Most rates rise - Mortgage rates for today, October 18, 2024

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Oct 18, 2024 / 4 min read

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Mortgage interest rates were mostly higher compared to a week ago, according to Bankrate data. The rates for 15-year fixed, 5/1 ARMs, and jumbo loans moved higher, while 30-year fixed rates fell.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.55%	6.56%	-0.01
15-year fixed	5.83%	5.81%	+0.02
5/1 ARM	6.13%	6.07%	+0.06
30-year fixed jumbo	6.66%	6.62%	+0.04

Rates accurate as of October 18, 2024.

These rates are averages based on the assumptions shown here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, October 18th, 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.

That includes Federal Reserve decisions. In mid-September, the central bank cut interest rates by a half-point, the first such move since the pandemic. The consensus for now is that the Fed could cut rates one or two more times before the end of the year.

Historical mortgage rates: How do today’s rates compare to years past?

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, the Fed, inflation and yields shouldn’t necessarily drive your decision to buy or sell a home. There’s no surefire way to time the housing market, either. If you’re financially ready to move, check mortgage rates regularly to help find the lowest-cost lender.

30-year mortgage trends down, -0.01%

The average rate for a 30-year fixed mortgage for today is 6.55 percent, a decrease of 1 basis point from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.17 percent.

At the current average rate, you'll pay a combined $635.36 per month in principal and interest for every $100,000 you borrow. That's a decline of $0.66 from last week.

There are several benefits to choosing a fixed-rate mortgage , including predictable mortgage payments.

15-year mortgage rate rises, +0.02%

The average 15-year fixed-mortgage rate is 5.83 percent, up 2 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $835 per $100,000 borrowed.

5/1 ARM rate trends higher, +0.06%

The average rate on a 5/1 ARM is 6.13 percent, up 6 basis points from a week ago.

Monthly payments on a 5/1 ARM at 6.13 percent would cost about $608 for each $100,000 borrowed over the initial five years.

Current jumbo mortgage rate advances, +0.04%

The average rate for the benchmark jumbo mortgage is 6.66 percent, up 4 basis points over the last week. A month ago, jumbo mortgages' average rate was lesser at 6.35 percent.

At the current average rate, you'll pay a combined $642.63 per month in principal and interest for every $100,000 you borrow. That's an extra $2.65 compared with last week.

30-year mortgage refinance trends down, -0.02%

The average 30-year fixed-refinance rate is 6.54 percent, down 2 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 6.15 percent.

At the current average rate, you'll pay $634.70 per month in principal and interest for every $100,000 you borrow. That represents a decline of $1.32 over what it would have been last week.

When will mortgage rates go down?

With the Fed now making cuts, mortgage rates could continue to fall through the end of 2024 and into 2025. There might be some bouncing around, however. Recently, rates have trended slightly upward.

“In the words of Jerome Powell, the Fed is ‘recalibrating’ interest rates. Markets are recalibrating too, to reflect the fact that interest rates won’t come down as quickly as had been previously expected.” says Greg McBride, CFA, chief financial analyst for Bankrate.

Still, housing sentiment is on the rise. In September, Fannie Mae’s Home Purchase Sentiment Index rose to its highest level in over two years. A full 65 percent of respondents to Fannie’s survey said now is a good time to sell a home, and a record 42 percent said they expect mortgage rates to retreat in the coming year.

Lower rates have also caused some homeowners to refinance, with more potentially to follow. Nearly 3 million outstanding mortgages have a rate at or above 6.75 percent, according to CoreLogic. Refinancing could make sense for these borrowers as rates retreat.

“The time to start thinking about it is when you can shave one-half to three-quarters of a percentage point off your rate,” McBride says.

For purchase loans, many are still holding out for lower rates, according to Bankrate’s Mortgage Rates Survey, which found that 47 percent of homeowners would need rates under 5 percent to feel comfortable buying a home in 2024.

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.