30 and 15-year rates fall

Average mortgage rates fell 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 moved lower.

Rates accurate as of August 6, 2024.

The rates listed here are averages based on the assumptions shown here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, August 6th, 2024 at 7:30 a.m. ET.

Market mortgage rates fluctuate as the economy evolves , 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, 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 fixed-rate mortgage trends down, -0.19%

The average rate for a 30-year fixed mortgage for today is 6.69 percent, down 19 basis points since the same time last week. Last month on the 6th, the average rate on a 30-year fixed mortgage was higher, at 6.98 percent.

At the current average rate, you’ll pay $644.61 per month in principal and interest for every $100,000 you borrow. That’s a decline of $12.65 from last week.

15-year mortgage rate drops, -0.19%

The average rate you’ll pay for a 15-year fixed mortgage is 6.14 percent, down 19 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $851 per $100,000 borrowed.

5/1 ARM rate moves down, -0.19%

The average rate on a 5/1 adjustable rate mortgage is 6.37 percent, ticking down 19 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.37 percent would cost about $624 for each $100,000 borrowed over the initial five years.

Jumbo mortgage rate slides, -0.10%

The average rate for a jumbo mortgage is 6.88 percent, down 10 basis points over the last week. This time a month ago, the average rate was above that at 7.08 percent.

At today’s average rate, you’ll pay a combined $657.26 per month in principal and interest for every $100,000 you borrow. That’s down $6.70 from what it would have been last week.

30-year mortgage refinance rate retreats, -0.20%

The average 30-year fixed-refinance rate is 6.65 percent, down 20 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.98 percent.

At the current average rate, you’ll pay $641.96 per month in principal and interest for every $100,000 you borrow. That represents a decline of $13.30 over 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

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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