Rates increase | Current mortgage rates, October 4, 2024

Written by

Oct 04, 2024 / 4 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 .

Mortgage interest rates edged higher for all types of loans compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.23%	6.22%	+0.01
15-year fixed	5.48%	5.38%	+0.10
5/1 ARM	5.89%	5.80%	+0.09
30-year fixed jumbo	6.41%	6.35%	+0.06

Rates as of October 4, 2024.

These rates are averages based on the assumptions here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, October 4th, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, policymakers and investors digest new data 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 Fed projected that another rate cut might still come this year, depending on economic data.

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

Mortgage rates have continued their fall into September, crossing below the 6.5 percent mark as of Sept. 11. Slower inflation and weaker jobs numbers make it almost certain the Fed will cut rates at its next meeting on Sept. 18.

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, your housing needs might change regardless of the Fed, inflation and yields. If you want to buy a home or need to sell now, shop around to find the lowest-possible rate.

30-year mortgage advances, +0.01%

The average rate for a 30-year fixed mortgage for today is 6.23 percent, an increase of 1 basis point over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.37 percent.

At the current average rate, you'll pay $614.42 per month in principal and interest for every $100,000 you borrow. That's an additional $0.65 per $100,000 compared to last week.

While the 30-year rate is the most popular mortgage term, the 30-year 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 retirement of the loan amount.
Buying a pricier 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.

15-year mortgage rate climbs, +0.10%

The average rate for the benchmark 15-year fixed mortgage is 5.48 percent, up 10 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $816 per $100,000 borrowed.

5/1 adjustable rate mortgage moves up, +0.09%

The average rate on a 5/1 ARM is 5.89 percent, ticking up 9 basis points from a week ago.

Monthly payments on a 5/1 ARM at 5.89 percent would cost about $593 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate climbs, +0.06%

Today's average rate for jumbo mortgages is 6.41 percent, an increase of 6 basis points from a week ago. This time a month ago, the average rate for jumbo mortgages was higher at 6.51 percent.

At today's average jumbo rate, you'll pay a combined $626.16 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $3.92 higher.

Today's 30-year mortgage refinance rate moves upward, +0.02%

The average 30-year fixed-refinance rate is 6.21 percent, up 2 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.37 percent.

At the current average rate, you'll pay $613.12 per month in principal and interest for every $100,000 you borrow. That's $1.30 higher compared with last week.

When will mortgage rates go down?

With the Fed now cutting rates, mortgage rates could continue to fall some through the end of 2024 and into 2025.

“The Fed cuts rates by half a percentage point right out of the gate and the Summary of Economic Projections saw expectations of higher unemployment and lower inflation than was forecast just three months ago. This will sustain the downward momentum in mortgage rates,” says Greg McBride, CFA, chief financial analyst for Bankrate.

Lower rates have already caused some homeowners to refinance, but more could be making the choice to refi if rates drop further. Nearly 3 million outstanding mortgages have a rate at or above 6.75 percent, according to a CoreLogic. As rates decline, refinancing could become an option for more borrowers.

“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.