Rates dip as inflation cools - Today's mortgage rates for July 12th, 2024

Written by

Jul 12, 2024 / 3 min read

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Average mortgage rates were mostly lower compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo loans each decreased, while rates for ARM loans rose.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.94%	7.08%	-0.14
15-year fixed	6.41%	6.53%	-0.12
5/1 ARM	6.59%	6.52%	+0.07
30-year fixed jumbo	7.04%	7.14%	-0.10

Rates last updated July 12, 2024.

The rates listed above are marketplace averages based on the assumptions shown here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, July 12th, 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?

Thirty-year fixed mortgage rates remain around 7 percent mostly due to inflation, which has run hotter than the Federal Reserve’s 2 percent target for some time now. Those higher prices have prompted the Fed to keep the federal funds rate elevated.

“Inflation data will be the catalyst for movement in mortgage rates this summer,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The Fed’s rate doesn’t outright determine fixed mortgage rates, however. Rather, they 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 rate falls, -0.14%

The average rate you'll pay for a 30-year fixed mortgage today is 6.94 percent, down 14 basis points from a week ago. Last month on the 12th, the average rate on a 30-year fixed mortgage was higher, at 7.01 percent.

At the current average rate, you'll pay $661.28 per month in principal and interest for every $100,000 you borrow. That's $9.40 lower, compared with last week.

15-year mortgage rate declines, -0.12%

The average rate you'll pay for a 15-year fixed mortgage is 6.41 percent, down 12 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $866 per $100,000 borrowed.

5/1 ARM rate moves up, +0.07%

The average rate on a 5/1 ARM is 6.59 percent, rising 7 basis points over the last week.

Monthly payments on a 5/1 ARM at 6.59 percent would cost about $638 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate retreats, -0.10%

The average rate you'll pay for a jumbo mortgage is 7.04 percent, a decrease of 10 basis points since the same time last week. Last month on the 12th, jumbo mortgages' average rate was greater than 7.04 at 7.15 percent.

At today's average rate, you'll pay principal and interest of $667.99 for every $100,000 you borrow. That's down $6.74 from what it would have been last week.

30-year mortgage refinance trends down, -0.17%

The average 30-year fixed-refinance rate is 6.94 percent, down 17 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.01 percent.

At the current average rate, you'll pay $661.28 per month in principal and interest for every $100,000 you borrow. That represents a decline of $11.43 over what it would have been last week.

When will mortgage rates go down?

Thirty-year mortgage rates could slip under 7 percent by end of year, according to Bankrate’s July 2024 forecast.

There won’t be a meaningful drop beyond that, however, if the economy continues its strong streak.

“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.