Rates go down | Current mortgage rates, September 20, 2024

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Sep 20, 2024 / 4 min read

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Mortgage rates were down 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 fell.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.16%	6.32%	-0.16
15-year fixed	5.38%	5.57%	-0.19
5/1 ARM	5.83%	5.92%	-0.09
30-year fixed jumbo	6.35%	6.42%	-0.07

Rates last updated September 20, 2024.

These rates are averages based on the assumptions indicated 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, September 20th, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, 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 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, dipping below 6.5 percent 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, 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 moves lower, -0.16%

The average rate you'll pay for a 30-year fixed mortgage today is 6.16 percent, a decrease of 16 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.51 percent.

At the current average rate, you'll pay principal and interest of $609.88 for every $100,000 you borrow. That's a decline of $10.40 from last week.

The 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages:

Lower monthly payment: Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

15-year mortgage rate retreats, -0.19%

The average rate for a 15-year fixed mortgage is 5.38 percent, down 19 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $811 per $100,000 borrowed.

5/1 ARM trends down, -0.09%

The average rate on a 5/1 adjustable rate mortgage is 5.83 percent, falling 9 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 5.83 percent would cost about $589 for each $100,000 borrowed over the initial five years.

Current jumbo mortgage rate dips, -0.07%

The average jumbo mortgage rate today is 6.35 percent, down 7 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was above that at 6.63 percent.

At the current average rate, you'll pay principal and interest of $622.24 for every $100,000 you borrow. That's a decline of $4.58 from last week.

Current 30 year mortgage refinance rate trends down, -0.23%

The average 30-year fixed-refinance rate is 6.12 percent, down 23 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.49 percent.

At the current average rate, you'll pay $607.29 per month in principal and interest for every $100,000 you borrow. That's $14.95 lower, 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. If rates fall more, refinancing could become more viable for these 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.