Rates remain elevated as Fed looks to cut this fall - Mortgage rates, July 29, 2024

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Jul 29, 2024 / 4 min read

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Mortgage interest rates moved in different directions compared to last week, according to Bankrate data. See below for a breakdown of how each loan type moved.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.86%	6.85%	+0.01
15-year fixed	6.29%	6.29%	N/C
5/1 ARM	6.43%	6.43%	N/C
30-year fixed jumbo	6.96%	6.94%	+0.02

Rates as of July 29, 2024.

The rates listed above are Bankrate's overnight average rates and are based on the assumptions here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, July 29th, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, new data comes in 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?

In mid-July, the average rate on a 30-year fixed mortgage slipped under 7 percent thanks to better inflation numbers in June. 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 likely to continue when the central bank meets this week. As of now, market watchers expect the Fed to start cutting rates in September.

“Inflation pressures are easing and we’re getting closer to Fed interest rate cuts,” says Greg McBride, CFA, chief financial analyst for Bankrate.

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 rate rises, +0.01%

The average rate you'll pay for a 30-year fixed mortgage today is 6.86 percent, an increase of 1 basis point since the same time last week. 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 $655.93 per month in principal and interest for every $100,000 you borrow. That's an additional $0.67 per $100,000 compared to last week.

The popular 30-year mortgage 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 change if your homeowners insurance premiums and property taxes go up or, less likely, down.
Buying power: Because you have lower payments, you might qualify for a bigger loan or a more expensive house.
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 goes unchanged

The average rate for a 15-year fixed mortgage is 6.29 percent, unchanged over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $860 per $100,000 borrowed.

5/1 ARM rate flat for the week

The average rate on a 5/1 ARM is 6.43 percent, unchanged from a week ago.

Monthly payments on a 5/1 ARM at 6.43 percent would cost about $627 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate increases, +0.02%

Today's average rate for jumbo mortgages is 6.96 percent, an increase of 2 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was greater than 6.96 at 7.15 percent.

At today's average jumbo rate, you'll pay a combined $662.62 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $1.34 higher.

Current 30 year mortgage refinance rate moves upward, +0.04%

The average 30-year fixed-refinance rate is 6.88 percent, up 4 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.06 percent.

At the current average rate, you'll pay $657.26 per month in principal and interest for every $100,000 you borrow. That's an increase of $2.67 over what you would have paid last week.

When will mortgage rates go down?

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

“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.