of $0.66 over what it would have been last week.

The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages:

• Lower monthly payment: Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
• Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
• Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
• Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

Read more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate advances, +0.02%

The average rate you’ll pay for a 15-year fixed mortgage is 6.01 percent, up 2 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $844 per $100,000 borrowed.

5/1 ARM retreats, -0.10%

The average rate on a 5/1 adjustable rate mortgage is 6.23 percent, falling 10 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.23 percent would cost about $614 for each $100,000 borrowed over the initial five years.

Jumbo mortgage rate moves down, -0.05%

The average jumbo mortgage rate is 6.76 percent, a decrease of 5 basis points since the same time last week. Last month on the 20th, the average rate for jumbo mortgages was above that at 6.99 percent.

At the current average rate, you’ll pay principal and interest of $649.26 for every $100,000 you borrow. That represents a decline of $3.33 over what it would have been last week.

Current 30 year mortgage refinance rate moves down, -0.01%

The average 30-year fixed-refinance rate is 6.53 percent, down 1 basis point from a week ago. 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 $634.04 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $0.66 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
• The latest mortgage news for this week
• Compare 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.