Rates remain elevated | Today's mortgage rates, September 5, 2024

Written by

Sep 05, 2024 / 4 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 .

Mortgage interest rates were mixed compared to last week, according to Bankrate data. Read on for a detailed breakdown of how different loan types moved.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.43%	6.43%	N/C
15-year fixed	5.78%	5.83%	-0.05
5/1 ARM	5.88%	5.96%	-0.08
30-year fixed jumbo	6.53%	6.53%	N/C

Rates last updated September 5, 2024.

The rates listed here are Bankrate's overnight average rates and are based on the assumptions indicated 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 5th, 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, 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 goes unchanged

Today's average 30-year fixed-mortgage rate is 6.43 percent, unchanged from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.50 percent.

At the current average rate, you'll pay a combined $627.47 per month in principal and interest for every $100,000 you borrow.

The popular 30-year mortgage has a number of advantages:

Lower monthly payment: The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
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 still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
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.

Learn more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate retreats, -0.05%

The average 15-year fixed-mortgage rate is 5.78 percent, down 5 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $832 per $100,000 borrowed.

5/1 ARM rate drops, -0.08%

The average rate on a 5/1 ARM is 5.88 percent, ticking down 8 basis points from a week ago.

Monthly payments on a 5/1 ARM at 5.88 percent would cost about $592 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate goes unchanged

Today's average rate for jumbo mortgages is 6.53 percent, unaltered over the last seven days. This time a month ago, the average rate for jumbo mortgages was greater than 6.53 at 6.68 percent.

At today's average rate, you'll pay $634.04 per month in principal and interest for every $100,000 you borrow.

Today's 30-year mortgage refinance rate climbs, +0.02%

The average 30-year fixed-refinance rate is 6.44 percent, up 2 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 6.50 percent.

At the current average rate, you'll pay $628.13 per month in principal and interest for every $100,000 you borrow. That's an increase of $1.31 over what you would have paid last week.

When will mortgage rates go down?

With all signs pointing to a Fed cut in September, there’s room for mortgage rates to fall more in the coming weeks and over the next year.

“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.