Rates down - Current mortgage rates, August 5, 2024

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Aug 05, 2024 / 4 min read

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Mortgage rates fell across the board compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.75%	6.86%	-0.11
15-year fixed	6.19%	6.29%	-0.10
5/1 ARM	6.38%	6.43%	-0.05
30-year fixed jumbo	6.89%	6.96%	-0.07

Rates accurate as of August 5, 2024.

The rates listed here are averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, August 5th, 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.

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

The average rate on a 30-year fixed mortgage retreated under 7 percent in July --- a first since February --- thanks to a brighter June inflation report. Inflation has run hotter than the Federal Reserve’s 2 percent target for some time now, prompting the Fed to keep its benchmark rate elevated — a policy the central bank held firm on at its July meeting. As of now, market watchers expect the Fed to start cutting rates in September.

“The Fed's statement [in July] seems to imply the probability of rate decrease in September has increased due to a weakening — but still strong — labor market and progress on inflation,” says Allison Kaminaga, lecturer of Mathematics and Economics at Bryant University.

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 rate slides, -0.11%

Today's average rate for the benchmark 30-year fixed mortgage is 6.75 percent, down 11 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.07 percent.

At the current average rate, you'll pay principal and interest of $648.60 for every $100,000 you borrow. That's lower by $7.33 than it would have been 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, such as 15 years, the 30-year mortgage offers lower, more affordable 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. Keep in mind: 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 saving for emergencies, retirement, college tuition or home repairs and maintenance.

15-year mortgage rate trends down, -0.10%

The average rate for a 15-year fixed mortgage is 6.19 percent, down 10 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $854 per $100,000 borrowed.

5/1 adjustable rate mortgage drops, -0.05%

The average rate on a 5/1 adjustable rate mortgage is 6.38 percent, ticking down 5 basis points over the last week.

Monthly payments on a 5/1 ARM at 6.38 percent would cost about $624 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate dips, -0.07%

The current average rate you'll pay for jumbo mortgages is 6.89 percent, a decrease of 7 basis points since the same time last week. Last month on the 5th, jumbo mortgages' average rate was higher at 7.23 percent.

At today's average rate, you'll pay $657.93 per month in principal and interest for every $100,000 you borrow. That's down $4.69 from what it would have been last week.

30-year mortgage refinance drops, -0.12%

The average 30-year fixed-refinance rate is 6.76 percent, down 12 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.03 percent.

At the current average rate, you'll pay $649.26 per month in principal and interest for every $100,000 you borrow. That's a decline of $8.00 from last week.

When will mortgage rates go down?

While 30-year mortgage rates moved down slightly in July, it’s unlikely there’ll be a meaningful drop beyond that if the economy continues its strong streak.

Forecasters expect rates to land closer to mid-6 percent by the end of 2024, according to Bankrate’s August mortgage rate outlook.

“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.