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Mortgage interest rates moved in different directions compared to last week, according to Bankrate data. Rates for 30-year fixed and ARM loans increased, while 15-year fixed and jumbo loan rates decreased.
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.57% | 6.56% | +0.01 |
| 15-year fixed | 5.99% | 6.00% | -0.01 |
| 5/1 ARM | 6.20% | 6.18% | +0.02 |
| 30-year fixed jumbo | 6.73% | 6.75% | -0.02 |
Rates last updated August 14, 2024.
The rates listed above 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 Wednesday, August 14th, 2024 at 7:30 a.m. ET.
Market mortgage rates constantly change as the economy ebbs and flows, 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?
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, 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 climbs, +0.01%
Today's average rate for the benchmark 30-year fixed mortgage is 6.57 percent, an increase of 1 basis point over the last seven days. Last month on the 14th, the average rate on a 30-year fixed mortgage was higher, at 6.83 percent.
At the current average rate, you'll pay principal and interest of $636.68 for every $100,000 you borrow. Compared to last week, that's $0.66 higher.
The popular 30-year mortgage 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 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 amount or a more expensive home.
- Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
15-year mortgage rate eases, -0.01%
The average 15-year fixed-mortgage rate is 5.99 percent, down 1 basis point from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost $843 per $100,000 borrowed.
5/1 ARM trends upward, +0.02%
The average rate on a 5/1 ARM is 6.20 percent, climbing 2 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 6.20 percent would cost about $612 for each $100,000 borrowed over the initial five years.
Jumbo loan interest rate moves down, -0.02%
The average rate for a 30-year jumbo mortgage is 6.73 percent, down 2 basis points from a week ago. Last month on the 14th, jumbo mortgages' average rate was higher at 6.89 percent.
At today's average jumbo rate, you'll pay principal and interest of $647.27 for every $100,000 you borrow. That's down $1.33 from what it would have been last week.
Today's 30-year mortgage refinance rate moves lower, -0.03%
The average 30-year fixed-refinance rate is 6.55 percent, down 3 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 6.85 percent.
At the current average rate, you'll pay $635.36 per month in principal and interest for every $100,000 you borrow. That's lower by $1.98 than 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 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.
