30-year mortgage rate drops | Mortgage rates, July 19th, 2024

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Jul 19, 2024 / 4 min read

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Average mortgage rates came down 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 dropped.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.82%	6.94%	-0.12
15-year fixed	6.23%	6.41%	-0.18
5/1 ARM	6.51%	6.59%	-0.08
30-year fixed jumbo	6.93%	7.04%	-0.11

Rates last updated July 19, 2024.

These rates are Bankrate's overnight average rates and are based on the assumptions shown here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, July 19th, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, 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?

Thirty-year fixed mortgage rates have been waffling at the 7 percent mark primarily 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.

Current 30 year mortgage rate slides, -0.12%

The average rate for a 30-year fixed mortgage for today is 6.82 percent, down 12 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.95 percent.

At the current average rate, you'll pay $653.26 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $8.02 lower.

While the 30-year rate is the most popular mortgage term, as with any financial product, the 30-year fixed-rate mortgage also has some downsides:

More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would with a shorter-term loan.
Higher mortgage rates. Lenders charge higher interest rates for 30-year mortgages compared to 15-year loans. That's because they're taking on the risk of not being repaid for a longer time span.
Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
Buying more house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

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

15-year mortgage rate falls, -0.18%

The average rate you'll pay for a 15-year fixed mortgage is 6.23 percent, down 18 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $856 per $100,000 borrowed.

5/1 ARM rate trends down, -0.08%

The average rate on a 5/1 ARM is 6.51 percent, sliding 8 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.51 percent would cost about $633 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate dips, -0.11%

Today's average rate for jumbo mortgages is 6.93 percent, down 11 basis points over the last seven days. Last month on the 19th, jumbo mortgages' average rate was above that at 7.05 percent.

At the current average rate, you'll pay $660.61 per month in principal and interest for every $100,000 you borrow. That's lower by $7.38 than it would have been last week.

30-year fixed-rate refinance eases, -0.16%

The average 30-year fixed-refinance rate is 6.78 percent, down 16 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.94 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 down $10.69 from 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.