Rates decrease - Today's mortgage rates, August 2, 2024

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Aug 02, 2024 / 3 min read

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Average mortgage rates dropped across the board from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.77%	6.85%	-0.08
15-year fixed	6.21%	6.27%	-0.06
5/1 ARM	6.48%	6.50%	-0.02
30-year fixed jumbo	6.90%	6.97%	-0.07

Rates last updated August 2, 2024.

The rates listed above are averages based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, August 2nd, 2024 at 7:30 a.m. ET.

Market mortgage rates constantly change as the economy ebbs and flows, 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?

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, 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 slides, -0.08%

Today's average rate for the benchmark 30-year fixed mortgage is 6.77 percent, down 8 basis points since the same time last week. Last month on the 2nd, the average rate on a 30-year fixed mortgage was higher, at 7.08 percent.

At the current average rate, you'll pay principal and interest of $649.93 for every $100,000 you borrow. That represents a decline of $5.33 over what it would have been last week.

Learn more about 30-year mortgage rates, and compare to a variety of other loan types.

15-year mortgage rate declines, -0.06%

The average rate for the benchmark 15-year fixed mortgage is 6.21 percent, down 6 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $855 per $100,000 borrowed.

5/1 ARM rate declines, -0.02%

The average rate on a 5/1 adjustable rate mortgage is 6.48 percent, ticking down 2 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.48 percent would cost about $631 for each $100,000 borrowed over the initial five years.

Jumbo mortgage dips, -0.07%

The current average rate you'll pay for jumbo mortgages is 6.90 percent, a decrease of 7 basis points from a week ago. Last month on the 2nd, the average rate was greater than 6.90 at 7.16 percent.

At the average rate today for a jumbo loan, you'll pay principal and interest of $658.60 for every $100,000 you borrow. That's lower by $4.69 than it would have been last week.

30-year fixed-rate refinance falls, -0.08%

The average 30-year fixed-refinance rate is 6.78 percent, down 8 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.09 percent.

At the current average rate, you'll pay $650.59 per month in principal and interest for every $100,000 you borrow. That's lower by $5.34 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.

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.