Rates fall after Fed cuts - Today's mortgage rates, September 19, 2024
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Mortgage rates fell 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 | 6.17% | 6.27% | -0.10 |
| 15-year fixed | 5.42% | 5.53% | -0.11 |
| 5/1 ARM | 5.70% | 5.79% | -0.09 |
| 30-year fixed jumbo | 6.29% | 6.37% | -0.08 |
Rates accurate as of September 19, 2024.
The rates listed here are marketplace averages based on the assumptions here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, September 19th, 2024 at 7:30 a.m. ET.
Market mortgage rates constantly change as the economy ebbs and flows, new data releases 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?
30-year mortgage rate declines, -0.10%
The average rate for a 30-year fixed mortgage for today is 6.17 percent, down 10 basis points from a week ago. Last month on the 19th, the average rate on a 30-year fixed mortgage was higher, at 6.49 percent.
At the current average rate, you'll pay $610.52 per month in principal and interest for every $100,000 you borrow. That represents a decline of $6.50 over what it would have been last week.
While the 30-year rate is the most popular mortgage term, as with any financial product, the 30-year mortgage does have some negatives, including:
- More total interest paid. A 30-year term means you'll pay more overall in interest compared with what you'd pay with a shorter-term loan.
- Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
- Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
- Buying a pricier house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.
Read more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate dips, -0.11%
The average 15-year fixed-mortgage rate is 5.42 percent, down 11 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $813 per $100,000 borrowed.
5/1 adjustable rate mortgage trends down, -0.09%
The average rate on a 5/1 ARM is 5.70 percent, sliding 9 basis points from a week ago.
Monthly payments on a 5/1 ARM at 5.70 percent would cost about $580 for each $100,000 borrowed over the initial five years.
Jumbo mortgage rate retreats, -0.08%
Today's average rate for jumbo mortgages is 6.29 percent, a decrease of 8 basis points from a week ago. A month ago, the average rate for jumbo mortgages was above that at 6.66 percent.
At today's average jumbo rate, you'll pay a combined $618.32 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $5.22 lower.
30-year mortgage refinance rate declines, -0.12%
The average 30-year fixed-refinance rate is 6.18 percent, down 12 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.45 percent.
At the current average rate, you'll pay $611.17 per month in principal and interest for every $100,000 you borrow. That represents a decline of $7.80 over what it would have been last week.
When will mortgage rates go down?
Recent rate drops have made refinancing appealing to some homeowners. For purchase loans, many are still holding out for lower rates, according to Bankrate’s 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.
More on current mortgage rates
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.
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