Rates go down as Fed prepares cut - Mortgage rates for September 17, 2024

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Sep 17, 2024 / 3 min read

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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	6.34%	6.39%	-0.05
15-year fixed	5.66%	5.74%	-0.08
5/1 ARM	5.90%	6.01%	-0.11
30-year fixed jumbo	6.48%	6.63%	-0.15

Rates as of September 17, 2024.

The rates listed above are Bankrate's overnight average rates and are 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 Tuesday, September 17th, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, policymakers and investors digest new data 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 have continued their fall into September, dipping below 6.5 percent as of Sept. 11. Slower inflation and weaker jobs numbers make it almost certain the Fed will cut rates at its next meeting on Sept. 18.

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, your housing needs might change regardless of the Fed, inflation and yields. If you want to buy a home or need to sell now, shop around to find the lowest-possible rate.

30-year mortgage dips, -0.05%

Today's average 30-year fixed-mortgage rate is 6.34 percent, down 5 basis points since the same time last week. Last month on the 17th, the average rate on a 30-year fixed mortgage was higher, at 6.54 percent.

At the current average rate, you'll pay a combined $621.58 per month in principal and interest for every $100,000 you borrow. That's down $3.27 from what it would have been last week.

Learn more about 30-year mortgage rates, and compare to a variety of other loan types.

15-year mortgage rate moves lower, -0.08%

The average rate for a 15-year fixed mortgage is 5.66 percent, down 8 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $826 per $100,000 borrowed.

5/1 adjustable rate mortgage trends down, -0.11%

The average rate on a 5/1 adjustable rate mortgage is 5.90 percent, sliding 11 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 5.90 percent would cost about $593 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate declines, -0.15%

The average rate for the benchmark jumbo mortgage is 6.48 percent, down 15 basis points over the last week. A month ago, jumbo mortgages' average rate was higher at 6.66 percent.

At the average rate today for a jumbo loan, you'll pay a combined $630.75 per month in principal and interest for every $100,000 you borrow. That's down $9.89 from what it would have been last week.

30-year mortgage refinance goes unchanged

The average 30-year fixed-refinance rate is 6.34 percent, unchanged since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.51 percent.

At the current average rate, you'll pay $621.58 per month in principal and interest for every $100,000 you borrow.

When will mortgage rates go down?

With the likely Fed rate cut on Sept. 18 and more cuts to potentially come, mortgage rates could continue to fall through the end of 2024 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 drop in rates in August and September has spurred some homeowners to refinance. 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.

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.