Rates decrease - Mortgage rates for today, July 18th, 2024

Written by

Jul 18, 2024 / 3 min read

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Average mortgage rates sunk 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 dropped.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.83%	6.97%	-0.14
15-year fixed	6.31%	6.44%	-0.13
5/1 ARM	6.29%	6.38%	-0.09
30-year fixed jumbo	6.89%	7.06%	-0.17

Rates accurate as of July 18, 2024.

These rates are marketplace averages based on the assumptions indicated here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, July 18th, 2024 at 7:30 a.m. ET.

Market mortgage rates constantly change as the economy ebbs and flows, 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?

Thirty-year fixed mortgage rates haven't budged from the 7 percent range thanks mainly to inflation, which has run hotter than the Federal Reserve’s 2 percent target for some time now. Those higher prices have prompted the Fed to keep the federal funds rate elevated.

“Inflation data will be the catalyst for movement in mortgage rates this summer,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The Fed’s rate doesn’t outright determine fixed mortgage rates, however. Rather, they 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.

Current 30 year mortgage rate trends down, -0.14%

Today's average rate for the benchmark 30-year fixed mortgage is 6.83 percent, a decrease of 14 basis points from a week ago. Last month on the 18th, the average rate on a 30-year fixed mortgage was higher, at 6.92 percent.

At the current average rate, you'll pay principal and interest of $653.92 for every $100,000 you borrow. That represents a decline of $9.37 over what it would have been last week.

There are many 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 dips, -0.13%

The average 15-year fixed-mortgage rate is 6.31 percent, down 13 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost $861 per $100,000 borrowed.

5/1 ARM retreats, -0.09%

The average rate on a 5/1 adjustable rate mortgage is 6.29 percent, ticking down 9 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.29 percent would cost about $618 for each $100,000 borrowed over the initial five years.

Jumbo mortgage rate moves down, -0.17%

The average jumbo mortgage rate is 6.89 percent, a decrease of 17 basis points since the same time last week. This time a month ago, the average rate for jumbo mortgages was above that at 7.02 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 $11.41 from what it would have been last week.

Today's 30-year mortgage refinance rate dips, -0.14%

The average 30-year fixed-refinance rate is 6.85 percent, down 14 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.93 percent.

At the current average rate, you'll pay $655.26 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $9.37 lower.

When will mortgage rates go down?

Thirty-year mortgage rates could slip under 7 percent by end of year, according to Bankrate’s July 2024 forecast.

There won’t be a meaningful drop beyond that, however, 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.