30-year rates drop below 6.5% - Mortgage rates for August 29, 2024

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Aug 29, 2024 / 4 min read

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Mortgage rates were mostly down compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo mortgages declined, while rates for adjustable rate mortgages increased.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.43%	6.52%	-0.09
15-year fixed	5.83%	5.88%	-0.05
5/1 ARM	5.96%	5.95%	+0.01
30-year fixed jumbo	6.53%	6.62%	-0.09

Rates accurate as of August 29, 2024.

These rates are averages based on the assumptions shown here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, August 29th, 2024 at 7:30 a.m. ET.

Market mortgage rates fluctuate as the economy evolves, 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?

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, 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 fixed-rate mortgage dips, -0.09%

The average rate for a 30-year fixed mortgage for today is 6.43 percent, down 9 basis points over the last seven days. Last month on the 29th, the average rate on a 30-year fixed mortgage was higher, at 6.77 percent.

At the current average rate, you'll pay $627.47 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $5.91 lower.

The 30-year mortgage is the most popular home loan, and it has a number of advantages. Among them:

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 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 building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

15-year mortgage rate moves lower, -0.05%

The average rate for a 15-year fixed mortgage is 5.83 percent, down 5 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $835 per $100,000 borrowed.

5/1 ARM rate trends higher, +0.01%

The average rate on a 5/1 ARM is 5.96 percent, climbing 1 basis point since the same time last week.

Monthly payments on a 5/1 ARM at 5.96 percent would cost about $597 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate trends down, -0.09%

The current average rate you'll pay for jumbo mortgages is 6.53 percent, a decrease of 9 basis points from a week ago. Last month on the 29th, the average rate for jumbo mortgages was above that at 6.90 percent.

At the current average rate, you'll pay $634.04 per month in principal and interest for every $100,000 you borrow. That's down $5.94 from what it would have been last week.

30-year mortgage refinance rate dips, -0.10%

The average 30-year fixed-refinance rate is 6.42 percent, down 10 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.78 percent.

At the current average rate, you'll pay $626.82 per month in principal and interest for every $100,000 you borrow. That's $6.56 lower, compared with last week.

When will mortgage rates go down?

With the Federal Reserve all but guaranteed to begin cutting rates in September, there’s room for mortgage rates to fall more in the coming months and into 2025.

“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.