Rates down | Current mortgage rates, August 26, 2024

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Aug 26, 2024 / 4 min read

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Average mortgage rates came down across all terms compared to 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	6.51%	6.56%	-0.05
15-year fixed	5.91%	5.95%	-0.04
5/1 ARM	6.05%	6.15%	-0.10
30-year fixed jumbo	6.63%	6.69%	-0.06

Rates last updated August 26, 2024.

The rates listed above are averages based on the assumptions shown here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, August 26th, 2024 at 7:30 a.m. ET.

Market mortgage rates constantly change as the economy ebbs and flows, policymakers and investors digest new data 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?

Mortgage rates tumbled in August after a weaker jobs report spooked investors and fueled further expectation for a Federal Reserve rate cut in September. That expectation still stands.

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 rate dips, -0.05%

The average rate for a 30-year fixed mortgage for today is 6.51 percent, down 5 basis points since the same time last week. Last month on the 26th, the average rate on a 30-year fixed mortgage was higher, at 6.88 percent.

At the current average rate, you'll pay a combined $632.73 per month in principal and interest for every $100,000 you borrow. That represents a decline of $3.29 over what it would have been last week.

There are various advantages to choosing a fixed-rate mortgage , including predictable mortgage payments.

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

15-year mortgage rate retreats, -0.04%

The average rate you'll pay for a 15-year fixed mortgage is 5.91 percent, down 4 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $839 per $100,000 borrowed.

5/1 adjustable rate mortgage eases, -0.10%

The average rate on a 5/1 adjustable rate mortgage is 6.05 percent, ticking down 10 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.05 percent would cost about $603 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate eases, -0.06%

The average rate for the benchmark jumbo mortgage is 6.63 percent, a decrease of 6 basis points since the same time last week. A month ago, jumbo mortgages' average rate was higher at 6.98 percent.

At the average rate today for a jumbo loan, you'll pay a combined $640.64 per month in principal and interest for every $100,000 you borrow. That represents a decline of $3.97 over what it would have been last week.

Today's 30-year mortgage refinance rate dips, -0.05%

The average 30-year fixed-refinance rate is 6.49 percent, down 5 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.85 percent.

At the current average rate, you'll pay $631.41 per month in principal and interest for every $100,000 you borrow. That's down $3.29 from what it would have been last week.

When will mortgage rates go down?

With the widely-expected Fed cut in September, there’s room for mortgage rates to fall more for the remainder of this year and into next year.

“The expectation is that the Federal Reserve will be cutting interest rates multiple times over the next year or two, so a consistent downtrend in mortgage rates well into next year is a reasonable assumption,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The sudden drop in rates in August spurred some homeowners to refinance, but that was short-lived. Homebuyers and homeowners largely plan to hold out for even lower rates, according to Bankrate’s recent Mortgage Rates Survey, which found that 47 percent of homeowners would need rates under 5 percent to feel comfortable buying a home in 2024.

For homeowners wondering whether to refinance, “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.

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.