Rates decrease as inflation slows | Current mortgage rates, September 12, 2024

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Sep 12, 2024 / 3 min read

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Mortgage rates dropped across all terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all moved lower.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.27%	6.43%	-0.16
15-year fixed	5.53%	5.78%	-0.25
5/1 ARM	5.79%	5.88%	-0.09
30-year fixed jumbo	6.37%	6.53%	-0.16

Rates as of September 12, 2024.

The rates listed here are Bankrate's overnight average rates and are 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 Thursday, September 12th, 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?

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 fixed-rate mortgage retreats, -0.16%

Today's average 30-year fixed-mortgage rate is 6.27 percent, a decrease of 16 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.56 percent.

At the current average rate, you'll pay a combined $617.02 per month in principal and interest for every $100,000 you borrow. That's down $10.45 from what it would have been last week.

15-year mortgage rate trends down, -0.25%

The average 15-year fixed-mortgage rate is 5.53 percent, down 25 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $819 per $100,000 borrowed.

5/1 adjustable rate mortgage trends down, -0.09%

The average rate on a 5/1 ARM is 5.79 percent, ticking down 9 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 5.79 percent would cost about $586 for each $100,000 borrowed over the initial five years.

Jumbo mortgage rate retreats, -0.16%

The average jumbo mortgage rate today is 6.37 percent, a decrease of 16 basis points over the last seven days. Last month on the 12th, the average rate for jumbo mortgages was higher at 6.70 percent.

At today's average jumbo rate, you'll pay a combined $623.54 per month in principal and interest for every $100,000 you borrow. That's $10.50 lower, compared with last week.

30-year mortgage refinance rate declines, -0.14%

The average 30-year fixed-refinance rate is 6.30 percent, down 14 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.54 percent.

At the current average rate, you'll pay $618.97 per month in principal and interest for every $100,000 you borrow. That's a decline of $9.16 from 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 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.